Price to Sales (P/S)
since 2005
Calculation
Reynolds American Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Net sales, includes excise taxes1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 9, 2017 | 5.12 | = | 60.54 | ÷ | 11.81 | 11.81 | = | 16,846 | ÷ | 1,425,934,305 | |
| Feb 11, 2016 | 4.73 | = | 48.50 | ÷ | 10.25 | 10.25 | = | 14,625 | ÷ | 1,427,341,341 | |
| Feb 10, 2015 | 3.09 | = | 35.15 | ÷ | 11.38 | 11.38 | = | 12,096 | ÷ | 1,062,567,026 | |
| Feb 11, 2014 | 2.16 | = | 24.04 | ÷ | 11.14 | 11.14 | = | 11,966 | ÷ | 1,073,894,304 | |
| Feb 12, 2013 | 1.99 | = | 21.97 | ÷ | 11.06 | 11.06 | = | 12,227 | ÷ | 1,105,896,384 | |
| Feb 15, 2012 | 1.84 | = | 20.19 | ÷ | 10.98 | 10.98 | = | 12,648 | ÷ | 1,152,284,476 | |
| Feb 23, 2011 | 1.55 | = | 17.11 | ÷ | 11.05 | 11.05 | = | 12,891 | ÷ | 1,166,101,052 | |
| Feb 19, 2010 | 1.24 | = | 13.17 | ÷ | 10.59 | 10.59 | = | 12,346 | ÷ | 1,165,765,344 | |
| Feb 23, 2009 | 0.96 | = | 8.83 | ÷ | 9.21 | 9.21 | = | 10,735 | ÷ | 1,165,835,472 | |
| Feb 27, 2008 | 1.73 | = | 16.22 | ÷ | 9.36 | 9.36 | = | 11,049 | ÷ | 1,180,023,048 | |
| Feb 27, 2007 | 1.69 | = | 15.16 | ÷ | 8.99 | 8.99 | = | 10,634 | ÷ | 1,182,506,024 | |
| Feb 27, 2006 | 1.50 | = | 13.25 | ÷ | 8.84 | 8.84 | = | 10,431 | ÷ | 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.
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.
Comparison to Competitors
Reynolds American Inc., P/S, long-term trends, comparison to competitors
| Reynolds American Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Feb 9, 2017 | 5.12 | 4.28 | 2.67 | 2.43 | 5.96 |
| Feb 11, 2016 | 4.73 | 4.32 | 2.11 | 2.22 | 5.28 |
| Feb 10, 2015 | 3.09 | 3.99 | 1.78 | 2.23 | 4.32 |
| Feb 11, 2014 | 2.16 | 3.58 | 1.63 | 1.79 | 4.01 |
| Feb 12, 2013 | 1.99 | 3.57 | 1.35 | 1.78 | 4.91 |
| Feb 15, 2012 | 1.84 | 3.36 | 1.23 | 1.50 | 4.60 |
| Feb 23, 2011 | 1.55 | 4.18 | 1.13 | 1.74 | 4.11 |
| Feb 19, 2010 | 1.24 | 3.92 | 1.06 | 2.27 | 3.68 |
| Feb 23, 2009 | 0.96 | 2.98 | 0.79 | 1.88 | 2.67 |
| Feb 27, 2008 | 1.73 | 4.79 | 1.30 | 2.91 | — |
| Feb 27, 2007 | 1.69 | 4.57 | 1.55 | 3.01 | — |
| Feb 27, 2006 | 1.50 | 4.30 | 1.50 | 3.03 | — |
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/S, long-term trends, comparison to sector (food, beverage & tobacco)
| Reynolds American Inc. | Food, Beverage & Tobacco | |
|---|---|---|
| Feb 9, 2017 | 5.12 | 3.56 |
| Feb 11, 2016 | 4.73 | 3.27 |
| Feb 10, 2015 | 3.09 | 2.95 |
| Feb 11, 2014 | 2.16 | 2.61 |
| Feb 12, 2013 | 1.99 | 2.72 |
| Feb 15, 2012 | 1.84 | 2.35 |
| Feb 23, 2011 | 1.55 | 2.45 |
| Feb 19, 2010 | 1.24 | 2.54 |
| Feb 23, 2009 | 0.96 | 1.95 |
| Feb 27, 2008 | 1.73 | 2.86 |
| Feb 27, 2007 | 1.69 | 2.88 |
| Feb 27, 2006 | 1.50 | 2.77 |
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/S, long-term trends, comparison to industry (consumer staples)
| Reynolds American Inc. | Consumer Staples | |
|---|---|---|
| Feb 9, 2017 | 5.12 | 1.26 |
| Feb 11, 2016 | 4.73 | 1.23 |
| Feb 10, 2015 | 3.09 | 1.18 |
| Feb 11, 2014 | 2.16 | 1.14 |
| Feb 12, 2013 | 1.99 | 1.10 |
| Feb 15, 2012 | 1.84 | 1.03 |
| Feb 23, 2011 | 1.55 | 1.08 |
| Feb 19, 2010 | 1.24 | 1.01 |
| Feb 23, 2009 | 0.96 | 1.04 |
| Feb 27, 2008 | 1.73 | 1.20 |
| Feb 27, 2007 | 1.69 | 1.25 |
| Feb 27, 2006 | 1.50 | 1.26 |
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).