Microsoft Excel LibreOffice Calc

Raytheon Co. (RTN)


Common Stock Valuation Ratios (Price Multiples)

Low level of difficulty


Current Valuation Ratios

Raytheon Co., current price multiples

Microsoft Excel LibreOffice Calc
Raytheon Co. Boeing Co. General Dynamics Corp. Lockheed Martin Corp. Northrop Grumman Corp. United Technologies Corp. Aerospace & Defense Industrials
Selected Financial Data
Current share price (P) $216.70
No. shares of common stock outstanding 278,479,000
Growth rate (g) 13.82%
 
Earnings per share (EPS) $10.45
Next year expected EPS $11.89
Operating profit per share $16.30
Sales per share $97.16
Book value per share (BVPS) $41.20
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 20.74 19.77 16.02 21.81 18.56 24.27 20.44 30.37
Price to next year expected earnings 18.23 3.03 13.73 10.59 14.88 21.70 16.70 27.75
Price-earnings-growth (PEG) 1.50 0.04 0.96 0.21 0.75 2.05 0.91 3.22
Price to operating profit (P/OP) 13.30 17.25 12.02 15.01 15.86 14.95 15.22 14.89
Price to sales (P/S) 2.23 2.04 1.48 2.05 1.99 1.92 1.97 2.09
Price to book value (P/BV) 5.26 610.01 4.57 78.95 7.32 3.33 8.64 6.86

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

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Raytheon Co., historical price multiples

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Price to earnings (P/E) 17.56 30.30 20.13 18.25 14.67
Price to operating profit (P/OP) 11.25 18.48 13.74 12.56 10.36
Price to sales (P/S) 1.89 2.42 1.85 1.63 1.44
Price to book value (P/BV) 4.45 6.16 4.42 3.74 3.46

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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Raytheon Co.’s P/E ratio increased from 2016 to 2017 but then declined significantly from 2017 to 2018.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Raytheon Co.’s P/OP ratio increased from 2016 to 2017 but then declined significantly from 2017 to 2018.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Raytheon Co.’s P/S ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Raytheon Co.’s P/BV ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.

Price to Earnings (P/E)

Raytheon Co., historical P/E calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 282,239,000 288,506,000 292,880,000 298,998,000 307,323,000
Selected Financial Data (US$)
Net income attributable to Raytheon Company (in millions) 2,909  2,024  2,211  2,074  2,244 
Earnings per share (EPS)2 10.31 7.02 7.55 6.94 7.30
Share price1, 3 180.94 212.58 151.96 126.57 107.15
Valuation Ratio
P/E ratio4 17.56 30.30 20.13 18.25 14.67
Benchmarks
P/E Ratio, Competitors5
Boeing Co. 21.87 24.68 20.50 14.89 19.15
General Dynamics Corp. 14.95 21.37 18.75 13.88 17.93
Lockheed Martin Corp. 16.88 48.70 14.14 18.36 16.86
Northrop Grumman Corp. 14.48 29.23 18.21 17.15 15.27
United Technologies Corp. 19.74 21.97 17.55 9.31 17.52
P/E Ratio, Sector
Aerospace & Defense 18.70 26.83 17.86 13.97 17.36
P/E Ratio, Industry
Industrials 28.09 28.48 22.75 23.39 18.71

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 2018 Calculation
EPS = Net income attributable to Raytheon Company ÷ No. shares of common stock outstanding
= 2,909,000,000 ÷ 282,239,000 = 10.31

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

4 2018 Calculation
P/E ratio = Share price ÷ EPS
= 180.94 ÷ 10.31 = 17.56

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Raytheon Co.’s P/E ratio increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

Price to Operating Profit (P/OP)

Raytheon Co., historical P/OP calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 282,239,000 288,506,000 292,880,000 298,998,000 307,323,000
Selected Financial Data (US$)
Operating income (in millions) 4,538  3,318  3,240  3,013  3,179 
Operating profit per share2 16.08 11.50 11.06 10.08 10.34
Share price1, 3 180.94 212.58 151.96 126.57 107.15
Valuation Ratio
P/OP ratio4 11.25 18.48 13.74 12.56 10.36
Benchmarks
P/OP Ratio, Competitors5
Boeing Co. 19.08 19.69 17.20 10.36 13.96
General Dynamics Corp. 11.22 14.90 12.86 9.85 11.68
Lockheed Martin Corp. 11.62 16.47 13.51 12.17 10.89
Northrop Grumman Corp. 12.37 17.85 12.55 11.10 9.88
United Technologies Corp. 12.16 11.53 10.86 9.71 11.15
P/OP Ratio, Sector
Aerospace & Defense 13.92 16.33 13.33 10.75 11.61
P/OP Ratio, Industry
Industrials 13.78 15.57 15.55 12.60 11.54

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 2018 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 4,538,000,000 ÷ 282,239,000 = 16.08

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

4 2018 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 180.94 ÷ 16.08 = 11.25

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Raytheon Co.’s P/OP ratio increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

Price to Sales (P/S)

Raytheon Co., historical P/S calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 282,239,000 288,506,000 292,880,000 298,998,000 307,323,000
Selected Financial Data (US$)
Net sales (in millions) 27,058  25,348  24,069  23,247  22,826 
Sales per share2 95.87 87.86 82.18 77.75 74.27
Share price1, 3 180.94 212.58 151.96 126.57 107.15
Valuation Ratio
P/S ratio4 1.89 2.42 1.85 1.63 1.44
Benchmarks
P/S Ratio, Competitors5
Boeing Co. 2.26 2.17 1.06 0.80 1.15
General Dynamics Corp. 1.38 2.01 1.77 1.31 1.47
Lockheed Martin Corp. 1.58 1.91 1.59 1.43 1.34
Northrop Grumman Corp. 1.55 2.28 1.63 1.45 1.32
United Technologies Corp. 1.56 1.67 1.55 1.26 1.67
P/S Ratio, Sector
Aerospace & Defense 1.80 2.03 1.45 1.18 1.38
P/S Ratio, Industry
Industrials 1.94 2.13 1.99 1.72 1.85

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 2018 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 27,058,000,000 ÷ 282,239,000 = 95.87

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

4 2018 Calculation
P/S ratio = Share price ÷ Sales per share
= 180.94 ÷ 95.87 = 1.89

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Raytheon Co.’s P/S ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.

Price to Book Value (P/BV)

Raytheon Co., historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 282,239,000 288,506,000 292,880,000 298,998,000 307,323,000
Selected Financial Data (US$)
Total Raytheon Company stockholders’ equity (in millions) 11,472  9,963  10,066  10,128  9,525 
Book value per share (BVPS)2 40.65 34.53 34.37 33.87 30.99
Share price1, 3 180.94 212.58 151.96 126.57 107.15
Valuation Ratio
P/BV ratio4 4.45 6.16 4.42 3.74 3.46
Benchmarks
P/BV Ratio, Competitors5
Boeing Co. 674.83 569.92 122.80 12.17 12.04
General Dynamics Corp. 4.26 5.44 5.05 3.83 3.84
Lockheed Martin Corp. 61.11 49.61 21.37 17.92
Northrop Grumman Corp. 5.71 8.36 7.62 6.18 4.37
United Technologies Corp. 2.71 3.38 3.22 2.59 3.49
P/BV Ratio, Sector
Aerospace & Defense 7.91 10.09 7.19 5.18 5.34
P/BV Ratio, Industry
Industrials 6.35 6.01 5.41 4.16 3.99

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 2018 Calculation
BVPS = Total Raytheon Company stockholders’ equity ÷ No. shares of common stock outstanding
= 11,472,000,000 ÷ 282,239,000 = 40.65

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

4 2018 Calculation
P/BV ratio = Share price ÷ BVPS
= 180.94 ÷ 40.65 = 4.45

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Raytheon Co.’s P/BV ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.