Rio Tinto Valuation

RIO Stock   118.74  0.87  0.73%   
At this time, the company appears to be overvalued. Rio Tinto holds a recent Real Value of USD109.58 per share. The prevailing price of the company is USD118.74. Our model determines the value of Rio Tinto from analyzing the company fundamentals such as Return On Equity of 0.2, operating margin of 0.29 %, and Shares Outstanding of 371.26 M as well as examining its technical indicators and probability of bankruptcy.
Price Book
2.1762
Enterprise Value
200 B
Enterprise Value Ebitda
5.6005
Price Sales
3.5596
Forward PE
14.9031
Overvalued
Today
118.74
Please note that Rio Tinto's price fluctuation is very steady at this time. Calculation of the real value of Rio Tinto 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.
Rio Tinto's intrinsic value may or may not be the same as its current market price of 118.74, 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  118.74 Real  109.58 Hype  118.75
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, news, and other external factors that may influence Rio Tinto's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
108.31
Downside
109.58
Real Value
130.61
Upside
Estimating the potential upside or downside of Rio Tinto 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:
Earnings
Estimates (0)
LowProjectedHigh
1.391.772.28
Details
Hype
Prediction
LowEstimatedHigh
117.48118.75120.02
Details

Rio Tinto Cash

6.79 Billion

Rio Tinto Total Value Analysis

Rio Tinto is at this time estimated to have takeover price of 200.02 B with market capitalization of 192.84 B, debt of 14.35 B, and cash on hands of 6.78 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Rio Tinto fundamentals before making investing decisions based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
200.02 B
192.84 B
14.35 B
6.78 B

Rio Tinto Investor Information

About 38.0% of the company shares are owned by institutional investors. The book value of Rio Tinto was at this time reported as 34.05. The company recorded earning per share (EPS) of 10.56. Rio Tinto last dividend was issued on the 15th of August 2024. The entity had 1.2679:1 split on the 17th of June 2009. Based on the analysis of Rio Tinto's profitability, liquidity, and operating efficiency, Rio Tinto is not in a good financial situation at the present time. It has a very high likelihood of going through financial trouble in February.
Current ValueLast YearChange From Last Year 10 Year Trend
Total Cash From Operating Activities12.4 B17.4 B
Way Down
Slightly volatile

Rio Tinto Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Rio Tinto has an asset utilization ratio of 52.19 percent. This implies that the Company is making USD0.52 for each dollar of assets. An increasing asset utilization means that Rio Tinto is more efficient with each dollar of assets it utilizes for everyday operations.
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid

Rio Tinto Ownership Allocation

Rio Tinto owns a total of 371.26 Million outstanding shares. 30% of Rio Tinto outstanding shares are owned by third-party entities. Institutional investors are typically referred to investors that purchase positions in a given stock to benefit from reduced commissions. Consequently, institutional investors are subject to different rules and regulations than regular investors. Please look out for any change in current institutional holding as this could mean something significant has changed at the company or is about to change. Please note that no matter how many assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.

Rio Tinto Profitability Analysis

The company reported the revenue of 54.04 B. Net Income was 9.95 B with profit before overhead, payroll, taxes, and interest of 16.87 B.

About Rio Tinto Valuation

The stock valuation mechanism determines Rio Tinto's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Rio Tinto based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Rio Tinto. We calculate exposure to Rio Tinto's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Rio Tinto's related companies.
Last ReportedProjected for Next Year
Gross Profit19.9 B15.4 B

Rio Tinto Quarterly Retained Earnings

40.15 Billion

Additional Tools for Rio Stock Analysis

When running Rio Tinto's price analysis, check to measure Rio Tinto's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Rio Tinto is operating at the current time. Most of Rio Tinto's value examination focuses on studying past and present price action to predict the probability of Rio Tinto's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Rio Tinto's price. Additionally, you may evaluate how the addition of Rio Tinto to your portfolios can decrease your overall portfolio volatility.