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.

Common Stock Valuation Ratios (Price Multiples)

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Current Valuation Ratios

Reynolds American Inc., current price multiples

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Reynolds American Inc. Altria Group Inc. Coca-Cola Co. PepsiCo Inc. Philip Morris International Inc.
Selected Financial Data
Current share price (P)
No. shares of common stock outstanding
Growth rate (g)
 
Earnings per share (EPS)
Next year expected EPS
Operating profit per share
Sales per share
Book value per share (BVPS)
Valuation Ratios (Price Multiples)
Price to earnings (P/E)
Price to next year expected earnings
Price-earnings-growth (PEG)
Price to operating profit (P/OP)
Price to sales (P/S)
Price to book value (P/BV)

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

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Reynolds American Inc., historical price multiples

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Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Price to earnings (P/E)
Price to operating profit (P/OP)
Price to sales (P/S)
Price to book value (P/BV)

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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Reynolds American Inc. P/E ratio decreased from 2014 to 2015 and from 2015 to 2016.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Reynolds American Inc. P/OP ratio decreased from 2014 to 2015 and from 2015 to 2016.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Reynolds American Inc. P/S ratio increased from 2014 to 2015 and from 2015 to 2016.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Reynolds American Inc. P/BV ratio decreased from 2014 to 2015 but then slightly increased from 2015 to 2016.

Price to Earnings (P/E)

Reynolds American Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
No. shares of common stock outstanding1
Selected Financial Data (US$)
Net income (in millions)
Earnings per share (EPS)2
Share price1, 3
Valuation Ratio
P/E ratio4
Benchmarks
P/E Ratio, Competitors5
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 Data adjusted for splits and stock dividends.

2 2016 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= ÷ =

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

4 2016 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Reynolds American Inc. P/E ratio decreased from 2014 to 2015 and from 2015 to 2016.

Price to Operating Profit (P/OP)

Reynolds American Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
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
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 Data adjusted for splits and stock dividends.

2 2016 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= ÷ =

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

4 2016 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Reynolds American Inc. P/OP ratio decreased from 2014 to 2015 and from 2015 to 2016.

Price to Sales (P/S)

Reynolds American Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
No. shares of common stock outstanding1
Selected Financial Data (US$)
Net sales, includes excise taxes (in millions)
Sales per share2
Share price1, 3
Valuation Ratio
P/S ratio4
Benchmarks
P/S Ratio, Competitors5
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 Data adjusted for splits and stock dividends.

2 2016 Calculation
Sales per share = Net sales, includes excise taxes ÷ No. shares of common stock outstanding
= ÷ =

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

4 2016 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Reynolds American Inc. P/S ratio increased from 2014 to 2015 and from 2015 to 2016.

Price to Book Value (P/BV)

Reynolds American Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
No. shares of common stock outstanding1
Selected Financial Data (US$)
Shareholders’ equity (in millions)
Book value per share (BVPS)2
Share price1, 3
Valuation Ratio
P/BV ratio4
Benchmarks
P/BV Ratio, Competitors5
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 Data adjusted for splits and stock dividends.

2 2016 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= ÷ =

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

4 2016 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Reynolds American Inc. P/BV ratio decreased from 2014 to 2015 but then slightly increased from 2015 to 2016.