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Abstract(s)
This dissertation is focused on the equity valuation of Philip Morris International, Inc.,
the leading publicly traded tobacco company. In other words, the work done on this
paper aims at determining how much the company is worth given its current assets
and position in the market. Such analysis is of great importance for shareholders and
potential investors, since the market is not always able to reflect the assets’ true value.
Underlying this challenge is an overview of the main equity valuation methodologies
and theories, along with other aspects considered as essential in a valuation process.
In this context, three methodologies were considered suitable. However, the
conclusions were more influenced by the adjusted present value methodology. Philip
Morris Int’ is found to be undervalued with 28.32% upside potential, a BUY
recommendation. Finally, the methodologies used and results obtained were
contrasted to those of UBS Investment Bank, in their report published on April 19th
2012. For a more detailed overview of the dissertation main findings, read the
executive summary on appendix O.