RIO Valuation

Rio Tinto PLC

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61.950

-0.38(-0.610%)1D

Overview
Forecast
Valuation
Earnings

RIO Relative Valuation

RIO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, RIO is overvalued; if below, it's undervalued.

Historical Valuation

Rio Tinto PLC (RIO) is now in the Undervalued zone, suggesting that its current forward PE ratio of 10.41 is considered Undervalued compared with the five-year average of 8.00. The fair price of Rio Tinto PLC (RIO) is between 66.05 to 84.54 according to relative valuation methord. Compared to the current price of 62.33 USD , Rio Tinto PLC is Undervalued By 5.63%.

Relative Value

Fair Zone

66.05-84.54

Current Price：62.33

5.63%

Undervalued

10.30

Trailing

Forward

5.46

EV/EBITDA

Rio Tinto PLC. (RIO) has a current EV/EBITDA of 5.46. The 5-year average EV/EBITDA is 4.51. The thresholds are as follows: Strongly Undervalued below 3.33, Undervalued between 3.33 and 3.92, Fairly Valued between 5.09 and 3.92, Overvalued between 5.09 and 5.68, and Strongly Overvalued above 5.68. The current Forward EV/EBITDA of 5.46 falls within the Overvalued range.

8.05

EV/EBIT

Rio Tinto PLC. (RIO) has a current EV/EBIT of 8.05. The 5-year average EV/EBIT is 5.93. The thresholds are as follows: Strongly Undervalued below 3.83, Undervalued between 3.83 and 4.88, Fairly Valued between 6.98 and 4.88, Overvalued between 6.98 and 8.03, and Strongly Overvalued above 8.03. The current Forward EV/EBIT of 8.05 falls within the Strongly Overvalued range.

1.96

Rio Tinto PLC. (RIO) has a current PS of 1.96. The 5-year average PS is 2.10. The thresholds are as follows: Strongly Undervalued below 1.73, Undervalued between 1.73 and 1.92, Fairly Valued between 2.28 and 1.92, Overvalued between 2.28 and 2.47, and Strongly Overvalued above 2.47. The current Forward PS of 1.96 falls within the Historic Trend Line -Fairly Valued range.

6.67

P/OCF

Rio Tinto PLC. (RIO) has a current P/OCF of 6.67. The 5-year average P/OCF is 6.16. The thresholds are as follows: Strongly Undervalued below 4.58, Undervalued between 4.58 and 5.37, Fairly Valued between 6.95 and 5.37, Overvalued between 6.95 and 7.74, and Strongly Overvalued above 7.74. The current Forward P/OCF of 6.67 falls within the Historic Trend Line -Fairly Valued range.

19.05

P/FCF

Rio Tinto PLC. (RIO) has a current P/FCF of 19.05. The 5-year average P/FCF is 12.39. The thresholds are as follows: Strongly Undervalued below 5.11, Undervalued between 5.11 and 8.75, Fairly Valued between 16.03 and 8.75, Overvalued between 16.03 and 19.66, and Strongly Overvalued above 19.66. The current Forward P/FCF of 19.05 falls within the Overvalued range.

Rio Tinto PLC (RIO) has a current Price-to-Book (P/B) ratio of 1.74. Compared to its 3-year average P/B ratio of 1.95 , the current P/B ratio is approximately -10.98% higher. Relative to its 5-year average P/B ratio of 2.10, the current P/B ratio is about -17.53% higher. Rio Tinto PLC (RIO) has a Forward Free Cash Flow (FCF) yield of approximately 4.88%. Compared to its 3-year average FCF yield of 7.26%, the current FCF yield is approximately -32.81% lower. Relative to its 5-year average FCF yield of 9.20% , the current FCF yield is about -46.99% lower.

1.72

P/B

Median3y

1.95

Median5y

2.10

4.88

FCF Yield

Median3y

7.26

Median5y

9.20

Competitors Valuation Multiple

The average P/S ratio for RIO's competitors is 2.67, providing a benchmark for relative valuation. Rio Tinto PLC Corp (RIO) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Carpenter Technology Corp

3.85

-5.38%

12.06B

Performance Decomposition

Market capitalization of RIO increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00%to the performance.

Overall, the performance of RIO in the past 1 year is driven by Unknown.