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Philip Morris InternationalPM +1.65%86 Debt-to-EBITDA is 2.95 as of Mar. 2026, which is 9% above its 10-year median of 2.70. GuruFocus rates PM with a GF Score™ of 86/100 and a GF Value™ of $143.40 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 35 Tobacco Products companies, Philip Morris International ranks worse than 77.14% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Philip Morris International's Debt-to-EBITDA or its related term are showing as below:
PM'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.99 Med: 2.7 Max: 3.58
Current: 2.91
During the past 13 years, the highest Debt-to-EBITDA Ratio of Philip Morris International was 3.58. The lowest was 1.99. And the median was 2.70.
PM's Debt-to-EBITDA is ranked worse than 77.14% of 35
companies
in the Tobacco Products industry
Industry Median: 1.37
vs PM: 2.91
Philip Morris International (NYSE:PM) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Philip Morris International Debt-to-EBITDA Related Terms
Philip Morris International Debt-to-EBITDA Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Tobacco subindustry, Philip Morris International's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Philip Morris International Debt-to-EBITDA vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Philip Morris International's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Philip Morris International's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Philip Morris International (PM) has a Debt-to-EBITDA of 2.95 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Philip Morris International. This is near median its historical median of 2.70. Over the past decade, Philip Morris International's Debt-to-EBITDA has ranged from 1.99 to 3.58. According to the industry distribution chart, Philip Morris International ranks #27 out of 35 companies in the Tobacco Products industry, placing it in the top 77.1%.
Is Philip Morris International's Debt-to-EBITDA too high?
Philip Morris International's current Debt-to-EBITDA of 2.95 is near median its 10-year median of 2.70. Over the past 10 years, this metric has ranged from a low of 1.99 to a high of 3.58. The Tobacco Products industry median Debt-to-EBITDA is 1.37. Philip Morris International's value of 2.95 is 115.3% above this industry median. Based on the distribution chart, Philip Morris International ranks #27 out of 35 companies in the Tobacco Products industry, which is in the bottom quartile relative to peers. Overall, Philip Morris International has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Philip Morris International's Debt-to-EBITDA compare to MO and TPB?
According to the Tobacco Products industry distribution chart, Philip Morris International ranks #27 out of 35 companies for Debt-to-EBITDA. This places Philip Morris International in the lower half of its industry. The industry median Debt-to-EBITDA is 1.37. Philip Morris International's value of 2.95 is 115.3% above this benchmark. Historically, Philip Morris International's own Debt-to-EBITDA has ranged from 1.99 to 3.58 over the past decade. While the company's 10-year median is 2.70 vs. the industry median of 1.37, Philip Morris International has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Tobacco Products company?
The median Debt-to-EBITDA among Tobacco Products companies is 1.37, based on 35 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Philip Morris International's current Debt-to-EBITDA of 2.95 is 115.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Philip Morris International. For the Tobacco Products industry, the median Debt-to-EBITDA is 1.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Philip Morris International's current Debt-to-EBITDA is 2.95, which is near median its own 10-year median of 2.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Philip Morris International stock overvalued right now?
Based on GuruFocus' analysis, Philip Morris International (PM) is currently considered Significantly Overvalued. The stock's GF Value™ is $143.40, compared to a current price of $192.98 — trading 34.6% above its estimated fair value. The current Debt-to-EBITDA is 2.95, which is near median its 10-year median of 2.70 and 115.3% above the Tobacco Products industry median of 1.37. Philip Morris International's overall GF Score™ is 86/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Philip Morris International (PM), the current Debt-to-EBITDA is 2.95 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Philip Morris International (PM) Overvalued in 2026?
Based on GuruFocus' analysis, Philip Morris International stock appears to be overvalued.
The current stock price of $192.98 is trading 34.6% above its estimated GF Value™ of $143.40.
GuruFocus considers Philip Morris International to be Significantly Overvalued.
Key valuation signals for PM:
Debt-to-EBITDA: 2.95 (near median its 10-year median of 2.70)
GF Value™: $143.40 vs. price of $192.98 (34.6% above fair value)
Industry Position: 115.3% above the Tobacco Products median (#27 of 35)
No single metric tells the full story. See the PM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Created from the international operations of Altria in 2008, Philip Morris International sells cigarettes and reduced-risk products, including heat sticks, vapes, and oral nicotine offerings, primarily outside of the US. With the 2023 acquisition of Swedish Match, a leading manufacturer of traditional oral tobacco products and nicotine pouches primarily in the US and Scandinavia, PMI is not only dominant in smokable products but also has the Iqos and Zyn brands, which respectively dominate heated tobacco and nicotine pouches in most markets. It also owns the Veev brand in vapes.
86GF Score
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