Philip Morris InternationalPM +2.58%86 ROC (Joel Greenblatt) % is 178.64% as of Mar. 2026, which is 1% below its 10-year median of 180.48. GuruFocus rates PM with a GF Score™ of 86/100 and a GF Value™ of $143.12 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 47 Tobacco Products companies, Philip Morris International ranks better than 85.11% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Philip Morris International's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 178.64%.
The historical rank and industry rank for Philip Morris International's ROC (Joel Greenblatt) % or its related term are showing as below:
PM'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 154.25 Med: 180.48 Max: 206.96
Current: 192.4
During the past 13 years, Philip Morris International's highest ROC (Joel Greenblatt) % was 206.96%. The lowest was 154.25%. And the median was 180.48%.
PM's ROC (Joel Greenblatt) % is ranked better than 85.11% of 47
companies
in the Tobacco Products industry
Industry Median: 43.16
vs PM: 192.40
Philip Morris International (NYSE:PM) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
* 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 ROC (Joel Greenblatt) % Chart
PM vs MO, TPB, UVV: ROC (Joel Greenblatt) % Comparison
For the Tobacco subindustry, Philip Morris International's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Philip Morris International's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Philip Morris International's ROC (Joel Greenblatt) % falls into.
Philip Morris International ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 178.64% mean?
Philip Morris International (PM) has a ROC (Joel Greenblatt) % of 178.64% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Philip Morris International and its competitors. This is near median its historical median of 180.48. Over the past decade, Philip Morris International's ROC (Joel Greenblatt) % has ranged from 154.25 to 206.96. According to the industry distribution chart, Philip Morris International ranks #7 out of 47 companies in the Tobacco Products industry, placing it in the top 14.9%.
Is Philip Morris International's ROC (Joel Greenblatt) % too high?
Philip Morris International's current ROC (Joel Greenblatt) % of 178.64% is near median its 10-year median of 180.48. Over the past 10 years, this metric has ranged from a low of 154.25 to a high of 206.96. The Tobacco Products industry median ROC (Joel Greenblatt) % is 43.16. Philip Morris International's value of 178.64% is 313.9% above this industry median. Based on the distribution chart, Philip Morris International ranks #7 out of 47 companies in the Tobacco Products industry, which is in the top quartile — a strong position relative to peers. Overall, Philip Morris International has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Philip Morris International's ROC (Joel Greenblatt) % compare to MO and TPB?
According to the Tobacco Products industry distribution chart, Philip Morris International ranks #7 out of 47 companies for ROC (Joel Greenblatt) %. This places Philip Morris International in the top 15% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 43.16. Philip Morris International's value of 178.64% is 313.9% above this benchmark. Historically, Philip Morris International's own ROC (Joel Greenblatt) % has ranged from 154.25 to 206.96 over the past decade. While the company's 10-year median is 180.48 vs. the industry median of 43.16, 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 ROC (Joel Greenblatt) % for a Tobacco Products company?
The median ROC (Joel Greenblatt) % among Tobacco Products companies is 43.16, based on 47 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Philip Morris International's current ROC (Joel Greenblatt) % of 178.64% is 313.9% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Philip Morris International and its competitors. For the Tobacco Products industry, the median ROC (Joel Greenblatt) % is 43.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Philip Morris International's current ROC (Joel Greenblatt) % is 178.64%, which is near median its own 10-year median of 180.48. 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 Modestly Overvalued. The stock's GF Value™ is $143.12, compared to a current price of $182.27 — trading 27.4% above its estimated fair value. The current ROC (Joel Greenblatt) % is 178.64%, which is near median its 10-year median of 180.48 and 313.9% above the Tobacco Products industry median of 43.16. Philip Morris International's overall GF Score™ is 86/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Philip Morris International (PM), the current ROC (Joel Greenblatt) % is 178.64% 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 $182.27 is trading 27.4% above its estimated GF Value™ of $143.12.
GuruFocus considers Philip Morris International to be Modestly Overvalued.
Key valuation signals for PM:
ROC (Joel Greenblatt) %: 178.64% (near median its 10-year median of 180.48)
GF Value™: $143.12 vs. price of $182.27 (27.4% above fair value)
Industry Position: 313.9% above the Tobacco Products median (#7 of 47)
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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