Philip Morris’s Q2 2018 Valuation Multiple Falls on Weak Outlook
Of all the available valuation multiples, we’ll use the forward PE (price-to-earnings) multiple due to its high visibility in Philip Morris International’s (PM) future earnings. The forward PE multiple is calculated by dividing the company’s stock price from analysts’ EPS expectations for the next four quarters. On July 19, Philip Morris was trading at a forward PE multiple of 15.0x compared to 15.2x before the announcement of its second-quarter earnings.