Reinventing the tobacco industry: beyond smoke

Abstract

This individual report is one of two parts forming a comprehensive equity research report on Philip Morris International, a leading manufacturer and distributor within the tobacco industry. This part commences with a company overview, which provides a thorough examination of PMI’s business model, global presence and strategic initiatives. Thereafter, the report delves into the dynamics of the tobacco sector, encompassing a Porter’s Five Forces analysis of the industry and identifying PMI’s peer group. Moreover, a financial assessment is conducted, where the firm’s financial and operational performance is dissected through a historical and comparative analysis. Lastly, PMI’s market value is estimated through a relative valuation based on comparable firms and its outcome is assessed. ESG considerations are further presented.