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).
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- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
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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), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
The analysis of the quarterly financial ratios reveals notable trends and fluctuations over the observed period.
- Price to Earnings (P/E) Ratio
- The P/E ratio demonstrates a general upward trend from 2012 to early 2015, rising from approximately 15.03 at the end of 2012 to a peak of 26.71 by mid-2015. Following this peak, there is a gradual decline until the beginning of 2016. Notably, there is a significant drop in early 2016 to around 10.73, indicating a sharp reassessment of earnings relative to price. After this drop, the ratio shows some volatility, with values oscillating between about 12 and 14, before rising sharply again to 27.97 by the first quarter of 2017. This suggests varying market sentiments towards earnings during these periods.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio follows a broadly similar trend to the P/E ratio. Starting near 10.97 at the end of 2012, it fluctuates but generally increases, reaching a high of 15.17 in mid-2015. Thereafter, it experiences a substantial decline, bottoming out around 5.56 in early 2016, indicating a considerable valuation correction relative to operating profit. Post this decline, a modest recovery is observed with the ratio rising to about 8.17 by late 2016 and further increasing to 15.99 by the first quarter of 2017.
- Price to Sales (P/S) Ratio
- The P/S ratio presents a consistent upward trajectory over the entirety of the period. Starting at 1.99 at the end of 2012, it increases steadily, peaking at 5.12 by the end of 2016 and continuing to rise to 5.47 in the first quarter of 2017. This steady increase suggests stronger market valuation relative to sales over time, reflecting investors’ growing confidence or improving sales performance.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio shows an initial rising trend from 3.85 in early 2012 to a peak of 8.84 in mid-2015. Following this peak, there is a marked decline to approximately 3.26 early in 2016, indicating a significant revaluation of the company’s book value. Subsequently, the ratio trends upward again, reaching 4.24 by the beginning of 2017. This pattern illustrates periods of strong investor valuation growth followed by correction and stabilization.
In summary, all valuation multiples exhibit growth leading up to mid-2015, followed by a pronounced decrease around early 2016, and subsequent recovery into 2017. The Price to Sales ratio, however, demonstrates the most consistent upward movement, implying an increasingly favorable market valuation relative to sales. The fluctuations in P/E, P/OP, and P/BV ratios suggest a period of market reassessment or changing expectations regarding profitability and asset values during 2015-2016.
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 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 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 | ||||||||||||||||||||||||||||
| 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), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
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
= ( + + + )
÷ =
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
= ÷ =
5 Click competitor name to see calculations.
The data reveals notable trends in the share price, earnings per share (EPS), and price-to-earnings (P/E) ratios over the course of nearly five years, from early 2012 to the first quarter of 2017.
- Share Price
- The share price displays a generally upward trajectory. Starting at $20.30 in March 2012, it experienced moderate growth with some fluctuations up to 2013 and 2014. Beginning in late 2014, the price rose more steeply, reaching a peak of $64.47 by March 2017. This consistent increase over the evaluated period indicates a rising market valuation of the company’s stock, particularly pronounced in the last two years of the dataset.
- Earnings Per Share (EPS)
- EPS data, available from the first quarter of 2013 onward, shows growth albeit with some volatility. The EPS began at $1.15 in the March 2013 quarter and steadily increased to $4.26 by December 2016, evidencing substantial improvement in profitability. However, the EPS dropped to $2.30 in March 2017, which represents a notable decline after a period of strong earnings growth. This dip could suggest either a one-time event affecting profitability or emerging challenges impacting earnings.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio exhibits considerable variability throughout the periods. Initial values in 2013 were around 15 to 20, and a general upward trend in P/E is observed through early 2015, reaching above 25. Subsequently, the ratio declines to near 10.73 by December 2016, correlating with rising EPS and share price dynamics. The final data point in March 2017 shows a sharp increase to 27.97, which combined with the reduced EPS, suggests the share price remains relatively high compared to earnings, possibly reflecting market expectations of future growth or shifts in investor sentiment.
In summary, the financial indicators demonstrate strong growth in market valuation and profitability up to late 2016, followed by increased volatility and signs of potential earnings pressure in early 2017. The sharp rise in the P/E ratio in the last quarter analyzed reflects a divergence between share price and underlying earnings performance, warranting careful monitoring of future financial results.
Price to Operating Profit (P/OP)
Reynolds American Inc., historical P/OP calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Operating income (in millions) | ||||||||||||||||||||||||||||
| Operating profit per share2 | ||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/OP ratio4 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | ||||||||||||||||||||||||||||
| 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), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
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
= ( + + + )
÷ =
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
= ÷ =
5 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends and fluctuations in the share price, operating profit per share, and the price-to-operating profit (P/OP) ratio over the observed periods.
- Share Price
- The share price demonstrates a generally upward trend from March 31, 2012, through March 31, 2017. Starting at $20.3, it experiences periodic increases with minor fluctuations. Notable growth periods occur between March 2014 ($26.7) and December 2015 ($48.5), as well as between March 2016 ($48.31) and March 2017 ($64.47). Some volatility is observed, such as a decline from June 2016 ($50) to September 2016 ($46.29), followed by a significant rebound by March 2017.
- Operating Profit per Share (OPPS)
- Operating profit per share data begins from March 31, 2013. Initially, the OPPS shows moderate growth from $2.00 in March 2013 to $2.92 in December 2013. It then stabilizes around the $2.38 to $2.72 range throughout 2014 and the first half of 2015, before a sharp increase is evident starting September 2015 ($4.31) peaking in December 2016 at $8.69. Subsequently, it decreases to $4.03 by March 2017, indicating a significant contraction in operating profitability after the peak.
- Price-to-Operating Profit Ratio (P/OP)
- The P/OP ratio exhibits considerable fluctuation and an overall decline during the early part of the period with data. Initially, the ratio decreases from 10.97 in March 2013 to a low of 8.24 in December 2013, suggesting an improvement in operating earnings relative to the share price. However, from 2014 to mid-2015, the ratio increases significantly, reaching a peak of 15.99 by March 2017. This indicates that despite an increase in operating profit per share during parts of this time, the share price appreciated at a higher rate leading to elevated valuation multiples, or alternatively, that operating profit gains did not keep pace with the increase in market price. Notably, during the peak operating profit quarter (December 2016), the P/OP ratio was at one of its lowest points (5.56), showing strong earnings relative to price at that time.
In summary, the share price of the company steadily appreciated over the period, reflecting positive market sentiment or improved investor confidence. Operating profit per share showed substantial growth, particularly from 2015 through late 2016, before contracting in early 2017. The P/OP ratio's variability suggests fluctuations in market valuation relative to operating profitability, with periods of both value compression and expansion. The relationship between these metrics underscores the importance of analyzing profitability trends alongside market valuations to interpret financial performance comprehensively.
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 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 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 | ||||||||||||||||||||||||||||
| 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), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
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 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
= ÷ =
5 Click competitor name to see calculations.
The share price exhibits a generally upward trend over the observed period, starting from $20.30 at the end of March 2012 and reaching $64.47 by the end of March 2017. There are periods of moderate fluctuation, such as between December 2013 and March 2014 when the price increased from $24.04 to $26.70. The most significant growth is observed from mid-2014 onwards, with notable increments in the last quarters of 2014 and 2015, where the price rose from $30.52 to $48.50, reflecting increased investor confidence or improved company performance.
Sales per share data are available from March 2013 onward and remain relatively stable with slight incremental changes. The values increase from around $11.06 in early 2013 to approximately $11.81 by early 2017. There is a dip observed in late 2015, where sales per share decline to around $8.76 before recovering and continuing the upward trajectory. This transient drop could indicate a short-term operational challenge that was subsequently addressed.
The Price-to-Sales (P/S) ratio follows a pattern similar to the share price, rising from approximately 1.99 in early 2013 to a peak of around 5.47 in March 2017. This increasing ratio suggests that the market valuation of the company has grown faster than sales per share, possibly reflecting heightened market expectations of future growth or profitability. The sharp increase in the P/S ratio during 2015, jumping from about 3.27 to nearly 5.05, aligns with the rise in share price despite the temporary dip in sales per share, indicating potential external factors influencing market sentiment.
Overall, the data show a consistent growth in share price accompanied by stable to moderately increasing sales per share, leading to a rising P/S ratio throughout the timeline. The spike in the P/S ratio relative to sales near the end of the period may warrant further analysis to understand the drivers behind investor valuation and whether they are supported by fundamental sales growth.
Price to Book Value (P/BV)
Reynolds American Inc., historical P/BV calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Shareholders’ equity (in millions) | ||||||||||||||||||||||||||||
| Book value per share (BVPS)2 | ||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/BV ratio4 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | ||||||||||||||||||||||||||||
| 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), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2017 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
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
= ÷ =
5 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends related to the share price, book value per share (BVPS), and the price-to-book value (P/BV) ratio over the analyzed periods.
- Share Price
- The share price demonstrates a general upward trajectory from March 2012 to March 2017. Starting at $20.30, the price exhibits some fluctuations but consistently moves higher, reaching $64.47 by March 2017. Notably, the share price increased significantly after the end of 2013, with notable accelerations in 2014 and 2015. The peak value is observed in the last recorded quarter, reflecting strong market valuation gains over the five-year period.
- Book Value Per Share (BVPS)
- The BVPS shows a mixed pattern during the initial years, declining slightly from $5.27 in March 2012 to $4.26 by December 2014. However, a substantial and abrupt increase occurs starting in the first quarter of 2015, elevating BVPS to above $12.00 and continuing to grow gradually to around $15.21 by March 2017. This sharp rise in BVPS suggests either significant improvements in net asset values or capital restructuring events occurring around early 2015. Post-2015, the BVPS stabilizes and exhibits a moderate but consistent upward trend.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio fluctuates around mid-single digits throughout the periods but reveals considerable variation in response to changes in share price and book value. Initially, the P/BV ratio ranges from approximately 3.85 to 8.84, peaking near the end of 2014. A notable decline occurs in 2015, dropping to 3.40 in March 2015 coinciding with the sharp increase in BVPS, indicating that the share price had not yet adjusted fully to the revised book value. Subsequently, the ratio remains relatively moderate, oscillating between 3.06 and 4.24 toward early 2017. This suggests a normalization of market valuation relative to book value after structural shifts in equity.
Overall, the data suggests robust share price appreciation over the five-year span, outpacing the growth in book value per share substantially. The abrupt increase in BVPS around early 2015 marked a key inflection point in the financial profile, potentially reflecting significant balance sheet changes. The P/BV ratio's variability during this period highlights market adjustments to these changes, eventually stabilizing to a more normalized range. This combination of rising share prices with elevated but steady book values and moderate valuation multiples indicates a period of market confidence and asset growth.