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Reynolds American (Reynolds American) Intrinsic Value: Projected FCF : $0.00 (As of May. 11, 2024)


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What is Reynolds American Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-05-11), Reynolds American's Intrinsic Value: Projected FCF is $0.00. The stock price of Reynolds American is $65.40. Therefore, Reynolds American's Price-to-Intrinsic-Value-Projected-FCF of today is 0.0.

The historical rank and industry rank for Reynolds American's Intrinsic Value: Projected FCF or its related term are showing as below:

RAI's Price-to-Projected-FCF is not ranked *
in the Tobacco Products industry.
Industry Median: 1.07
* Ranked among companies with meaningful Price-to-Projected-FCF only.

Reynolds American Intrinsic Value: Projected FCF Historical Data

The historical data trend for Reynolds American's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Reynolds American Intrinsic Value: Projected FCF Chart

Reynolds American Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.42 14.76 15.39 18.00 21.80

Reynolds American Quarterly Data
Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.05 20.37 20.77 21.80 22.99

Competitive Comparison of Reynolds American's Intrinsic Value: Projected FCF

For the Tobacco subindustry, Reynolds American's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Reynolds American's Price-to-Projected-FCF Distribution in the Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, Reynolds American's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Reynolds American's Price-to-Projected-FCF falls into.



Reynolds American Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Reynolds American's Free Cash Flow(6 year avg) = $1,313.28.

Reynolds American's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Mar17)*0.8)/Shares Outstanding (Diluted Average)
=(12.608723088515*1313.28+21706*0.8)/1429.502
=23.73

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Reynolds American  (NYSE:RAI) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Reynolds American's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=65.40/23.731050294218
=2.76

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Reynolds American Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of Reynolds American's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Reynolds American (Reynolds American) Business Description

Traded in Other Exchanges
N/A
Address
Reynolds American controls roughly one third of the U.S. cigarette market and is the second-largest domestic cigarette manufacturer behind Altria. Its brands include Camel, Pall Mall, and Newport. Reynolds also owns the Grizzly and Kodiak smokeless tobacco brands. Another subsidiary, Santa Fe Natural Tobacco, manufactures superpremium Natural American Spirit cigarettes. In 2013, Reynolds entered the electronic cigarette market with its Vuse brand, which captured a significant share of this small but growing market.
Executives
John J Zillmer director ARAMARK CORP, 1101 MARKET ST, PHILADELPHIA PA 19107
Debra Ann Crew officer: President and CEO STANLEY BLACK & DECKER, INC., 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Ronald S Rolfe director 825 8TH AVENUE, 38TH FLOOR, NEW YORK NY 10019
Nowell Lionel L Iii director 401 NORTH MAIN STREET, WINSTON-SALEM NC 27101
Holly K Koeppel director 401 NORTH MAIN STREET, WINSTON-SALEM NC 27101
Susan M. Cameron director C/O TUPPERWARE BRANDS CORP, PO BOX 2353, ORLANDO FL 32802-2353
Murray S Kessler director 714 GREEN VALLEY ROAD, GREENSBORO NC 27408
Nana Mensah director 1301 AVENUE OF THE AMERICAS, NEW YORK NY 10019
Thomas C Wajnert director 401 NORTH MAIN STREET, WINSTON SALEM NC 27102
Richard E Thornburgh director 401 N. MAIN STREET, WINSTON-SALEM NC 27101
Nicholas V Scheele director FORD MOTOR COMPANY, ONE AMERICAN ROAD, DEARBORN MI 48126
Betsy S Atkins director
Joseph P Viviano director 4351 GULF SHORE BLVD. N, 17N LERIVAGE, NAPLES FL 34103
Monteiro De Castro Antonio director BRITISH AMERICAN TOBACCO - GLOBE HOUSE, 4 TEMPLE PLACE, LONDON X0 WC2R2PG
Chain John T Jr director 401 N. MAIN ST., C/O RJ REYNOLDS TOBACCO HOLDINGS, WINSTON SALEM NC 27102

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