Price to Book Value (P/BV)
since 2005
Calculation
Reynolds American Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Shareholders’ equity1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 9, 2017 | 3.98 | = | 60.54 | ÷ | 15.23 | 15.23 | = | 21,711 | ÷ | 1,425,934,305 | |
| Feb 11, 2016 | 3.79 | = | 48.50 | ÷ | 12.79 | 12.79 | = | 18,252 | ÷ | 1,427,341,341 | |
| Feb 10, 2015 | 8.26 | = | 35.15 | ÷ | 4.26 | 4.26 | = | 4,522 | ÷ | 1,062,567,026 | |
| Feb 11, 2014 | 5.00 | = | 24.04 | ÷ | 4.81 | 4.81 | = | 5,167 | ÷ | 1,073,894,304 | |
| Feb 12, 2013 | 4.62 | = | 21.97 | ÷ | 4.75 | 4.75 | = | 5,257 | ÷ | 1,105,896,384 | |
| Feb 15, 2012 | 3.72 | = | 20.19 | ÷ | 5.42 | 5.42 | = | 6,251 | ÷ | 1,152,284,476 | |
| Feb 23, 2011 | 3.06 | = | 17.11 | ÷ | 5.58 | 5.58 | = | 6,510 | ÷ | 1,166,101,052 | |
| Feb 19, 2010 | 2.36 | = | 13.17 | ÷ | 5.57 | 5.57 | = | 6,498 | ÷ | 1,165,765,344 | |
| Feb 23, 2009 | 1.65 | = | 8.83 | ÷ | 5.35 | 5.35 | = | 6,237 | ÷ | 1,165,835,472 | |
| Feb 27, 2008 | 2.56 | = | 16.22 | ÷ | 6.33 | 6.33 | = | 7,466 | ÷ | 1,180,023,048 | |
| Feb 27, 2007 | 2.55 | = | 15.16 | ÷ | 5.96 | 5.96 | = | 7,043 | ÷ | 1,182,506,024 | |
| Feb 27, 2006 | 2.39 | = | 13.25 | ÷ | 5.55 | 5.55 | = | 6,553 | ÷ | 1,179,904,176 |
Based on: 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 Reynolds American Inc. Annual Report.
- Share Price
- The share price exhibited a generally upward trend from 2006 to 2017, starting at $13.25 and reaching $60.54 by February 2017. A notable decline occurred in 2009 when the price dropped sharply to $8.83 from $16.22 in 2008, likely reflecting broader market conditions or company-specific challenges. Following this dip, the price recovered steadily, with significant acceleration after 2013, culminating in a rapid increase between 2014 and 2017.
- Book Value Per Share (BVPS)
- Book value per share demonstrated moderate fluctuations during the period. It began at $5.55 in 2006, peaking slightly in 2008 at $6.33 before declining to $4.26 by 2015. A substantial increase occurred from 2015 onwards, with BVPS nearly tripling to $15.23 in 2017, indicating a strong improvement in the company’s net asset base relative to outstanding shares in the latter years.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio moved within a range that indicated varying market perceptions relative to the book value. Initially around 2.39 in 2006, it dipped to its lowest point of 1.65 in 2009 coinciding with the share price drop, suggesting undervaluation or decreased investor confidence. Subsequently, the ratio climbed noticeably, peaking at 8.26 in 2015, which points to heightened market expectations or possibly an overvaluation relative to book value. The ratio declined to just under 4 by 2017, reflecting a moderation in price relative to book value.
- Overall Insights
- The financial data reveal resilience and recovery in the company’s market value after the 2008-2009 downturn, with the share price increasing significantly in the subsequent years. Growth in book value per share towards the end of the analysed period supports the improved valuation, although the fluctuating and high P/BV ratio in mid-2010s suggests varying investor sentiment and potential periods of overvaluation. The alignment of rising share price with increasing BVPS in later years indicates strengthening fundamentals contributing to investor confidence.
Comparison to Competitors
Reynolds American Inc., P/BV, long-term trends, comparison to competitors
| Reynolds American Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Feb 9, 2017 | 3.98 | 7.78 | 2.75 | 13.73 | — |
| Feb 11, 2016 | 3.79 | 7.48 | 2.23 | 11.75 | — |
| Feb 10, 2015 | 8.26 | 6.06 | 2.20 | 8.52 | — |
| Feb 11, 2014 | 5.00 | 5.06 | 1.78 | 4.90 | — |
| Feb 12, 2013 | 4.62 | 5.23 | 1.46 | 5.22 | — |
| Feb 15, 2012 | 3.72 | 4.95 | 1.90 | 4.83 | 624.24 |
| Feb 23, 2011 | 3.06 | 4.73 | 1.55 | 4.75 | 31.91 |
| Feb 19, 2010 | 2.36 | 4.90 | 1.65 | 5.83 | 16.12 |
| Feb 23, 2009 | 1.65 | 4.64 | 1.51 | 6.71 | 9.14 |
| Feb 27, 2008 | 2.56 | 6.36 | 1.77 | 6.67 | — |
| Feb 27, 2007 | 2.55 | 6.51 | 1.86 | 6.89 | — |
| Feb 27, 2006 | 2.39 | 6.08 | 1.72 | 6.92 | — |
Based on: 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 (Food, Beverage & Tobacco)
Reynolds American Inc., P/BV, long-term trends, comparison to sector (food, beverage & tobacco)
| Reynolds American Inc. | Food, Beverage & Tobacco | |
|---|---|---|
| Feb 9, 2017 | 3.98 | 12.01 |
| Feb 11, 2016 | 3.79 | 10.24 |
| Feb 10, 2015 | 8.26 | 8.30 |
| Feb 11, 2014 | 5.00 | 5.72 |
| Feb 12, 2013 | 4.62 | 5.83 |
| Feb 15, 2012 | 3.72 | 5.32 |
| Feb 23, 2011 | 3.06 | 4.53 |
| Feb 19, 2010 | 2.36 | 4.84 |
| Feb 23, 2009 | 1.65 | 4.47 |
| Feb 27, 2008 | 2.56 | 4.55 |
| Feb 27, 2007 | 2.55 | 4.42 |
| Feb 27, 2006 | 2.39 | 4.14 |
Based on: 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 (Consumer Staples)
Reynolds American Inc., P/BV, long-term trends, comparison to industry (consumer staples)
| Reynolds American Inc. | Consumer Staples | |
|---|---|---|
| Feb 9, 2017 | 3.98 | 5.35 |
| Feb 11, 2016 | 3.79 | 5.06 |
| Feb 10, 2015 | 8.26 | 4.55 |
| Feb 11, 2014 | 5.00 | 4.08 |
| Feb 12, 2013 | 4.62 | 3.89 |
| Feb 15, 2012 | 3.72 | 3.50 |
| Feb 23, 2011 | 3.06 | 3.45 |
| Feb 19, 2010 | 2.36 | 3.38 |
| Feb 23, 2009 | 1.65 | 3.48 |
| Feb 27, 2008 | 2.56 | 3.56 |
| Feb 27, 2007 | 2.55 | 3.66 |
| Feb 27, 2006 | 2.39 | 4.47 |
Based on: 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).