The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 4.27 is strong.
Philip Morris International has a Altman Z-Score of 4.24, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Philip Morris International's Altman Z-Score or its related term are showing as below:
MEX:PM'
s Altman Z-Score Range Over the Past 10 Years
Min: 2.93 Med: 4.27 Max: 5.22
Current: 4.27
During the past 13 years, Philip Morris International's highest Altman Z-Score was 5.22. The lowest was 2.93. And the median was 4.27.
Philip Morris International (MEX:PM) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
* 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 Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Philip Morris International's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Philip Morris International's Altman Z-Score falls into.
Philip Morris International Altman Z-Score Calculation
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Philip Morris International (MEX:PM) has a Altman Z-Score of 4.24 as of Jun. 26, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Philip Morris International and its competitors. This is near median its historical median of 4.27. Over the past decade, Philip Morris International's Altman Z-Score has ranged from 2.93 to 5.22. According to the industry distribution chart, Philip Morris International ranks #24 out of 47 companies in the Tobacco Products industry, placing it in the top 51.1%.
Is Philip Morris International's Altman Z-Score too high?
Philip Morris International's current Altman Z-Score of 4.24 is near median its 10-year median of 4.27. Over the past 10 years, this metric has ranged from a low of 2.93 to a high of 5.22. The Tobacco Products industry median Altman Z-Score is 4.27. Philip Morris International's value of 4.24 is 0.7% below this industry median. Based on the distribution chart, Philip Morris International ranks #24 out of 47 companies in the Tobacco Products industry, which is below the industry midpoint. Overall, Philip Morris International has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Philip Morris International's Altman Z-Score compare to MO and TPB?
According to the Tobacco Products industry distribution chart, Philip Morris International ranks #24 out of 47 companies for Altman Z-Score. This places Philip Morris International in the lower half of its industry. The industry median Altman Z-Score is 4.27. Philip Morris International's value of 4.24 is 0.7% below this benchmark. Historically, Philip Morris International's own Altman Z-Score has ranged from 2.93 to 5.22 over the past decade. While the company's 10-year median is 4.27 vs. the industry median of 4.27, 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 Altman Z-Score for a Tobacco Products company?
The median Altman Z-Score among Tobacco Products companies is 4.27, based on 47 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Philip Morris International's current Altman Z-Score of 4.24 is 0.7% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Philip Morris International and its competitors. For the Tobacco Products industry, the median Altman Z-Score is 4.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Philip Morris International's current Altman Z-Score is 4.24, which is near median its own 10-year median of 4.27. 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 (MEX:PM) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN2,495.54, compared to a current price of MXN3,123.00 — trading 25.1% above its estimated fair value. The current Altman Z-Score is 4.24, which is near median its 10-year median of 4.27 and 0.7% below the Tobacco Products industry median of 4.27. Philip Morris International's overall GF Score™ is 75/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Philip Morris International (MEX:PM), the current Altman Z-Score is 4.24 as of Jun. 26, 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 (MEX:PM) Overvalued in 2026?
Based on GuruFocus' analysis, Philip Morris International stock appears to be overvalued.
The current stock price of MXN3,123.00 is trading 25.1% above its estimated GF Value™ of MXN2,495.54.
GuruFocus considers Philip Morris International to be Modestly Overvalued.
Key valuation signals for MEX:PM:
Altman Z-Score: 4.24 (near median its 10-year median of 4.27)
GF Value™: MXN2,495.54 vs. price of MXN3,123.00 (25.1% above fair value)
Industry Position: 0.7% below the Tobacco Products median (#24 of 47)
No single metric tells the full story. See the MEX: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.
75GF Score
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