Philip Morris in a dying industry - leaving competitors fuming

• Autor(a) principal: Martins, Rafael Fernandes
• Data de Publicação: 2022
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/157247
• topic: Philip Morris international; Equity research valuation; Smoke-free future; Reduced-risk-products; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

This report is an equity valuation of Philip Morris International Inc., the tobacco company leading the transition to a smoke-free future. For this, both a relative valuation based on multiples and transactions as well as an intrinsic valuation in the form of a DCF model were completed. The calculated target share price of $108.16 represents a Buy recommendation with a potential total return on investment of 10.79% including the dividend yield. Particularly given PMI's evolving business strategy and clear future focus on risk-reduced products, the company’s competitive position was highly valued. In addition, scenario and sensitivity analyses were conducted to evaluate potential outcomes of assumption deviation.