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).
Historical Valuation Ratios (Summary)
Reynolds American Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
- Price to earnings (P/E) ratio
- The P/E ratio shows fluctuations over the observed period. Initially, it rises from 16.46 to a peak of 25.41 by the end of 2014, indicating a growing market valuation relative to earnings. This is followed by a slight decline and stabilization around the low twenties in 2015. A significant decline is observed in early 2016, dropping to 10.73, before gradually increasing again to reach a high point of 27.97 by March 31, 2017. These variations suggest shifting investor sentiment or changes in earnings performance.
- Price to operating profit (P/OP) ratio
- The price to operating profit ratio follows a pattern similar to the P/E ratio. It increases from 9.51 at the start to 14.76 by the end of 2014, suggesting a higher valuation against operating profit. A sharp decline occurs in 2016, bottoming out at 5.56, followed by a recovery through 2016 and early 2017, ending at 15.99. This trend indicates periods of earnings pressure or market valuation adjustments based on operating profitability.
- Price to sales (P/S) ratio
- The P/S ratio exhibits a general upward trend from 2.05 in March 2013 to 5.47 by March 2017. Notable increases occur toward the end of 2014 and again in late 2015, reaching close to 5.05. After a minor dip in early 2016, the ratio rises steadily to surpass previous highs in early 2017. This consistent growth suggests increasing market valuation relative to revenue, potentially reflecting revenue growth or improved market expectations.
- Price to book value (P/BV) ratio
- The P/BV ratio demonstrates a strong increase from 4.86 in early 2013 to a peak of 8.84 in early 2015, indicating rising market valuation relative to book value. Subsequently, there is a sharp decline in mid-2015 to around 3.26 by early 2016, marking a substantial correction. Post-2016, the ratio gradually climbs again, reaching 4.24 by March 2017. This pattern may reflect changes in asset valuations or market perceptions of the company's net asset value.
Price to Earnings (P/E)
Reynolds American Inc., historical P/E calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,426,711,959 | 1,425,934,305 | 1,425,788,368 | 1,427,341,241 | 1,427,341,241 | 1,427,341,341 | 1,429,101,406 | 1,429,101,406 | 1,064,026,268 | 1,062,567,026 | 1,062,567,026 | 1,062,567,026 | 1,072,054,142 | 1,073,894,304 | 1,080,907,670 | 1,088,080,062 | 1,094,204,232 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Net income (in millions) | 780) | 851) | 861) | 796) | 3,565) | 279) | 657) | 1,928) | 389) | 148) | 467) | 492) | 363) | 292) | 457) | 461) | 508) | ||||||
| Earnings per share (EPS)2 | 2.30 | 4.26 | 3.86 | 3.71 | 4.50 | 2.28 | 2.18 | 2.05 | 1.41 | 1.38 | 1.52 | 1.51 | 1.47 | 1.60 | 1.45 | 1.40 | 1.38 | ||||||
| Share price1, 3 | 64.47 | 60.54 | 46.29 | 50.00 | 48.31 | 48.50 | 48.35 | 43.54 | 37.55 | 35.15 | 30.52 | 28.63 | 26.70 | 24.04 | 25.15 | 25.18 | 22.72 | ||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/E ratio4 | 27.97 | 14.21 | 12.00 | 13.47 | 10.73 | 21.28 | 22.13 | 21.22 | 26.71 | 25.41 | 20.09 | 18.97 | 18.20 | 15.03 | 17.37 | 17.93 | 16.46 | ||||||
| Benchmarks | |||||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||||
| Coca-Cola Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Mondelēz International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| PepsiCo Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Philip Morris International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2017 Calculation
EPS
= (Net incomeQ1 2017
+ Net incomeQ4 2016
+ Net incomeQ3 2016
+ Net incomeQ2 2016)
÷ No. shares of common stock outstanding
= (780,000,000 + 851,000,000 + 861,000,000 + 796,000,000)
÷ 1,426,711,959 = 2.30
3 Closing price as at the filing date of Reynolds American Inc. Quarterly or Annual Report.
4 Q1 2017 Calculation
P/E ratio = Share price ÷ EPS
= 64.47 ÷ 2.30 = 27.97
5 Click competitor name to see calculations.
- Share Price Trend
- The share price shows a general upward trajectory over the observed periods. It started at $22.72 in early 2013 and rose steadily through 2014 and 2015, reaching a peak of $50.00 by mid-2016. Despite a slight decline in late 2016 to approximately $46.29, the share price recovered strongly, reaching $64.47 by the first quarter of 2017.
- Earnings Per Share (EPS) Analysis
- EPS exhibited some variability but an overall increasing trend until the end of 2016. Starting at $1.38 in early 2013, EPS rose gradually, peaking notably at $4.50 in March 2016. After this peak, there was a moderate decline to $4.26 by the end of 2016, followed by a decrease to $2.30 by March 2017, indicating some volatility and a potential earnings contraction in early 2017.
- Price-to-Earnings (P/E) Ratio Insights
- The P/E ratio showed fluctuations that correspond with changes in share price and EPS. Initially, it remained relatively stable around the high teens, with a notable increase reaching 25.41 by the end of 2014. The ratio peaked at 27.97 in March 2017, despite the EPS decline, suggesting that the share price growth outpaced earnings at that time, reflecting heightened market valuation or expectations.
- Overall Observations
- The data reflect a strong appreciation in market value over the period, supported by generally rising EPS until mid-2016. The subsequent EPS decline and rising P/E ratio in early 2017 indicate a divergence between earnings performance and market valuation, which may warrant further attention regarding market sentiment or underlying fundamental changes.
Price to Operating Profit (P/OP)
Reynolds American Inc., historical P/OP calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,426,711,959 | 1,425,934,305 | 1,425,788,368 | 1,427,341,241 | 1,427,341,241 | 1,427,341,341 | 1,429,101,406 | 1,429,101,406 | 1,064,026,268 | 1,062,567,026 | 1,062,567,026 | 1,062,567,026 | 1,072,054,142 | 1,073,894,304 | 1,080,907,670 | 1,088,080,062 | 1,094,204,232 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Operating income (in millions) | 1,326) | 1,486) | 1,526) | 1,415) | 6,142) | 690) | 1,206) | 4,364) | 693) | 293) | 812) | 836) | 590) | 656) | 791) | 798) | 887) | ||||||
| Operating profit per share2 | 4.03 | 7.41 | 6.85 | 6.62 | 8.69 | 4.87 | 4.59 | 4.31 | 2.48 | 2.38 | 2.72 | 2.70 | 2.64 | 2.92 | 2.55 | 2.46 | 2.39 | ||||||
| Share price1, 3 | 64.47 | 60.54 | 46.29 | 50.00 | 48.31 | 48.50 | 48.35 | 43.54 | 37.55 | 35.15 | 30.52 | 28.63 | 26.70 | 24.04 | 25.15 | 25.18 | 22.72 | ||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/OP ratio4 | 15.99 | 8.17 | 6.75 | 7.55 | 5.56 | 9.96 | 10.54 | 10.10 | 15.17 | 14.76 | 11.21 | 10.59 | 10.10 | 8.24 | 9.88 | 10.23 | 9.51 | ||||||
| Benchmarks | |||||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||||
| Coca-Cola Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Mondelēz International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| PepsiCo Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Philip Morris International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2017 Calculation
Operating profit per share
= (Operating incomeQ1 2017
+ Operating incomeQ4 2016
+ Operating incomeQ3 2016
+ Operating incomeQ2 2016)
÷ No. shares of common stock outstanding
= (1,326,000,000 + 1,486,000,000 + 1,526,000,000 + 1,415,000,000)
÷ 1,426,711,959 = 4.03
3 Closing price as at the filing date of Reynolds American Inc. Quarterly or Annual Report.
4 Q1 2017 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 64.47 ÷ 4.03 = 15.99
5 Click competitor name to see calculations.
- Share Price Trends
- The share price demonstrated a general upward trend over the observed periods. Starting at $22.72 in March 2013, it experienced steady growth with minor fluctuations, reaching $64.47 by March 2017. Notably, there was a significant increase between June 2016 ($50.00) and December 2016 ($60.54), continuing to rise into early 2017.
- Operating Profit per Share (OPPS)
- Operating profit per share showed moderate growth initially, from $2.39 in March 2013 to about $2.92 at the end of 2013. There was a dip towards the end of 2014, with OPPS declining to $2.38 in December 2013 and slightly increasing to approximately $2.48 by March 2015. From mid-2015, a more marked increase occurred, peaking at $8.69 in March 2016, followed by some volatility through 2016 and 2017 with figures oscillating yet remaining relatively high compared to earlier years. This indicates improved operational profitability with some fluctuations in the latter periods.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio fluctuated significantly throughout the periods, indicating varying market expectations relative to operating profit. In the early years (2013 to early 2014), the ratio mostly hovered between approximately 9.5 and 11.2, suggesting a relatively stable valuation relative to operating profits. However, it peaked dramatically at 14.76 in December 2014 and again in early 2017 at 15.99. Conversely, it dropped to a low of 5.56 in March 2016, reflecting a period when operating profits had increased substantially but share price valuation was comparatively lower, possibly indicating undervaluation relative to earnings during that quarter. The ratio’s volatility suggests shifts in market sentiment and changes in perceived value relative to operational earnings over time.
- Overall Insights
- The data reveals that while the share price has shown consistent growth over the four-year period, operating profit per share has experienced more irregular movement, with a notable peak in early 2016 followed by some decline and variation. The P/OP ratio’s volatility further implies changing market dynamics and valuation, potentially driven by external factors, investment sentiment, or earnings quality. The simultaneous increase in share price and inconsistency in operating profit per share could indicate expectations of future growth or other value drivers beyond immediate operating performance.
Price to Sales (P/S)
Reynolds American Inc., historical P/S calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,426,711,959 | 1,425,934,305 | 1,425,788,368 | 1,427,341,241 | 1,427,341,241 | 1,427,341,341 | 1,429,101,406 | 1,429,101,406 | 1,064,026,268 | 1,062,567,026 | 1,062,567,026 | 1,062,567,026 | 1,072,054,142 | 1,073,894,304 | 1,080,907,670 | 1,088,080,062 | 1,094,204,232 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Net sales, includes excise taxes (in millions) | 3,931) | 4,254) | 4,330) | 4,315) | 3,947) | 4,216) | 4,381) | 3,390) | 2,897) | 3,024) | 3,202) | 3,089) | 2,781) | 2,959) | 3,107) | 3,162) | 2,738) | ||||||
| Sales per share2 | 11.80 | 11.81 | 11.79 | 11.81 | 11.16 | 10.43 | 9.58 | 8.76 | 11.48 | 11.38 | 11.32 | 11.23 | 11.20 | 11.14 | 11.16 | 11.09 | 11.07 | ||||||
| Share price1, 3 | 64.47 | 60.54 | 46.29 | 50.00 | 48.31 | 48.50 | 48.35 | 43.54 | 37.55 | 35.15 | 30.52 | 28.63 | 26.70 | 24.04 | 25.15 | 25.18 | 22.72 | ||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/S ratio4 | 5.47 | 5.12 | 3.93 | 4.23 | 4.33 | 4.65 | 5.05 | 4.97 | 3.27 | 3.09 | 2.70 | 2.55 | 2.38 | 2.16 | 2.25 | 2.27 | 2.05 | ||||||
| Benchmarks | |||||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||||
| Coca-Cola Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Mondelēz International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| PepsiCo Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Philip Morris International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2017 Calculation
Sales per share
= (Net sales, includes excise taxesQ1 2017
+ Net sales, includes excise taxesQ4 2016
+ Net sales, includes excise taxesQ3 2016
+ Net sales, includes excise taxesQ2 2016)
÷ No. shares of common stock outstanding
= (3,931,000,000 + 4,254,000,000 + 4,330,000,000 + 4,315,000,000)
÷ 1,426,711,959 = 11.80
3 Closing price as at the filing date of Reynolds American Inc. Quarterly or Annual Report.
4 Q1 2017 Calculation
P/S ratio = Share price ÷ Sales per share
= 64.47 ÷ 11.80 = 5.47
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a steady upward trajectory over the observed period. Beginning at $22.72 in the first quarter of 2013, the price rose consistently, reaching a high point of $64.47 by the first quarter of 2017. Notable increments appeared at year-end quarters, particularly in December 2014 and December 2016, indicating potential seasonal influences or favorable announcements at these times.
- Sales Per Share Analysis
- Sales per share were relatively stable in the earlier years, fluctuating narrowly around $11.1 to $11.4 from 2013 through the first quarter of 2015. A notable dip occurred in the second quarter of 2015, dropping to $8.76, before gradually recovering to previous levels by the end of 2015 and maintaining stability near $11.8 through the first quarter of 2017. This dip suggests a temporary decrease in sales effectiveness or external factors impacting sales volume or revenue recognition.
- Price-to-Sales (P/S) Ratio Evaluation
- The P/S ratio started at 2.05 in early 2013 and experienced a pronounced increase over the years, reaching 5.47 by the first quarter of 2017. This increase was particularly sharp from 2015 onward. The P/S ratio increase outpaced the growth in sales per share, implying that the market valuation accelerated more rapidly relative to sales performance. This may reflect heightened investor confidence, improved profitability expectations, or other factors elevating the market's valuation of sales revenue.
- Overall Financial Indicators Interpretation
- The combined trends indicate sustained investor optimism and increasing market valuation despite relatively stable sales per share. The divergence between sales growth and share price elevation suggests that other elements such as improved profit margins, operational efficiencies, or strategic initiatives may have contributed to enhanced perceived company value. The temporary sales dip in mid-2015 represents a short-term challenge that was effectively recovered in subsequent quarters.
Price to Book Value (P/BV)
Reynolds American Inc., historical P/BV calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,426,711,959 | 1,425,934,305 | 1,425,788,368 | 1,427,341,241 | 1,427,341,241 | 1,427,341,341 | 1,429,101,406 | 1,429,101,406 | 1,064,026,268 | 1,062,567,026 | 1,062,567,026 | 1,062,567,026 | 1,072,054,142 | 1,073,894,304 | 1,080,907,670 | 1,088,080,062 | 1,094,204,232 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Shareholders’ equity (in millions) | 21,706) | 21,711) | 21,544) | 21,400) | 21,163) | 18,252) | 18,477) | 18,326) | 4,519) | 4,522) | 4,993) | 4,895) | 5,013) | 5,167) | 5,080) | 5,096) | 5,118) | ||||||
| Book value per share (BVPS)2 | 15.21 | 15.23 | 15.11 | 14.99 | 14.83 | 12.79 | 12.93 | 12.82 | 4.25 | 4.26 | 4.70 | 4.61 | 4.68 | 4.81 | 4.70 | 4.68 | 4.68 | ||||||
| Share price1, 3 | 64.47 | 60.54 | 46.29 | 50.00 | 48.31 | 48.50 | 48.35 | 43.54 | 37.55 | 35.15 | 30.52 | 28.63 | 26.70 | 24.04 | 25.15 | 25.18 | 22.72 | ||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/BV ratio4 | 4.24 | 3.98 | 3.06 | 3.33 | 3.26 | 3.79 | 3.74 | 3.40 | 8.84 | 8.26 | 6.50 | 6.21 | 5.71 | 5.00 | 5.35 | 5.38 | 4.86 | ||||||
| Benchmarks | |||||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||||
| Coca-Cola Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Mondelēz International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| PepsiCo Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Philip Morris International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2017 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 21,706,000,000 ÷ 1,426,711,959 = 15.21
3 Closing price as at the filing date of Reynolds American Inc. Quarterly or Annual Report.
4 Q1 2017 Calculation
P/BV ratio = Share price ÷ BVPS
= 64.47 ÷ 15.21 = 4.24
5 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's share price, book value per share (BVPS), and price-to-book value ratio (P/BV) over the examined period.
- Share Price
- The share price demonstrates a consistent upward trajectory from March 2013 to March 2017. Beginning at $22.72, the price gradually increases with minor fluctuations, reaching $64.47 by March 2017. Significant increments are observed particularly from 2014 onwards, with more pronounced growth in late 2015 through early 2017. The data indicate sustained investor confidence and potential market optimism during this timeframe.
- Book Value Per Share (BVPS)
- The BVPS remains relatively stable around the $4.6 to $4.8 mark through 2013 and 2014. A marked increase occurs starting in early 2015, where the BVPS nearly triples from approximately $4.25 to the range of $12.79 to $15.23 by 2017. This trend implies a substantial strengthening in the company's underlying net asset value per share, possibly due to retained earnings growth, asset revaluation, or changes in capital structure.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio exhibits significant variability over the period. Initially, it fluctuates between approximately 4.9 and 8.8 from 2013 through 2014, peaking in late 2014. Following the sharp rise in BVPS during 2015, the P/BV ratio contracts substantially, stabilizing around the 3.0 to 4.0 range through 2016 and early 2017. This reduction suggests that the market price adjusted at a slower pace relative to growth in book value, indicating a potential correction in market valuation or an improved alignment between share price and fundamental value.
Overall, the company experienced robust growth in both market valuation and book value per share over the analyzed quarters. The initial high P/BV ratios and their subsequent moderation reflect transitions between market premium and a more balanced valuation relative to book value. These patterns may illustrate evolving market perceptions and fundamental improvements within the company spanning the four-year horizon.