Reynolds American Inc. (NYSE:RAI)

The share price exhibited a volatile but generally upward trend over the analyzed period. Initially, the price increased steadily from $13.25 in 2006 to $16.22 in 2008, followed by a sharp decline to $8.83 in early 2009. After this trough, there was a consistent recovery and growth phase, reaching $60.54 by 2017. This represents a substantial appreciation in market value over the eleven-year span, particularly strong gains in the later years starting from 2013 onwards.

Sales per share showed moderate growth with some fluctuations. From $8.84 in 2006, sales per share rose gradually, peaking at $11.38 in 2015 before a decline to $10.25 in 2016. In 2017, there was a partial recovery to $11.81. Overall, the increase over the period was modest, suggesting relatively stable revenue generation per share with some variability likely due to operational or market factors.

The price-to-sales (P/S) ratio mirrored the share price movements but amplified the trends. Starting at 1.5 in 2006, the ratio climbed slightly until 2008, then dropped below 1.0 in 2009 reflecting decreased market valuation during the financial downturn. From 2010 onward, the P/S ratio rose significantly, climbing from 1.24 up to 5.12 by 2017. This sharp increase indicates a growing premium placed by the market on each dollar of sales, possibly due to expectations of higher profitability, improved market position, or favorable investor sentiment.

Summary of Key Trends:

- Share price experienced initial growth, a significant dip in 2009, followed by strong recovery and substantial appreciation through 2017.

- Sales per share increased moderately but with some fluctuations, showing overall stability but limited growth.

- The P/S ratio fluctuated in line with earlier share price volatility but then rose markedly after 2010, indicating increased market valuation relative to sales.

- The divergence between sales per share growth and share price increase after 2010 suggests market optimism beyond revenue growth alone.