Rio Tinto Valuation
| RIOA Stock | EUR 59.00 0.50 0.85% |
At this time, the company appears to be overvalued. Rio Tinto Group holds a recent Real Value of €49.67 per share. The prevailing price of the company is €59.0. Our model determines the value of Rio Tinto Group from analyzing the company fundamentals such as Return On Equity of 0.24, shares outstanding of 1.62 B, and Operating Margin of 0.32 % as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Rio Tinto's price fluctuation is very steady at this time. Calculation of the real value of Rio Tinto Group 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.
The fair value of the Rio stock is determined by what a typical buyer is willing to pay for full or partial control of Rio Tinto Group. Since Rio Tinto is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Rio Stock. However, Rio Tinto's intrinsic value may or may not be the same as its current market price, 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 59.0 | Real 49.67 | Hype 59.0 | Naive 58.36 |
The real value of Rio Stock, also known as its intrinsic value, is the underlying worth of Rio Tinto Group Company, which is reflected in its stock price. It is based on Rio Tinto's financial performance, growth prospects, management team, or industry conditions. 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, or news.
Estimating the potential upside or downside of Rio Tinto Group 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: Rio Tinto Total Value Analysis
Rio Tinto Group is at this time estimated to have takeover price of 109.09 B with market capitalization of 109.42 B, debt of 10.15 B, and cash on hands of 9.62 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 Price | Market Cap | Debt Obligations | Cash |
109.09 B | 109.42 B | 10.15 B | 9.62 B |
Rio Tinto Investor Information
The book value of the company was at this time reported as 30.98. The company recorded earning per share (EPS) of 7.3. Rio Tinto Group last dividend was issued on the 9th of March 2023. Based on the analysis of Rio Tinto's profitability, liquidity, and operating efficiency, Rio Tinto Group is not in a good financial situation at the moment. It has a very high risk of going through financial straits in January.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 57.42 percent. This implies that the Company is making €0.57 for each dollar of assets. An increasing asset utilization means that Rio Tinto Group is more efficient with each dollar of assets it utilizes for everyday operations.Rio Tinto Ownership Allocation
Rio Tinto owns a total of 1.62 Billion outstanding shares. Roughly 88.03 pct. of Rio Tinto outstanding shares are held by general public with 11.97 (%) by third-party entities. 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 55.55 B. Net Income was 12.42 B with profit before overhead, payroll, taxes, and interest of 21.3 B.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Rio Tinto's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Rio Tinto and how it compares across the competition.
About Rio Tinto Valuation
The stock valuation mechanism determines Rio Tinto's current worth on a weekly basis. Our 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.Rio Tinto Group engages in finding, mining, and processing mineral resources worldwide. Rio Tinto Group was incorporated in 1873 and is headquartered in London, the United Kingdom. RIO TINTO is traded on Frankfurt Stock Exchange in Germany.
8 Steps to conduct Rio Tinto's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Rio Tinto's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Rio Tinto's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Rio Tinto's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Rio Tinto's revenue streams: Identify Rio Tinto's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Rio Tinto's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Rio Tinto's growth potential: Evaluate Rio Tinto's management, business model, and growth potential.
- Determine Rio Tinto's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Rio Tinto's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Complementary 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.
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