Name: Raytheon Co. (NYSE:RTN) | Enterprise Value (EV)
Creator: Stock Analysis on Net

Current EV
Historical EV

Raytheon Co., current enterprise value calculation

Current share price (P)	$229.76
No. shares of common stock outstanding	278,441,000
US$ in millions
Common equity (market value)¹	63,975)
Add: Noncontrolling interests in subsidiaries (per books)	—)
Total equity	63,975)
Add: Commercial paper and current portion of long-term debt (per books)	1,499)
Add: Long-term debt, excluding current portion (per books)	3,261)
Total equity and debt	68,735)
Less: Cash and cash equivalents	4,292)
Less: Short-term investments	—)
Enterprise value (EV)	64,443)

Based on: 10-K (reporting date: 2019-12-31).

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 229.76 × 278,441,000

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Raytheon Co., EV calculation

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Share price^1, 2	$229.76	$180.94	$212.58	$151.96	$126.57
No. shares of common stock outstanding¹	278,441,000	282,239,000	288,506,000	292,880,000	298,998,000
US$ in millions
Common equity (market value)³	63,975)	51,068)	61,331)	44,506)	37,844)
Add: Noncontrolling interests in subsidiaries (book value)	—)	—)	—)	—)	202)
Total equity	63,975)	51,068)	61,331)	44,506)	38,046)
Add: Commercial paper and current portion of long-term debt (book value)	1,499)	300)	300)	—)	—)
Add: Long-term debt, excluding current portion (book value)	3,261)	4,755)	4,750)	5,335)	5,330)
Total equity and debt	68,735)	56,123)	66,381)	49,841)	43,376)
Less: Cash and cash equivalents	4,292)	3,608)	3,103)	3,303)	2,328)
Less: Short-term investments	—)	—)	297)	100)	872)
Enterprise value (EV)	64,443)	52,515)	62,981)	46,438)	40,176)

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).

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of Raytheon Co. Annual Report.

³ 2019 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 229.76 × 278,441,000

The financial data for the period between 2015 and 2019 indicates a general upward trajectory in valuation, characterized by a significant growth phase, a mid-period contraction, and a subsequent recovery to peak levels.

Enterprise Value (EV) Trends: The enterprise value grew from 40,176 million USD in 2015 to a peak of 62,981 million USD in 2017. A notable decline occurred in 2018, where the value dropped to 52,515 million USD, before recovering strongly in 2019 to reach its five-year high of 64,443 million USD. This represents an overall increase of approximately 60.3% over the analyzed period.
Market Capitalization and Equity Dynamics: Common equity market value followed a pattern nearly identical to the enterprise value. Growth was consistent through 2017, reaching 61,331 million USD, followed by a decrease to 51,068 million USD in 2018, and a rebound to 63,975 million USD by the end of 2019. For the years 2016 through 2019, the market value of common equity and total equity are identical, suggesting a convergence between book and market valuations or a specific accounting treatment of equity during those years.
Analysis of Capital Structure: The relationship between total equity and debt relative to the enterprise value suggests a stable capital structure. Total equity and debt peaked in 2017 at 66,381 million USD and again in 2019 at 68,735 million USD. Because the enterprise value remains consistently close to the market value of equity, it is inferred that net debt (total debt minus cash and cash equivalents) remains a relatively small component of the total enterprise valuation.

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Raytheon Co. (NYSE:RTN)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)