Stock Analysis on Net

Reynolds American Inc. (NYSE:RAI)

$22.49

This company has been moved to the archive! The financial data has not been updated since May 3, 2017.

Enterprise Value to FCFF (EV/FCFF)

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Free Cash Flow to The Firm (FCFF)

Reynolds American Inc., FCFF calculation

US$ in millions

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12 months ended: Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Net income
Net noncash charges
Other changes that provided (used) cash
Net cash flows from operating activities
Interest paid, net of tax1
Capital expenditures
Free cash flow to the firm (FCFF)

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Reynolds American Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Reynolds American Inc. FCFF decreased from 2014 to 2015 but then increased from 2015 to 2016 not reaching 2014 level.

Interest Paid, Net of Tax

Reynolds American Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Effective Income Tax Rate (EITR)
EITR1
Interest Paid, Net of Tax
Interest paid, before tax
Less: Interest paid, tax2
Interest paid, net of tax

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

1 See details »

2 2016 Calculation
Interest paid, tax = Interest paid × EITR
= × =


Enterprise Value to FCFF Ratio, Current

Reynolds American Inc., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV)
Free cash flow to the firm (FCFF)
Valuation Ratio
EV/FCFF
Benchmarks
EV/FCFF, Competitors1
Altria Group Inc.
Coca-Cola Co.
PepsiCo Inc.
Philip Morris International Inc.

Based on: 10-K (reporting date: 2016-12-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

Reynolds American Inc., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Selected Financial Data (US$ in millions)
Enterprise value (EV)1
Free cash flow to the firm (FCFF)2
Valuation Ratio
EV/FCFF3
Benchmarks
EV/FCFF, Competitors4
Altria Group Inc.
Coca-Cola Co.
PepsiCo Inc.
Philip Morris International Inc.

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

1 See details »

2 See details »

3 2016 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Reynolds American Inc. EV/FCFF ratio increased from 2014 to 2015 but then slightly decreased from 2015 to 2016 not reaching 2014 level.