Philip Morris International (NYSE:PM) Valuation After Renewed Ferrari Partnership and Reaffirmed 2025 Guidance

Philip Morris International (NYSE:PM) just extended its more than 50 year partnership with Ferrari, securing premium branding across Scuderia Ferrari HP from January 2026. This is a visibility play that complements its reaffirmed 2025 earnings guidance.

See our latest analysis for Philip Morris International.

Even with the Ferrari deal and reaffirmed 2025 EPS guidance, recent trading has been choppy, with a 7 day share price return of negative 5.34 percent and a 90 day share price return of negative 10.28 percent. However, the 5 year total shareholder return of 124.24 percent shows that long term momentum remains firmly intact.

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Yet with earnings guidance intact, solid growth, and the stock still trading at a material discount to analyst targets, investors face a key question: Is Philip Morris undervalued today, or is the market already pricing in its next leg of growth?

Most Popular Narrative Narrative: 19.2% Undervalued

With the narrative fair value sitting meaningfully above the last close of $147.81, the current pullback is framed as a potential entry point.

The accelerating global adoption of smoke free alternatives driven by increasing health awareness and regulatory moves away from combustibles is fueling strong double digit volume and margin growth in PMI's IQOS, ZYN, and VEEV platforms. This secular shift enables the company to capture new consumer segments, expand its addressable market, and structurally boost net revenues and operating margins over time.

Read the complete narrative.

Curious how this smoke free shift translates into that higher valuation? The narrative leans on powerful growth, rising margins, and a punchy future earnings multiple. Want to see the full playbook?

Result: Fair Value of $182.94 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent regulatory uncertainty and any slowdown in IQOS or ZYN adoption could quickly challenge the upbeat growth and valuation assumptions behind this narrative.

Find out about the key risks to this Philip Morris International narrative.

Build Your Own Philip Morris International Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom narrative in just minutes: Do it your way.

A great starting point for your Philip Morris International research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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