Price to Book Value (P/BV)
since 2005
Calculation
Raytheon Co., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Total Raytheon Company stockholders’ equity1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 12, 2020 | 5.23 | = | 229.76 | ÷ | 43.90 | 43.90 | = | 12,223 | ÷ | 278,441,000 | |
| Feb 13, 2019 | 4.45 | = | 180.94 | ÷ | 40.65 | 40.65 | = | 11,472 | ÷ | 282,239,000 | |
| Feb 14, 2018 | 6.16 | = | 212.58 | ÷ | 34.53 | 34.53 | = | 9,963 | ÷ | 288,506,000 | |
| Feb 15, 2017 | 4.42 | = | 151.96 | ÷ | 34.37 | 34.37 | = | 10,066 | ÷ | 292,880,000 | |
| Feb 10, 2016 | 3.74 | = | 126.57 | ÷ | 33.87 | 33.87 | = | 10,128 | ÷ | 298,998,000 | |
| Feb 11, 2015 | 3.46 | = | 107.15 | ÷ | 30.99 | 30.99 | = | 9,525 | ÷ | 307,323,000 | |
| Feb 11, 2014 | 2.69 | = | 94.29 | ÷ | 35.09 | 35.09 | = | 11,035 | ÷ | 314,509,000 | |
| Feb 13, 2013 | 2.19 | = | 53.97 | ÷ | 24.59 | 24.59 | = | 8,026 | ÷ | 326,355,000 | |
| Feb 22, 2012 | 2.09 | = | 50.41 | ÷ | 24.07 | 24.07 | = | 8,181 | ÷ | 339,876,000 | |
| Feb 23, 2011 | 1.87 | = | 50.83 | ÷ | 27.12 | 27.12 | = | 9,754 | ÷ | 359,694,000 | |
| Feb 24, 2010 | 2.17 | = | 56.17 | ÷ | 25.92 | 25.92 | = | 9,827 | ÷ | 379,083,000 | |
| Feb 25, 2009 | 1.89 | = | 43.02 | ÷ | 22.71 | 22.71 | = | 9,087 | ÷ | 400,119,000 | |
| Feb 27, 2008 | 2.26 | = | 66.42 | ÷ | 29.41 | 29.41 | = | 12,542 | ÷ | 426,386,000 | |
| Feb 22, 2007 | 2.22 | = | 55.13 | ÷ | 24.88 | 24.88 | = | 11,101 | ÷ | 446,193,000 | |
| Mar 2, 2006 | 1.83 | = | 43.98 | ÷ | 24.01 | 24.01 | = | 10,709 | ÷ | 446,115,000 |
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.
The analysis of the Price to Book Value (P/BV) ratio reveals a significant shift in market valuation over the period from 2006 to 2020. The ratio evolved from a period of relative stability into a phase of aggressive expansion, indicating a growing premium that investors were willing to pay over the company's accounting value.
- Early Stability Period (2006–2013)
- Between 2006 and 2013, the P/BV ratio remained within a narrow range, fluctuating between a minimum of 1.83 and a maximum of 2.26. During this interval, the share price and book value per share moved in relative tandem, suggesting a consistent market valuation based on tangible assets.
- Rapid Valuation Expansion (2014–2018)
- A distinct upward trajectory began in 2014, with the P/BV ratio rising from 2.69 to a peak of 6.16 by February 2018. This period is characterized by a decoupling of the share price from the book value, as the market price increased at a significantly faster rate than the growth of the book value per share.
- Recent Volatility and Recovery (2019–2020)
- Following the 2018 peak, the P/BV ratio experienced a sharp correction to 4.45 in 2019, coinciding with a decrease in share price. However, a subsequent recovery is observed by 2020, where the ratio climbed back to 5.23, driven by the share price reaching a period high of 229.76 US$.
The overall trend indicates that while the book value per share grew steadily from 24.01 US$ in 2006 to 43.90 US$ in 2020, the share price grew at a disproportionate rate. This resulted in the P/BV ratio nearly tripling over the fifteen-year period, reflecting a transition toward a valuation model driven more by intangible assets, future growth expectations, or market sentiment than by net asset value.
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Comparison to Competitors
Raytheon Co., P/BV, long-term trends, comparison to competitors
| Raytheon Co. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Feb 12, 2020 | 5.23 | — | 5.16 | 2.48 | 3.66 | 6.97 | 39.60 | 3.24 |
| Feb 13, 2019 | 4.45 | 674.83 | 5.44 | 2.12 | 3.00 | 5.96 | 61.11 | 2.71 |
| Feb 14, 2018 | 6.16 | 569.92 | 6.98 | 2.06 | 1.96 | 6.44 | — | 3.38 |
| Feb 15, 2017 | 4.42 | 122.80 | 4.42 | 2.19 | 3.47 | 4.79 | 49.61 | 3.22 |
| Feb 10, 2016 | 3.74 | 12.17 | 2.56 | 1.72 | 2.79 | 4.35 | 21.37 | 2.59 |
| Feb 11, 2015 | 3.46 | 12.04 | 3.09 | 2.13 | 2.04 | 4.63 | 17.92 | 3.49 |
| Feb 11, 2014 | 2.69 | 6.50 | 2.96 | 2.15 | 1.96 | 4.25 | 10.65 | 3.14 |
| Feb 13, 2013 | 2.19 | 9.78 | 3.57 | 1.94 | 1.95 | 4.24 | 727.88 | 3.18 |
| Feb 22, 2012 | 2.09 | 16.10 | 5.78 | 2.32 | 1.75 | 4.31 | 28.67 | 3.48 |
| Feb 23, 2011 | 1.87 | 19.33 | 6.02 | 2.47 | 1.86 | 4.26 | 7.56 | 3.65 |
| Feb 24, 2010 | 2.17 | 20.59 | 4.16 | 1.67 | 1.47 | 3.27 | 7.00 | 3.12 |
| Feb 25, 2009 | 1.89 | — | 2.63 | 0.95 | 1.10 | 3.38 | 9.51 | 2.82 |
| Feb 27, 2008 | 2.26 | 7.24 | 5.00 | 2.28 | 2.97 | 4.52 | 4.38 | 3.28 |
| Feb 22, 2007 | 2.22 | 15.15 | 6.33 | 2.88 | 3.17 | 3.94 | 6.23 | 3.92 |
| Mar 2, 2006 | 1.83 | 5.26 | 5.81 | 2.73 | 3.15 | 3.05 | 4.05 | 3.39 |
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)
Raytheon Co., P/BV, long-term trends, comparison to sector (capital goods)
| Raytheon Co. | Capital Goods | |
|---|---|---|
| Feb 12, 2020 | 5.23 | 6.91 |
| Feb 13, 2019 | 4.45 | 6.11 |
| Feb 14, 2018 | 6.16 | 5.42 |
| Feb 15, 2017 | 4.42 | 4.64 |
| Feb 10, 2016 | 3.74 | 3.45 |
| Feb 11, 2015 | 3.46 | 3.17 |
| Feb 11, 2014 | 2.69 | 2.85 |
| Feb 13, 2013 | 2.19 | 2.77 |
| Feb 22, 2012 | 2.09 | 2.89 |
| Feb 23, 2011 | 1.87 | 2.90 |
| Feb 24, 2010 | 2.17 | 2.29 |
| Feb 25, 2009 | 1.89 | 1.86 |
| Feb 27, 2008 | 2.26 | 3.46 |
| Feb 22, 2007 | 2.22 | 3.91 |
| Mar 2, 2006 | 1.83 | 3.47 |
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 Industry (Industrials)
Raytheon Co., P/BV, long-term trends, comparison to industry (industrials)
| Raytheon Co. | Industrials | |
|---|---|---|
| Feb 12, 2020 | 5.23 | 6.28 |
| Feb 13, 2019 | 4.45 | 5.96 |
| Feb 14, 2018 | 6.16 | 5.37 |
| Feb 15, 2017 | 4.42 | 4.89 |
| Feb 10, 2016 | 3.74 | 3.68 |
| Feb 11, 2015 | 3.46 | 3.70 |
| Feb 11, 2014 | 2.69 | 3.14 |
| Feb 13, 2013 | 2.19 | 3.06 |
| Feb 22, 2012 | 2.09 | 3.09 |
| Feb 23, 2011 | 1.87 | 3.05 |
| Feb 24, 2010 | 2.17 | 2.43 |
| Feb 25, 2009 | 1.89 | 2.01 |
| Feb 27, 2008 | 2.26 | 3.45 |
| Feb 22, 2007 | 2.22 | 3.75 |
| Mar 2, 2006 | 1.83 | 3.95 |
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).