Price to Earnings (P/E)
since 2005
Calculation
Raytheon Co., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income attributable to Raytheon Company1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 12, 2020 | 19.14 | = | 229.76 | ÷ | 12.01 | 12.01 | = | 3,343 | ÷ | 278,441,000 | |
| Feb 13, 2019 | 17.56 | = | 180.94 | ÷ | 10.31 | 10.31 | = | 2,909 | ÷ | 282,239,000 | |
| Feb 14, 2018 | 30.30 | = | 212.58 | ÷ | 7.02 | 7.02 | = | 2,024 | ÷ | 288,506,000 | |
| Feb 15, 2017 | 20.13 | = | 151.96 | ÷ | 7.55 | 7.55 | = | 2,211 | ÷ | 292,880,000 | |
| Feb 10, 2016 | 18.25 | = | 126.57 | ÷ | 6.94 | 6.94 | = | 2,074 | ÷ | 298,998,000 | |
| Feb 11, 2015 | 14.67 | = | 107.15 | ÷ | 7.30 | 7.30 | = | 2,244 | ÷ | 307,323,000 | |
| Feb 11, 2014 | 14.86 | = | 94.29 | ÷ | 6.35 | 6.35 | = | 1,996 | ÷ | 314,509,000 | |
| Feb 13, 2013 | 9.33 | = | 53.97 | ÷ | 5.79 | 5.79 | = | 1,888 | ÷ | 326,355,000 | |
| Feb 22, 2012 | 9.18 | = | 50.41 | ÷ | 5.49 | 5.49 | = | 1,866 | ÷ | 339,876,000 | |
| Feb 23, 2011 | 9.94 | = | 50.83 | ÷ | 5.12 | 5.12 | = | 1,840 | ÷ | 359,694,000 | |
| Feb 24, 2010 | 11.00 | = | 56.17 | ÷ | 5.10 | 5.10 | = | 1,935 | ÷ | 379,083,000 | |
| Feb 25, 2009 | 10.29 | = | 43.02 | ÷ | 4.18 | 4.18 | = | 1,672 | ÷ | 400,119,000 | |
| Feb 27, 2008 | 10.99 | = | 66.42 | ÷ | 6.05 | 6.05 | = | 2,578 | ÷ | 426,386,000 | |
| Feb 22, 2007 | 19.17 | = | 55.13 | ÷ | 2.88 | 2.88 | = | 1,283 | ÷ | 446,193,000 | |
| Mar 2, 2006 | 22.53 | = | 43.98 | ÷ | 1.95 | 1.95 | = | 871 | ÷ | 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.
- Share Price
- Over the analyzed period, the share price demonstrated significant volatility with an overall upward trend. Initial growth was observed from 43.98 US$ in early 2006 to 66.42 US$ by early 2008, followed by a notable decline to 43.02 US$ in early 2009. Subsequently, the share price recovered and increased steadily, reaching a peak of 212.58 US$ in early 2018. Although there was a decline to 180.94 US$ in early 2019, the price rebounded to the highest recorded value of 229.76 US$ by early 2020.
- Earnings per Share (EPS)
- Earnings per share displayed a generally upward trajectory throughout the period. After starting at 1.95 US$ in 2006, EPS rose sharply to 6.05 US$ by 2008, experiencing a temporary decrease in 2009 to 4.18 US$. From 2010 onward, EPS grew steadily, reaching 12.01 US$ by 2020. This consistent increase suggests improved profitability and earnings capacity.
- Price-to-Earnings (P/E) Ratio
- The price-to-earnings ratio exhibited considerable fluctuations over the years. Initially, it declined from 22.53 in 2006 to a low near 9.18 by 2012, indicating a period where earnings growth outpaced share price appreciation, or possibly a market undervaluation. From 2013, the P/E ratio generally increased, peaking sharply at 30.3 in 2018, which may reflect heightened market expectations or premium valuation relative to earnings. A subsequent decrease and stabilization around 19 in 2019 and 2020 indicate a moderation of market valuation relative to earnings.
Comparison to Competitors
Raytheon Co., P/E, 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 | 19.14 | — | 12.36 | 18.06 | — | 20.97 | 19.87 | 24.41 |
| Feb 13, 2019 | 17.56 | 21.87 | 12.42 | 15.92 | — | 16.02 | 16.88 | 19.74 |
| Feb 14, 2018 | 30.30 | 24.68 | 126.80 | 11.90 | — | 67.20 | 48.70 | 21.97 |
| Feb 15, 2017 | 20.13 | 20.50 | — | 16.96 | 32.22 | 19.29 | 14.14 | 17.55 |
| Feb 10, 2016 | 18.25 | 14.89 | 18.07 | 13.17 | — | 16.70 | 18.36 | 9.31 |
| Feb 11, 2015 | 14.67 | 19.15 | 14.01 | 18.73 | 17.17 | 19.27 | 16.86 | 17.52 |
| Feb 11, 2014 | 14.86 | 21.10 | 16.25 | 19.35 | 19.59 | 18.91 | 17.56 | 17.51 |
| Feb 13, 2013 | 9.33 | 14.71 | 11.02 | 23.99 | 17.57 | 18.78 | 10.34 | 16.07 |
| Feb 22, 2012 | 9.18 | 14.09 | 15.11 | 12.83 | 15.52 | 22.54 | 10.81 | 15.29 |
| Feb 23, 2011 | 9.94 | 16.17 | 24.14 | 19.59 | 19.49 | 22.48 | 9.58 | 17.84 |
| Feb 24, 2010 | 11.00 | 33.40 | 40.66 | 29.60 | 16.09 | 13.44 | 9.56 | 16.33 |
| Feb 25, 2009 | 10.29 | 11.63 | 4.51 | 5.65 | 6.62 | 8.71 | 8.47 | 9.57 |
| Feb 27, 2008 | 10.99 | 15.99 | 12.54 | 11.89 | 15.45 | 17.07 | 14.15 | 16.61 |
| Feb 22, 2007 | 19.17 | 32.40 | 12.28 | 12.47 | 17.11 | 18.37 | 16.95 | 18.16 |
| Mar 2, 2006 | 22.53 | 22.62 | 17.17 | 12.82 | 21.07 | 20.71 | 17.45 | 18.76 |
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/E, long-term trends, comparison to sector (capital goods)
| Raytheon Co. | Capital Goods | |
|---|---|---|
| Feb 12, 2020 | 19.14 | 39.03 |
| Feb 13, 2019 | 17.56 | 56.00 |
| Feb 14, 2018 | 30.30 | 55.16 |
| Feb 15, 2017 | 20.13 | 23.62 |
| Feb 10, 2016 | 18.25 | 33.10 |
| Feb 11, 2015 | 14.67 | 17.47 |
| Feb 11, 2014 | 14.86 | 18.85 |
| Feb 13, 2013 | 9.33 | 15.74 |
| Feb 22, 2012 | 9.18 | 15.20 |
| Feb 23, 2011 | 9.94 | 18.46 |
| Feb 24, 2010 | 11.00 | 17.22 |
| Feb 25, 2009 | 10.29 | 7.48 |
| Feb 27, 2008 | 10.99 | 15.28 |
| Feb 22, 2007 | 19.17 | 17.63 |
| Mar 2, 2006 | 22.53 | 20.11 |
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/E, long-term trends, comparison to industry (industrials)
| Raytheon Co. | Industrials | |
|---|---|---|
| Feb 12, 2020 | 19.14 | 43.95 |
| Feb 13, 2019 | 17.56 | 33.70 |
| Feb 14, 2018 | 30.30 | 29.83 |
| Feb 15, 2017 | 20.13 | 22.92 |
| Feb 10, 2016 | 18.25 | 22.89 |
| Feb 11, 2015 | 14.67 | 18.79 |
| Feb 11, 2014 | 14.86 | 19.13 |
| Feb 13, 2013 | 9.33 | 17.77 |
| Feb 22, 2012 | 9.18 | 15.75 |
| Feb 23, 2011 | 9.94 | 18.72 |
| Feb 24, 2010 | 11.00 | 19.17 |
| Feb 25, 2009 | 10.29 | 9.73 |
| Feb 27, 2008 | 10.99 | 16.93 |
| Feb 22, 2007 | 19.17 | 11.65 |
| Mar 2, 2006 | 22.53 | 50.62 |
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).