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 10.00. 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): 3.22. 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: 9.9. 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) 2022P/E NTM
Rio Tinto plcFree trialFree trialFree trial
International PeersFree trialFree trialFree trial
General Mining-9.761.863.22
Cboe UK 10019.1715.9916.25
United Kingdom2.5613.8714.54
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Beta (Ref: Cboe UK 100)
Levered betaUnlevered beta
1-Year1.411.41
2-Year0.870.86
3-Year0.930.92
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Stock Perf excl. Dividends (in GBP)
RIOCboe UK 100Rel. Perf.
Year-to-Date14.1%2.8%11.3%
1-Week2.1%0.3%1.9%
1-Month17.2%5.4%11.8%
1-Year-7.5%12.3%-19.8%
3-Year42.2%7.7%34.4%
5-Year61.7%4.9%56.8%
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International Peers - Rio Tinto plc
Company NameCtryMarket
Cap.
last (mUSD)
Rio Tinto plcGBR121 813
International Peers Median1.52
Rio Tinto LimitedAUS29 150
BHP Group Ltd.AUS161 317
Anglo American plcGBR64 373
BHP Group PlcGBR187 866
Freeport-McMoRan Inc.USA63 423
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).