Stock Analysis on Net

Raytheon Co. (NYSE:RTN)

This company has been moved to the archive! The financial data has not been updated since February 12, 2020.

Enterprise Value (EV) 

Microsoft Excel

Current Enterprise Value (EV)

Raytheon Co., current enterprise value calculation

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Current share price (P) $229.76
No. shares of common stock outstanding 278,441,000
US$ in millions
Common equity (market value)1 63,975
Add: Noncontrolling interests in subsidiaries (per books)
Total equity 63,975
Add: Commercial paper and current portion of long-term debt (per books) 1,499
Add: Long-term debt, excluding current portion (per books) 3,261
Total equity and debt 68,735
Less: Cash and cash equivalents 4,292
Less: Short-term investments
Enterprise value (EV) 64,443

Based on: 10-K (reporting date: 2019-12-31).

1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 229.76 × 278,441,000


Historical Enterprise Value (EV)

Raytheon Co., EV calculation

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Share price1, 2 $229.76 $180.94 $212.58 $151.96 $126.57
No. shares of common stock outstanding1 278,441,000 282,239,000 288,506,000 292,880,000 298,998,000
US$ in millions
Common equity (market value)3 63,975 51,068 61,331 44,506 37,844
Add: Noncontrolling interests in subsidiaries (book value) 202
Total equity 63,975 51,068 61,331 44,506 38,046
Add: Commercial paper and current portion of long-term debt (book value) 1,499 300 300
Add: Long-term debt, excluding current portion (book value) 3,261 4,755 4,750 5,335 5,330
Total equity and debt 68,735 56,123 66,381 49,841 43,376
Less: Cash and cash equivalents 4,292 3,608 3,103 3,303 2,328
Less: Short-term investments 297 100 872
Enterprise value (EV) 64,443 52,515 62,981 46,438 40,176

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 Data adjusted for splits and stock dividends.

2 Closing price as at the filing date of Raytheon Co. Annual Report.

3 2019 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 229.76 × 278,441,000


Equity Trends
Over the five-year period, both common equity (market value) and total equity demonstrated a general upward trajectory. Starting at approximately $37.8 billion in 2015, these figures increased to about $44.5 billion in 2016 and experienced a notable surge to $61.3 billion by the end of 2017. Subsequently, there was a decrease to approximately $51.1 billion in 2018, followed by a rebound to nearly $64.0 billion in 2019. This pattern reflects some volatility, especially between 2017 and 2018, but with strong overall growth in equity levels.
Total Equity and Debt
Total equity and debt showed an increasing trend with fluctuations similar to those observed in equity values. From approximately $43.4 billion in 2015, the figure rose to roughly $49.8 billion in 2016 and peaked at $66.4 billion in 2017. There was a decline in 2018 to about $56.1 billion, then a recovery to $68.7 billion in 2019. The trend suggests that the company’s capital structure expanded notably through 2017, contracted somewhat in 2018, and then expanded again in the following year.
Enterprise Value
Enterprise value mirrored the movements seen in total equity and debt but at consistently lower absolute values. Beginning at around $40.2 billion in 2015, the enterprise value increased steadily to about $46.4 billion in 2016 and $63.0 billion in 2017. It then decreased to roughly $52.5 billion in 2018, before ascending again to nearly $64.4 billion in 2019. This pattern aligns with fluctuations in equity and debt levels, indicating changes in the company's market valuation and capital structure over time.
General Insights
The data indicate a company experiencing significant capital growth overall, punctuated by a contraction phase in 2018. The increase in both equity and debt components suggests active financing and investment activity influencing the company’s capitalization. The enterprise value trends imply that market perceptions and valuation have broadly tracked these changes. The dip observed in 2018 across most metrics may indicate a period of adjustment or response to external or internal factors, followed by recovery in the subsequent year.