Rio Tinto Price To Book vs. Current Valuation
| RTNTF Stock | USD 78.00 1.12 1.46% |
For Rio Tinto profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Rio Tinto to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Rio Tinto Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Rio Tinto's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Rio Tinto Group over time as well as its relative position and ranking within its peers.
Rio |
Rio Tinto Group Current Valuation vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Rio Tinto's current stock value. Our valuation model uses many indicators to compare Rio Tinto value to that of its competitors to determine the firm's financial worth. Rio Tinto Group is rated below average in price to book category among its peers. It is currently regarded number one company in current valuation category among its peers reporting about 50,289,481,597 of Current Valuation per Price To Book. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Rio Tinto's earnings, one of the primary drivers of an investment's value.Rio Current Valuation vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Rio Tinto |
| = | 2.49 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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.
Rio Tinto |
| = | 125.28 B |
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.
Rio Current Valuation vs Competition
Rio Tinto Group is currently regarded number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Other Industrial Metals & Mining industry is at this time estimated at about 718.48 Billion. Rio Tinto retains roughly 125.28 Billion in current valuation claiming about 17% of all equities under Other Industrial Metals & Mining industry.
Rio Tinto Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Rio Tinto, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Rio Tinto will eventually generate negative long term returns. The profitability progress is the general direction of Rio Tinto's change in net profit over the period of time. It can combine multiple indicators of Rio Tinto, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. Rio Tinto Group was founded in 1873 and is headquartered in London, the United Kingdom. Rio Tinto is traded on OTC Exchange in the United States.
Rio Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Rio Tinto. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Rio Tinto position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Rio Tinto's important profitability drivers and their relationship over time.
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Other Information on Investing in Rio Pink Sheet
To fully project Rio Tinto's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Rio Tinto Group at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Rio Tinto's income statement, its balance sheet, and the statement of cash flows.