PMNEUTRAL

PM EV/EBITDA Analysis

18.7x

Higher than 75% of Consumer Defensive sector peers

Updated 5h ago·SEC filings & market data

Key Takeaway

PM trades at 18.6 times EV/EBITDA, a ratio that compares a company's total enterprise value to its operating earnings before interest, taxes, depreciation, and amortization.

Sector Performance

75th percentile

18.7x

Sector Median

11.6x

Sector Avg

13.5x

Prior Period

18.9x(Aug 2026)

↑ Improving

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Deep Analysis

PM trades at 18.6 times EV/EBITDA, a ratio that compares a company's total enterprise value to its operating earnings before interest, taxes, depreciation, and amortization.

This is far above the sector median of 11.6x, placing PM in the 75th percentile among Consumer Defensive peers, meaning most similar companies carry cheaper valuations. The multiple has been stable over the last eight quarters, with a year-over-year increase of +5.7% and a quarter-over-quarter decline of -1.6%. A high valuation that is holding steady implies the current price already reflects expected earnings; the risk is limited upside from multiple expansion, while the opportunity relies on profit growth catching up. This combination supports the overall NEUTRAL verdict, as the premium price is not accelerating away from fundamentals but also offers no clear margin of safety.

Frequently Asked Questions

What does the EV/EBITDA tell investors about PM?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does PM's EV/EBITDA compare to its sector?

PM's EV/EBITDA of 18.7x compares to a Consumer Defensive sector median of 11.6x, placing it in the 75th percentile.

Who are PM's closest peers by EV/EBITDA?

The closest Consumer Defensive peers by EV/EBITDA include: ADM (11.6x), MO (8.6x), ABEV (6.8x), WMT (22.1x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.