PEG Ratio
Higher than 50% of Consumer Defensive sector peers
Updated 1928h ago
Sector Performance
50th percentilePM
1.63x
Sector Median
1.63x
Sector Avg
5.78x
Deep Analysis
PM's PEG ratio of 1.63x indicates the stock is trading at 1.63 times its expected earnings growth rate, suggesting the market is pricing in a relatively modest growth premium.
This valuation metric is 90% higher than the Consumer Defensive sector median of 0.86x, placing PM at the 100th percentile among sector peers—meaning it is more expensive relative to its growth prospects than virtually all comparable companies. The PEG ratio has remained flat at 1.63x over the last two quarters, indicating stable but persistently elevated valuation levels. For investors, this positioning suggests PM commands a growth premium despite operating in a mature, defensive sector, which typically warrants lower valuations. This elevated relative valuation may limit upside potential unless the company's underlying growth trajectory accelerates materially.
Frequently Asked Questions
What does the PEG Ratio tell investors about PM?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
How does PM's PEG Ratio compare to its sector?
PM's PEG Ratio of 1.63x compares to a Consumer Defensive sector median of 1.63x, placing it in the 50th percentile.
Who are PM's closest peers by PEG Ratio?
The closest Consumer Defensive peers by PEG Ratio include: ABEV (1.59x), WMT (2.09x), MO (0.14x), BTI (0.11x), BUD (3.64x).
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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1.63x
Sector Median
1.63x
Sector Avg
5.78x
How PM's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.