Stock Analysis on Net

Raytheon Co. (NYSE:RTN)

$22.49

This company has been moved to the archive! The financial data has not been updated since February 12, 2020.

Price to Book Value (P/BV)
since 2005

Microsoft Excel

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Calculation

Raytheon Co., P/BV, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 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), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Raytheon Co. Annual Report.


Share Price Trend
The share price exhibited an overall upward trend over the analyzed period. Starting at $43.98 in early 2006, it increased steadily to a peak of $229.76 by early 2020. There were some fluctuations, notably a decline from $66.42 in 2008 to $43.02 in 2009, likely reflecting broader market conditions. Afterward, the price recovered and accelerated in growth, surpassing $200 around 2018, demonstrating strong market confidence or company performance in recent years.
Book Value Per Share (BVPS) Trend
Book value per share showed moderate growth throughout the period. It began at $24.01 in 2006 and experienced slight fluctuations, including a dip in 2009 back to $22.71. Post-2009, BVPS gradually increased reaching $43.9 by 2020. This indicates an improvement in the company's net asset value per share over time, with some periods of stagnation or minor decline.
Price-to-Book Value (P/BV) Ratio Trend
The P/BV ratio demonstrated significant variation, generally trending upward from 1.83 in 2006 to a high of 6.16 in 2018, before moderating slightly to 5.23 by 2020. The ratio increased notably starting from 2013, correlating with the accelerated rise in the share price relative to BVPS. This suggests the market valuation of the company's equity increasingly exceeded its book value, which may indicate higher investor expectations for future earnings or growth.
Relationship Between Metrics
The divergence between the rising share price and the more modest growth in book value per share resulted in an increasing P/BV ratio, especially pronounced after 2013. This may reflect enhanced investor sentiment, optimism about profitability, or other qualitative factors driving the share price beyond the fundamental book value. Periodic declines in the share price, such as in 2009, appear to coincide with decreases or stagnation in BVPS, but the recovery in stock price was more pronounced than the book value recovery.

Comparison to Competitors

Raytheon Co., P/BV, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 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), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Capital Goods)


Comparison to Industry (Industrials)