Microsoft Excel LibreOffice Calc

Raytheon Co. (RTN)


Enterprise Value (EV)

Difficulty: Intermediate


Current Enterprise Value (EV)

Raytheon Co., current enterprise value calculation

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Current share price (P) $178.72
No. shares of common stock outstanding 279,871,000
USD $ in millions
Common equity (market value) 50,019 
Add: Noncontrolling interests in subsidiaries (per books) — 
Total equity 50,019 
Add: Commercial paper (per books) 300 
Add: Long-term debt (per books) 4,755 
Total equity and debt 55,074 
Less: Cash and cash equivalents 3,608 
Less: Short-term investments — 
Enterprise value (EV) 51,466 

Based on: 10-K (filing date: 2019-02-13).


Historical Enterprise Value (EV)

Raytheon Co., EV calculation

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Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Share price1, 2 $180.94 $212.58 $151.96 $126.57 $107.15
No. shares of common stock outstanding1 282,239,000 288,506,000 292,880,000 298,998,000 307,323,000
USD $ in millions
Common equity (market value) 51,068  61,331  44,506  37,844  32,930 
Add: Noncontrolling interests in subsidiaries (per books) —  —  —  202  196 
Total equity 51,068  61,331  44,506  38,046  33,126 
Add: Commercial paper (per books) 300  300  —  —  — 
Add: Long-term debt (per books) 4,755  4,750  5,335  5,330  5,330 
Total equity and debt 56,123  66,381  49,841  43,376  38,456 
Less: Cash and cash equivalents 3,608  3,103  3,303  2,328  3,222 
Less: Short-term investments —  297  100  872  1,497 
Enterprise value (EV) 52,515  62,981  46,438  40,176  33,737 

Based on: 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-10), 10-K (filing date: 2015-02-11).

1 Data adjusted for splits and stock dividends.
2 Close price on the filing date of Raytheon Co.’s Annual Report.

Item Description The company
EV Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments. Raytheon Co.’s EV increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.