Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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Raytheon Co. pages available for free this week:
- Balance Sheet: Assets
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Analysis of Debt
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Historical Valuation Ratios (Summary)
Raytheon Co., historical price multiples (quarterly data)
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03).
- Price to Earnings (P/E) Ratio
-
The Price to Earnings ratio showed moderate fluctuations over the periods analyzed. Starting at 19.4 in early April 2016, it dipped slightly to 17.88 by October 2016 before rising again to peak at 30.3 by the end of December 2017. Following this peak, a downward trend was observed throughout 2018, reaching a low of 16.24 by March 2019. From that point, the ratio rose again to 19.14 by the end of December 2019. This pattern indicates periods of increased market optimism around late 2017, followed by more conservative valuation in 2018, and a modest recovery toward the end of 2019.
- Price to Operating Profit (P/OP) Ratio
-
The Price to Operating Profit ratio exhibited a general upward trend from April 2016 through year-end 2017, increasing from 13.6 to a high of 18.48. Subsequently, a decline was noted throughout 2018, falling steadily to 10.77 by the first quarter of 2019. The ratio then began to recover, rising to 13.4 by the end of 2019. This trend mirrors the behavior of the P/E ratio and suggests changes in market sentiment or operational profitability influencing valuation multiples over the period.
- Price to Sales (P/S) Ratio
-
The Price to Sales ratio increased from 1.6 in April 2016 to a peak of 2.42 by December 2017. This was followed by a decline during 2018, bottoming near 1.8 in the first quarter of 2019. Afterward, the ratio showed a gradual increase, reaching 2.19 by the end of 2019. The P/S ratio fluctuations indicate varying investor expectations regarding sales growth or revenue quality over time.
- Price to Book Value (P/BV) Ratio
-
The Price to Book Value ratio followed a similar pattern as other valuation multiples. Initially rising from 3.74 in April 2016 to a peak of 6.16 at the close of 2017, the ratio declined through 2018 to about 4.24 in early 2019. Subsequently, it increased to 5.23 by the end of 2019. This suggests shifts in market valuation relative to the company’s net asset base, reflecting possibly changes in investor confidence or asset valuation over the observed quarters.
Price to Earnings (P/E)
Raytheon Co., historical P/E calculation (quarterly data)
| Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jul 1, 2018 | Apr 1, 2018 | Dec 31, 2017 | Oct 1, 2017 | Jul 2, 2017 | Apr 2, 2017 | Dec 31, 2016 | Oct 2, 2016 | Jul 3, 2016 | Apr 3, 2016 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||
| Net income attributable to Raytheon Company (in millions) | |||||||||||||||||||||
| Earnings per share (EPS)2 | |||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||
| P/E ratio4 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03).
1 Data adjusted for splits and stock dividends.
2 Q4 2019 Calculation
EPS
= (Net income attributable to Raytheon CompanyQ4 2019
+ Net income attributable to Raytheon CompanyQ3 2019
+ Net income attributable to Raytheon CompanyQ2 2019
+ Net income attributable to Raytheon CompanyQ1 2019)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Raytheon Co. Quarterly or Annual Report.
4 Q4 2019 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited an overall upward trend throughout the period under review. Starting at $127.51 in April 2016, it increased steadily to reach a peak of $212.58 by December 2017. Following this peak, there was some volatility with the share price declining to $176.52 in September 2018 before gradually rising again to close at $229.76 by December 2019. The fluctuations toward the latter part of the timeline suggest periods of market correction or profit-taking, yet the general movement remains positive over the nearly four-year span.
- Earnings Per Share (EPS) Trend
- EPS showed consistent growth over the analyzed quarters, indicating improving profitability. From an initial $6.57 in April 2016, EPS increased to $7.55 by the end of 2016. This growth continued with some fluctuations, reaching $10.31 by December 2018 and further climbing to $12.01 by the end of 2019. The steady increase in EPS reflects the company’s ability to generate higher earnings per share, which could be attributed to operational efficiency, revenue growth, or successful cost management strategies during this period.
- Price-to-Earnings (P/E) Ratio Behavior
- The P/E ratio demonstrated variability but generally followed a pattern influenced by changes in share price and EPS. Starting at 19.4 in April 2016, it decreased slightly during 2016, suggesting that earnings were growing faster than the share price. Subsequently, the P/E ratio rose significantly to a peak of 30.3 in December 2017, implying that share prices were increasing faster than earnings during this phase, possibly driven by optimistic market sentiment. After this peak, the P/E ratio trended downward to around 17 by the end of 2018, indicating a relative stabilization or correction. It then modestly increased again to 19.14 by December 2019. This oscillation points towards periods of varying investor expectations about future earnings growth over the timeframe.
- Relationship Among Metrics
- The data reveal that while EPS steadily increased, the share price experienced more pronounced volatility. The rising share price and fluctuating P/E ratio suggest that market sentiment and external factors influenced stock valuation beyond purely earnings performance. The decline in P/E ratio after its late 2017 peak aligns with a period of share price correction and continued EPS growth, which potentially offered a more attractive valuation by the end of 2018. By the conclusion of 2019, both the share price and EPS were at their highest points, with the P/E ratio stabilizing in the upper teens, indicating balanced expectations between valuation and earnings performance.
Price to Operating Profit (P/OP)
Raytheon Co., historical P/OP calculation (quarterly data)
| Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jul 1, 2018 | Apr 1, 2018 | Dec 31, 2017 | Oct 1, 2017 | Jul 2, 2017 | Apr 2, 2017 | Dec 31, 2016 | Oct 2, 2016 | Jul 3, 2016 | Apr 3, 2016 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||
| Operating income (in millions) | |||||||||||||||||||||
| Operating profit per share2 | |||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||
| P/OP ratio4 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03).
1 Data adjusted for splits and stock dividends.
2 Q4 2019 Calculation
Operating profit per share
= (Operating incomeQ4 2019
+ Operating incomeQ3 2019
+ Operating incomeQ2 2019
+ Operating incomeQ1 2019)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Raytheon Co. Quarterly or Annual Report.
4 Q4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trends
- The share price demonstrated an overall upward trend from April 2016 through December 2019. Initially valued at $127.51 in April 2016, it increased steadily, reaching a peak of $212.58 by December 2017. Following this peak, there was some volatility, with the share price declining to $176.52 by September 2018 before recovering and ultimately reaching a new high of $229.76 by December 2019. This suggests a generally positive market perception of the company, albeit with periods of price correction.
- Operating Profit Per Share (OPPS) Development
- Operating profit per share exhibited consistent growth over the observed periods. Starting at $9.38 in April 2016, OPPS increased gradually each quarter. By the end of 2017, OPPS had risen moderately to $11.50, after which it accelerated, climbing to $16.08 by December 2018 and ultimately reaching $17.15 by December 2019. The sustained increase in operating profit per share indicates improving operational efficiency and profitability.
- Price to Operating Profit Ratio (P/OP) Analysis
- The P/OP ratio showed variability in response to changes in share price and operating profit. Initially declining from 13.6 in April 2016 to 12.48 in October 2016, it then increased to a peak of 18.48 in December 2017, coinciding with the rapid rise in share price relative to operating profit. Subsequently, the ratio decreased significantly to 11.25 by December 2018, reflecting the combined effect of a reduction in share price and an increase in operating profit per share. There was a slight increase in the ratio towards the end of 2019, reaching 13.4 in December 2019, suggesting that the share price appreciation outpaced operating profit growth during this period.
- Summary of Financial Insights
- The data reveals a strong upward trajectory in operating profit per share, indicating effective business performance. Share price movements generally aligned with profit trends but showed more volatility, particularly in 2018. The fluctuations in the P/OP ratio suggest changing market valuations relative to earnings, likely reflecting external market conditions or investor sentiment shifts. Overall, the company experienced growth in profitability alongside market valuation adjustments over the period examined.
Price to Sales (P/S)
Raytheon Co., historical P/S calculation (quarterly data)
| Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jul 1, 2018 | Apr 1, 2018 | Dec 31, 2017 | Oct 1, 2017 | Jul 2, 2017 | Apr 2, 2017 | Dec 31, 2016 | Oct 2, 2016 | Jul 3, 2016 | Apr 3, 2016 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||
| Net sales (in millions) | |||||||||||||||||||||
| Sales per share2 | |||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||
| P/S ratio4 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03).
1 Data adjusted for splits and stock dividends.
2 Q4 2019 Calculation
Sales per share
= (Net salesQ4 2019
+ Net salesQ3 2019
+ Net salesQ2 2019
+ Net salesQ1 2019)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Raytheon Co. Quarterly or Annual Report.
4 Q4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The financial data reveals several key trends related to the share price, sales per share, and price-to-sales (P/S) ratio over the reported periods.
- Share Price
- The share price demonstrated a significant upward trajectory throughout the analyzed period. Starting at $127.51 in early April 2016, it rose steadily with few interruptions, peaking at $229.76 by the end of December 2019. Notable increments occurred particularly from late 2017 onwards, where share prices jumped from approximately $212.58 to $229.76. There was a slight pullback in mid-2018, with prices dipping from around $211.07 to $176.52, but recovery followed shortly after, resuming an upward momentum towards year-end 2019.
- Sales per Share
- Sales per share increased consistently over the entire period, moving from $79.88 in April 2016 to $104.78 in December 2019. The growth appeared steady quarter-over-quarter, without any periods of decline or sharp volatility. This steady rise in sales per share suggests continuous operational revenue improvement at a pace slightly more moderate than the escalation in share price.
- Price-to-Sales (P/S) Ratio
- The P/S ratio showed more variability compared to the other indicators. It began at 1.6 and exhibited a general upward trend until late 2017, reaching a high of 2.42. This increase implies the market was willing to pay progressively higher premiums relative to sales during that time. However, following this peak, the P/S ratio declined to approximately 1.8 by early 2019, indicating a contraction in valuation multiples despite ongoing increases in sales and overall share price. Subsequently, the ratio rebounded by the end of the period to around 2.19, suggesting renewed investor confidence or expectations of stronger future sales growth.
Overall, the data indicates positive performance characterized by rising share prices and sales per share. The fluctuations in the P/S ratio reflect shifts in market sentiment or valuation perception, with periods of both relative premium expansion and contraction. The steady improvement in sales per share supports a fundamental growth narrative, while the share price movements highlight volatility driven by market conditions or investor expectations.
Price to Book Value (P/BV)
Raytheon Co., historical P/BV calculation (quarterly data)
| Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jul 1, 2018 | Apr 1, 2018 | Dec 31, 2017 | Oct 1, 2017 | Jul 2, 2017 | Apr 2, 2017 | Dec 31, 2016 | Oct 2, 2016 | Jul 3, 2016 | Apr 3, 2016 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||
| Total Raytheon Company stockholders’ equity (in millions) | |||||||||||||||||||||
| Book value per share (BVPS)2 | |||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||
| P/BV ratio4 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03).
1 Data adjusted for splits and stock dividends.
2 Q4 2019 Calculation
BVPS = Total Raytheon Company stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Raytheon Co. Quarterly or Annual Report.
4 Q4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The financial analysis reveals a dynamic pattern in the share price, book value per share (BVPS), and price-to-book value (P/BV) ratio over the observed quarterly periods.
- Share Price Trend
- The share price exhibited an overall upward trend with some fluctuations. It started at $127.51 and progressively increased, reaching a peak of $229.76 by the end of the period. Notable rises occurred from April 2016 through December 2017, followed by a decline in mid-2018 before recovering and continuing to rise through the end of 2019.
- Book Value Per Share (BVPS) Trend
- The BVPS showed a generally steady increase over the quarters. Beginning at $34.09, it rose moderately with some minor variations, peaking at $46.62 in September 2019 before a slight decrease to $43.90 by December 2019. This indicates a gradual enhancement in the company's net asset value on a per-share basis.
- Price-to-Book Value (P/BV) Ratio Trend
- The P/BV ratio demonstrated significant volatility. Starting at 3.74, it generally increased, peaking notably at 6.16 in December 2017, indicating that the market valuation was comparatively high relative to the book value at that time. After this peak, the ratio declined during 2018, reaching a low of 4.24 in March 2019, before climbing again to 5.23 by December 2019. The fluctuations suggest varying investor sentiment and valuation perceptions relative to the underlying book value.
In summary, the share price growth outpaced the growth in book value per share, reflected in the elevated P/BV ratios during certain quarters. The high P/BV ratio peaks coincide with periods of strong share price appreciation relative to BVPS, suggesting phases of heightened market optimism or anticipated future earnings growth. The subsequent declines in P/BV ratio alongside stabilizing or increasing BVPS point to more tempered market valuations in certain periods.