Rio Tinto plc

United Kingdom Country flag United Kingdom
Sector: General Mining
Ticker: RIO
ISIN: GB0007188757
Factsheet Factsheet

Market multiple valuation of Rio Tinto plc ( RIO | GBR)

The most common multiple used in the valuation of stocks is the P/Earnings NTM multiple (Price to Earnings). P/E relates the current share price with the market expectations in terms of Earnings Per Share. This multiple is used to compare a company's market value with its earnings. A company with a high P/Earnings NTM is considered to be overvalued; a company with a low P/Earnings NTM is considered to be undervalued.
The P/Earnings NTM ratio of Rio Tinto plc is significantly lower than the median of its peer group: around 11.00. The company valuation of Rio Tinto plc according to these metrics is way below the market valuation of its peer group.
The P/Earnings NTM ratio of Rio Tinto plc is significantly lower than the average of its sector (General Mining): 3.17. The company valuation of Rio Tinto plc according to these metrics is way below the market valuation of its sector.
The P/Earnings NTM ratio of Rio Tinto plc is significantly lower than its historical 5-year average: 9.7. The (current) company valuation of Rio Tinto plc is therefore way below its valuation average over the last five years.

Valuation
P/E Last P/E (e) 2021P/E NTM
Rio Tinto plcFree trialFree trialFree trial
International PeersFree trialFree trialFree trial
General Mining-4.51-2.293.17
Cboe UK 10013.5914.8913.52
United Kingdom5.0010.0010.25
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Beta (Ref: Cboe UK 100)
Levered betaUnlevered beta
1-Year0.740.75
2-Year1.191.21
3-Year0.840.85
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Stock Perf excl. Dividends (in GBP)
RIOCboe UK 100Rel. Perf.
Year-to-Date18.2%2.2%16.0%
1-Week3.2%-1.0%4.2%
1-Month13.1%2.4%10.7%
1-Year22.0%2.8%19.1%
3-Year37.1%3.3%33.8%
5-Year66.6%0.9%65.7%
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International Peers - Rio Tinto plc
Company NameCtryMarket
Cap.
last (mUSD)
Rio Tinto plcGBR114 479
International Peers Median1.18
Rio Tinto LimitedAUS128 532
Anglo American plcGBR53 976
BHP Group PlcGBRN/A
Vedanta LimitedIND14 181
Ferrexpo plcGBR1 238
GPRV Analysis
GPRV® analysis is not available due to one of the
following reasons:
  • - Company is not covered by analysts (no estimates)
  • - Company is an insurance company
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Net Sales Chart
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Quotes Chart

1-Year Rebased Stock Chart

  • Rio Tinto plc
  • Cboe UK 100
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Did you know ?

Multiples charts provide an effective way to quickly analyze a company's valuation over a period of time, and compare it against the valuation of another company, a personal list, or a market index.

About Market Multiples

Many methods can be used to value a company. In reality, business valuation is often a combination of these different approaches. One of the most widely used quantitative methods is the market multiples method. The market valuation is utilized generally as a primary market input, to provide an objective starting point for the valuation. Put simply, this method multiplies the sales or profits of a business by an industry averaged multiplier to calculate the Market Value of the business.
Current multiples include:
- Historical multiples based on standardized financials for the last completed fiscal period: Last, Last Twelve Months (LTM);
- Forward multiples based on consensus estimates for the current fiscal period and next ones: Next Twelve Months (NTM), FY0, FY1.
Current multiples based on per-share metrics (such as earnings per share or book value per share) are calculated using the last closing price, while current multiples based on company-level metrics (such as net sales, EBIT or EBITDA) are calculated using the current market cap or EV (Enterprise Value).