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)

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

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)

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

Equity Trends: There is a consistent growth in common equity (market value) and total equity over the five-year period. The values increased from 24,297 million US dollars in 2012 to 86,326 million US dollars in 2016, indicating a significant strengthening of the company's equity base by more than threefold.
Total Equity and Debt: Total equity and debt figures follow a similar upward trend, rising from 29,392 million US dollars in 2012 to 99,491 million US dollars in 2016. This suggests an increase in both financing through equity and debt, with the total capital structure nearly tripling over the period.
Enterprise Value (EV): Enterprise value also shows a strong upward trajectory, increasing from 26,890 million US dollars in 2012 to 97,440 million US dollars in 2016. This reflects an appreciation in the overall market valuation of the company, consistent with the increases in equity and total capital.
Summary of Capital Growth: Over the span of five years, all key financial metrics related to capitalization exhibit robust growth. The market capitalization and equity show accelerated growth particularly after 2014. The parallel increase in debt alongside equity indicates the company has expanded its financing sources to support growth or strategic initiatives. The increase in enterprise value aligns with these trends, suggesting positive market perception and valuation improvements.

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Reynolds American Inc. (NYSE:RAI)

Enterprise Value (EV)