Philip Morris InternationalPM +2.20%87 5-Year Yield-on-Cost % is 3.66 as of Jul. 07, 2026, which is 38% below its 10-year median of 5.89. GuruFocus rates PM with a GF Score™ of 87/100 and a GF Value™ of $143.19 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 31 Tobacco Products companies, Philip Morris International ranks worse than 80.65% on this metric.
The historical rank and industry rank for Philip Morris International's 5-Year Yield-on-Cost % or its related term are showing as below:
PM'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 3.41 Med: 5.89 Max: 8.89
Current: 3.66
During the past 13 years, Philip Morris International's highest Yield on Cost was 8.89. The lowest was 3.41. And the median was 5.89.
PM's 5-Year Yield-on-Cost % is ranked worse than 80.65% of 31
companies
in the Tobacco Products industry
Industry Median: 6.02
vs PM: 3.66
Philip Morris International (NYSE:PM) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Philip Morris International 5-Year Yield-on-Cost % Related Terms
PM vs MO, TPB, UVV: 5-Year Yield-on-Cost % Comparison
For the Tobacco subindustry, Philip Morris International's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Philip Morris International's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Philip Morris International's 5-Year Yield-on-Cost % falls into.
Philip Morris International 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Philip Morris International (PM) has a 5-Year Yield-on-Cost % of 3.66 as of Jul. 07, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Philip Morris International and its competitors. This is 38% below median its historical median of 5.89. Over the past decade, Philip Morris International's 5-Year Yield-on-Cost % has ranged from 3.41 to 8.89. According to the industry distribution chart, Philip Morris International ranks #25 out of 31 companies in the Tobacco Products industry, placing it in the top 80.6%.
Is Philip Morris International's 5-Year Yield-on-Cost % too high?
Philip Morris International's current 5-Year Yield-on-Cost % of 3.66 is 38% below median its 10-year median of 5.89. Over the past 10 years, this metric has ranged from a low of 3.41 to a high of 8.89. The Tobacco Products industry median 5-Year Yield-on-Cost % is 6.02. Philip Morris International's value of 3.66 is 39.2% below this industry median. Based on the distribution chart, Philip Morris International ranks #25 out of 31 companies in the Tobacco Products industry, which is in the bottom quartile relative to peers. Overall, Philip Morris International has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Philip Morris International's 5-Year Yield-on-Cost % compare to MO and TPB?
According to the Tobacco Products industry distribution chart, Philip Morris International ranks #25 out of 31 companies for 5-Year Yield-on-Cost %. This places Philip Morris International in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 6.02. Philip Morris International's value of 3.66 is 39.2% below this benchmark. Historically, Philip Morris International's own 5-Year Yield-on-Cost % has ranged from 3.41 to 8.89 over the past decade. While the company's 10-year median is 5.89 vs. the industry median of 6.02, Philip Morris International has consistently been below 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 5-Year Yield-on-Cost % for a Tobacco Products company?
The median 5-Year Yield-on-Cost % among Tobacco Products companies is 6.02, based on 31 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Philip Morris International's current 5-Year Yield-on-Cost % of 3.66 is 39.2% below 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Philip Morris International and its competitors. For the Tobacco Products industry, the median 5-Year Yield-on-Cost % is 6.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Philip Morris International's current 5-Year Yield-on-Cost % is 3.66, which is 38% below median its own 10-year median of 5.89. 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 $143.19, compared to a current price of $188.83 — trading 31.9% above its estimated fair value. The current 5-Year Yield-on-Cost % is 3.66, which is 38% below median its 10-year median of 5.89 and 39.2% below the Tobacco Products industry median of 6.02. Philip Morris International's overall GF Score™ is 87/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Philip Morris International (PM), the current 5-Year Yield-on-Cost % is 3.66 as of Jul. 07, 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 $188.83 is trading 31.9% above its estimated GF Value™ of $143.19.
GuruFocus considers Philip Morris International to be Modestly Overvalued.
Key valuation signals for PM:
5-Year Yield-on-Cost %: 3.66 (38% below median its 10-year median of 5.89)
GF Value™: $143.19 vs. price of $188.83 (31.9% above fair value)
Industry Position: 39.2% below the Tobacco Products median (#25 of 31)
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.
87GF Score
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