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Compounder

Philip Morris International

Held by 9 superinvestors (PM).

Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.

Valuation

Valuation · two methods

Earnings Power & Asset Floor

Two intrinsic-value methods and a tangible asset floor — deterministic, not price forecasts or recommendations.

Above fair valueLittle to no margin of safety today.
margin of safety
fair value
above fair value
$182
cheaper$51 – $87 value estimatepricier

Philip Morris International (PM): A conservative earnings-power estimate, $51–$87 / sh; today’s price sits above it (price $182 as of 2026-07-02).

An observation from two valuation methods — not investment advice, not a buy/sell signal, and not a price target.

Price as of 2026-07-02 · yahoo · DGS10 4.4% @ 2026-06-25.

Method & numbers

Owner-earnings DCF $51.40 – $81.63 · Greenwald zero-growth $86.92 · zero-growth base $86.92

Moat Not assessable · terminal value 40% of present value · owner-earnings yield 3% vs 10Y 4.4%.

Graham earnings-power value (normalized NOPAT)$71.67 – $86.92 / sh

Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.

Years: 2025, 2024, 2023, 2022, 2021

v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Only one maintenance-capex method available; estimate is degraded. Share-based compensation is left as a real expense (not added back). Operating margin is below its multi-year average (cyclical/declining): normalized margin capped at the latest year — no peak-margin capitalization (audit #2).

Buffett owner-earnings value$48.61 – $59.41 / sh

Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 9–11% rate band (read as a cost-of-equity proxy). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).

Years: 2025, 2024, 2023, 2022, 2021

v1 simplifications: Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the same 9–11% band as a cost-of-equity proxy (theoretically the cost of equity is higher; v2 simplification, v3 to refine).

Asset floor: Reproduction value = tangible net assets (equity − goodwill − intangibles) + capitalized R&D (5y straight-line), ÷ diluted shares.

Moat reading: Franchise test compares earnings power (EPV) against reproduction value (tangible net assets + capitalized R&D). EPV well above reproduction value signals a moat; near it, a commodity; below it, value destruction. A directional reading, not a verdict.

Growth value gated to zero — no moat / ROIIC ≤ WACC, so no growth value is credited.

Window FY 2025, 2024, 2023, 2022, 2021 · discount band 9%11% · normalized tax 21% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.

Owner-earnings DCF: growth g₁ 6% · OE FY 2025, 2024, 2023, 2022, 2021 · Discount band: 8.90%–12.00% (DGS10 +4.5% to a 12% strict end, as of 2026-06-25). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp.

Ownership · 13F consensus

Who's buying it

Institutional ownership aggregated across funds — consensus strength and this quarter's moves. Describes actions, not advice.

9 superinvestors hold it · $1.72B combined

This quarter1 opened6 trimmed2 exited

Largest holder Terry Smith

Held by 9 superinvestors of Philip Morris International (PM); this quarter 1 opened, 6 trimmed, 2 exited (as of 2026-03-31).

13F positions are self-reported and can lag up to 45 days. Informational only — not investment advice.

Next · is it cheap

PM's price is not below its conservative value band.

See which stocks are in the strike zone right now

Superinvestors Holding This Security

Ownership overview

Philip Morris International (PM) is held by 9 of the superinvestors tracked on Compounder, with a combined $1.72B in reported 13F value. The largest position belongs to Terry Smith, where it makes up 6.6% of the portfolio.

Other notable holders by value include Thomas Russo (9.0% of its book), Lee Ainslie (1.1% of its book) and Thomas Gayner (0.2% of its book).

Over the latest quarter, 1 of the tracked filers opened a new position in PM, 0 added to existing ones, 6 trimmed, and 2 sold out entirely.

Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-03-31. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.

Holders over time

Superinvestors holding this security over the last 8 quarters: 12 → 9.

Early quarters may understate holder counts due to data backfill — read the slope with care.

Key facts & links

Ticker
PM
Total value held
$1.72B
Largest holder
Terry Smith
External

Sources· SEC EDGAR 13F as of 2026-03-31 · filed 2026-05-15

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