Philip Morris International (XSWX:PMI) Effective Interest Rate on Debt %: 1.87% (As of Mar. 2026)


XSWX:PMI Philip Morris International Inc XSWX:PMI
86 GF Score
Price CHF151.00
GF Value CHF115.15
Valuation Significantly Overvalued
! 7 Warning Signs
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What is Philip Morris International Effective Interest Rate on Debt %?

Philip Morris International XSWX:PMI 86 Effective Interest Rate on Debt % is 1.87% as of Mar. 2026. GuruFocus rates XSWX:PMI with a GF Score™ of 86/100 and a GF Value™ of CHF115.15 (Significantly Overvalued). The stock has 7 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Philip Morris International's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was CHF746 Mil. Philip Morris International's average total debt for the quarter that ended in Mar. 2026 was CHF39,908 Mil. Therefore, Philip Morris International's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 1.87%.


Philip Morris International  (XSWX:PMI) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Philip Morris International Effective Interest Rate on Debt % Related Terms


Philip Morris International Effective Interest Rate on Debt % Historical Data

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The historical data trend for Philip Morris International's Effective Interest Rate on Debt % can be seen below:

* 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.

Philip Morris International Effective Interest Rate on Debt % Chart

Philip Morris International Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.53 2.18 3.23 3.83 3.18

Philip Morris International Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.01 2.10 1.79 6.79 1.87

XSWX:PMI vs MO, TPB, UVV: Effective Interest Rate on Debt % Comparison

For the Tobacco subindustry, Philip Morris International's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % vs Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, Philip Morris International's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Philip Morris International's Effective Interest Rate on Debt % falls into.


XSWX:PMI
86GF Score
Philip Morris International Inc XSWX:PMI
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Philip Morris International Effective Interest Rate on Debt % Calculation

Philip Morris International's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -1264.68/( (40741.662+38916.612)/ 2 )
=-1  *  -1264.68/39829.137
=3.18 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=37595.206 + 3146.456
=40741.662

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=35967.285 + 2949.327
=38916.612

Philip Morris International's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -746.36/( (38916.612+40898.66)/ 2 )
=-1  *  -746.36/39907.636
=1.87 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=35967.285 + 2949.327
=38916.612

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=34490.038 + 6408.622
=40898.66

* 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 Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 1.87% mean?
Philip Morris International (XSWX:PMI) has a Effective Interest Rate on Debt % of 1.87% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Philip Morris International and its competitors.
Is Philip Morris International's Effective Interest Rate on Debt % too high?
Philip Morris International's current Effective Interest Rate on Debt % is 1.87%. 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 Effective Interest Rate on Debt % compare to MO and TPB?
Philip Morris International's Effective Interest Rate on Debt % of 1.87% can be compared against companies in the Tobacco Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Tobacco Products company?
A good Effective Interest Rate on Debt % depends on the Tobacco Products industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Philip Morris International and its competitors. Philip Morris International's current Effective Interest Rate on Debt % is 1.87%. 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 (XSWX:PMI) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF115.15, compared to a current price of CHF151.00 — trading 31.1% above its estimated fair value. The current Effective Interest Rate on Debt % is 1.87%. 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 Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Philip Morris International (XSWX:PMI), the current Effective Interest Rate on Debt % is 1.87% 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 (XSWX:PMI) Overvalued in 2026?

Based on GuruFocus' analysis, Philip Morris International stock appears to be overvalued. The current stock price of CHF151.00 is trading 31.1% above its estimated GF Value™ of CHF115.15. GuruFocus considers Philip Morris International to be Significantly Overvalued.

Key valuation signals for XSWX:PMI:

  • Effective Interest Rate on Debt %: 1.87%
  • GF Value™: CHF115.15 vs. price of CHF151.00 (31.1% above fair value)
  • GF Score™: 86/100 with 7 warning signs

No single metric tells the full story. See the XSWX:PMI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Philip Morris International Business Description

Address 677 Washington Boulevard, Suite 1100, Stamford, CT, USA, 06901
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

Get the complete analysis for XSWX:PMI

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF151.00
Price
CHF115.15
GF Value