Rio Tinto Plc Stock Current Valuation
| RIO Stock | 4,668 25.00 0.53% |
Valuation analysis of Rio Tinto PLC helps investors to measure Rio Tinto's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. At present, Rio Tinto's Other Non Cash Items is projected to decrease significantly based on the last few years of reporting. The current year's End Period Cash Flow is expected to grow to about 10.2 B, whereas Cash And Short Term Investments are forecasted to decline to about 5.4 B. Fundamental drivers impacting Rio Tinto's valuation include:
Price Book 1.7533 | Enterprise Value 79.7 B | Enterprise Value Ebitda 4.5512 | Price Sales 1.4069 | Forward PE 8.3195 |
Overvalued
Today
Please note that Rio Tinto's price fluctuation is very steady at this time. Calculation of the real value of Rio Tinto PLC is based on 3 months time horizon. Increasing Rio Tinto's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Rio stock is determined by what a typical buyer is willing to pay for full or partial control of Rio Tinto PLC. Since Rio Tinto is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Rio Stock. However, Rio Tinto's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 4668.0 | Real 3501.0 | Hype 4673.76 | Naive 4432.81 |
The real value of Rio Stock, also known as its intrinsic value, is the underlying worth of Rio Tinto PLC Company, which is reflected in its stock price. It is based on Rio Tinto's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Rio Tinto's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Rio Tinto PLC helps investors to forecast how Rio stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Rio Tinto more accurately as focusing exclusively on Rio Tinto's fundamentals will not take into account other important factors: Rio Tinto PLC Company Current Valuation Analysis
Rio Tinto's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Rio Tinto Current Valuation | 79.74 B |
Most of Rio Tinto's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Rio Tinto PLC is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, Rio Tinto PLC has a Current Valuation of 79.74 B. This is much higher than that of the Metals & Mining sector and significantly higher than that of the Materials industry. The current valuation for all United Kingdom stocks is significantly lower than that of the firm.
Rio Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Rio Tinto's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Rio Tinto could also be used in its relative valuation, which is a method of valuing Rio Tinto by comparing valuation metrics of similar companies.Rio Tinto is currently under evaluation in current valuation category among its peers.
Rio Tinto ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Rio Tinto's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Rio Tinto's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Rio Fundamentals
| Return On Equity | 0.2 | ||||
| Return On Asset | 0.0923 | ||||
| Profit Margin | 0.20 % | ||||
| Operating Margin | 0.29 % | ||||
| Current Valuation | 79.74 B | ||||
| Shares Outstanding | 1.25 B | ||||
| Shares Owned By Insiders | 14.61 % | ||||
| Shares Owned By Institutions | 47.98 % | ||||
| Price To Book | 1.75 X | ||||
| Price To Sales | 1.41 X | ||||
| Revenue | 54.04 B | ||||
| Gross Profit | 21.3 B | ||||
| EBITDA | 21.08 B | ||||
| Net Income | 9.95 B | ||||
| Total Debt | 14.35 B | ||||
| Book Value Per Share | 34.05 X | ||||
| Cash Flow From Operations | 15.16 B | ||||
| Earnings Per Share | 5.12 X | ||||
| Target Price | 5813.24 | ||||
| Number Of Employees | 57 K | ||||
| Beta | 0.62 | ||||
| Market Capitalization | 78.77 B | ||||
| Total Asset | 103.55 B | ||||
| Retained Earnings | 38.35 B | ||||
| Working Capital | 8.77 B | ||||
| Annual Yield | 0.07 % | ||||
| Net Asset | 103.55 B | ||||
| Last Dividend Paid | 4.35 |
About Rio Tinto Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Rio Tinto PLC's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Rio Tinto using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Rio Tinto PLC based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Rio Tinto financial ratios help investors to determine whether Rio Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Rio with respect to the benefits of owning Rio Tinto security.