Name: Reynolds American Inc. (NYSE:RAI) | Enterprise Value (EV)
Creator: Stock Analysis on Net

Current EV
Historical EV

Reynolds American Inc., current enterprise value calculation

Current share price (P)	$64.47
No. shares of common stock outstanding	1,426,711,959
US$ in millions
Common equity (market value)¹	91,980)
Total equity	91,980)
Add: Current maturities of long-term debt (per books)	501)
Add: Long-term debt, less current maturities (per books)	12,664)
Total equity and debt	105,145)
Less: Cash and cash equivalents	2,051)
Less: Short-term investments	—)
Enterprise value (EV)	103,094)

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

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 64.47 × 1,426,711,959

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Reynolds American Inc., EV calculation

	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
Share price^1, 2	$60.54	$48.50	$35.15	$24.04	$21.97
No. shares of common stock outstanding¹	1,425,934,305	1,427,341,341	1,062,567,026	1,073,894,304	1,105,896,384
US$ in millions
Common equity (market value)³	86,326)	69,226)	37,349)	25,816)	24,297)
Total equity	86,326)	69,226)	37,349)	25,816)	24,297)
Add: Current maturities of long-term debt (book value)	501)	506)	450)	—)	60)
Add: Long-term debt, less current maturities (book value)	12,664)	16,941)	4,633)	5,099)	5,035)
Total equity and debt	99,491)	86,673)	42,432)	30,915)	29,392)
Less: Cash and cash equivalents	2,051)	2,567)	966)	1,500)	2,502)
Less: Short-term investments	—)	149)	—)	—)	—)
Enterprise value (EV)	97,440)	83,957)	41,466)	29,415)	26,890)

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 Data adjusted for splits and stock dividends.

² Closing price as at the filing date of Reynolds American Inc. Annual Report.

³ 2016 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 60.54 × 1,425,934,305

A consistent and significant upward trend is observed across all valuation metrics between December 31, 2012, and December 31, 2016. The growth is characterized by steady increases during the first three years, followed by a substantial acceleration in valuation and capital structure expansion starting in 2015.

Common Equity Market Value: The market value of common equity grew from 24,297 million US$ in 2012 to 86,326 million US$ by 2016. While growth was moderate between 2012 and 2013, a sharp increase occurred between 2014 and 2015, where the value rose from 37,349 million US$ to 69,226 million US$, representing an increase of approximately 85% in a single fiscal year.
Total Equity and Debt: The combined value of equity and debt mirrors the trajectory of the equity market value, rising from 29,392 million US$ in 2012 to 99,491 million US$ in 2016. A pivotal shift is noted between 2014 and 2015, during which the total equity and debt more than doubled, increasing from 42,432 million US$ to 86,673 million US$. This suggests a significant expansion of the capital base or a major corporate transaction during that period.
Enterprise Value (EV): Enterprise value exhibited a strong positive correlation with both equity and debt levels, climbing from 26,890 million US$ in 2012 to 97,440 million US$ in 2016. The most aggressive growth phase occurred between 2014 and 2015, with EV increasing from 41,466 million US$ to 83,957 million US$, an increase of approximately 102%. The continued rise into 2016 indicates a sustained expansion of the overall business value.

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Reynolds American Inc. (NYSE:RAI)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)