Discounted Cash Flow (DCF) Analysis Levered

Philip Morris International Inc. (PM)

$101.695

-0.50 (-0.49%)
All numbers are in Millions, Currency in USD
Stock DCF: 134.44 | 101.695 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 28,74829,62529,80528,69431,40532,141.3432,894.9533,666.2234,455.5835,263.45
Revenue (%)
Operating Cash Flow 8,9129,47810,0909,81211,96710,873.2711,128.2111,389.1311,656.1711,929.47
Operating Cash Flow (%)
Capital Expenditure -1,548-1,436-852-602-748-1,129.47-1,155.95-1,183.05-1,210.79-1,239.18
Capital Expenditure (%)
Free Cash Flow 7,3648,0429,2389,21011,2199,743.809,972.2610,206.0810,445.3710,690.28

Weighted Average Cost Of Capital

Share price $ 101.695
Beta 0.709
Diluted Shares Outstanding 1,557
Cost of Debt
Tax Rate 25.53
After-tax Cost of Debt 1.97%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.987
Total Debt 27,806
Total Equity 158,339.11
Total Capital 186,145.11
Debt Weighting 14.94
Equity Weighting 85.06
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 28,74829,62529,80528,69431,40532,141.3432,894.9533,666.2234,455.5835,263.45
Operating Cash Flow 8,9129,47810,0909,81211,96710,873.2711,128.2111,389.1311,656.1711,929.47
Capital Expenditure -1,548-1,436-852-602-748-1,129.47-1,155.95-1,183.05-1,210.79-1,239.18
Free Cash Flow 7,3648,0429,2389,21011,2199,743.809,972.2610,206.0810,445.3710,690.28
WACC
PV LFCF 9,171.508,835.228,511.288,199.217,898.58
SUM PV LFCF 42,615.78

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.24
Free cash flow (t + 1) 10,904.09
Terminal Value 257,171.92
Present Value of Terminal Value 190,012.96

Intrinsic Value

Enterprise Value 232,628.75
Net Debt 23,310
Equity Value 209,318.75
Shares Outstanding 1,557
Equity Value Per Share 134.44