Stock Analysis on Net

Reynolds American Inc. (NYSE:RAI)

This company has been moved to the archive! The financial data has not been updated since May 3, 2017.

Enterprise Value to EBITDA (EV/EBITDA)

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Reynolds American Inc., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Net income 6,073 3,253 1,470 1,718 1,272
Less: Income from discontinued operations, net of tax 25
Add: Income tax expense 3,618 3,131 817 1,023 681
Earnings before tax (EBT) 9,691 6,384 2,262 2,741 1,953
Add: Interest and debt expense 626 570 286 259 234
Earnings before interest and tax (EBIT) 10,317 6,954 2,548 3,000 2,187
Add: Depreciation and amortization expense 123 122 106 103 131
Earnings before interest, tax, depreciation and amortization (EBITDA) 10,440 7,076 2,654 3,103 2,318

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).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Reynolds American Inc. EBITDA increased from 2014 to 2015 and from 2015 to 2016.

Enterprise Value to EBITDA Ratio, Current

Reynolds American Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 103,094
Earnings before interest, tax, depreciation and amortization (EBITDA) 10,440
Valuation Ratio
EV/EBITDA 9.87
Benchmarks
EV/EBITDA, Competitors1
Coca-Cola Co. 18.82
Mondelēz International Inc. 13.53
PepsiCo Inc. 17.39

Based on: 10-K (reporting date: 2016-12-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

Reynolds American Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 97,440 83,957 41,466 29,415 26,890
Earnings before interest, tax, depreciation and amortization (EBITDA)2 10,440 7,076 2,654 3,103 2,318
Valuation Ratio
EV/EBITDA3 9.33 11.87 15.62 9.48 11.60
Benchmarks
EV/EBITDA, Competitors4
Coca-Cola Co.
Mondelēz International Inc.
PepsiCo Inc.

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).

1 See details »

2 See details »

3 2016 Calculation
EV/EBITDA = EV ÷ EBITDA
= 97,440 ÷ 10,440 = 9.33

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Reynolds American Inc. EV/EBITDA ratio decreased from 2014 to 2015 and from 2015 to 2016.