Rio Tinto Valuation
| RIO Stock | USD 68.14 1.50 2.25% |
At this time, the company appears to be undervalued. Rio Tinto ADR holds a recent Real Value of $74.81 per share. The prevailing price of the company is $68.14. Our model determines the value of Rio Tinto ADR from analyzing the company fundamentals such as Operating Margin of 0.26 %, return on equity of 0.18, and Shares Outstanding of 1.62 B as well as examining its technical indicators and probability of bankruptcy. In general, most investors support obtaining undervalued entities and abandoning overvalued entities since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Rio Tinto's valuation include:
Price Book 1.9629 | Enterprise Value 113.4 B | Enterprise Value Ebitda 5.4157 | Price Sales 1.9827 | Forward PE 8.6806 |
Undervalued
Today
Please note that Rio Tinto's price fluctuation is very steady at this time. Calculation of the real value of Rio Tinto ADR 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.
Our valuation method for Rio Tinto ADR is useful when determining the fair value of the Rio stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Rio Tinto. 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 68.14 | Real 74.81 | Target 83.17 | Hype 68.15 | Naive 67.48 |
The real value of Rio Stock, also known as its intrinsic value, is the underlying worth of Rio Tinto ADR Company, which is reflected in its stock price. It is based on Rio Tinto's financial performance, assets, liabilities, 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, 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.
Estimating the potential upside or downside of Rio Tinto ADR 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: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Rio Tinto's intrinsic value based on its ongoing forecasts of Rio Tinto's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Rio Tinto's closest peers. When choosing an evaluation method for Rio Tinto ADR, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Rio Tinto Investments |
|
Rio Valuation Trend
Knowing Rio Tinto's actual value is paramount for traders to make sound investment determinations. Rio Tinto's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Rio Tinto's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Rio Tinto's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Rio Market Cap
Rio Tinto ADR is currently regarded as top stock in market capitalization category among related companies. Market capitalization of Materials industry is at this time estimated at about 111.32 Billion. Rio Tinto totals roughly 108.22 Billion in market capitalization claiming about 97% of all equities under Materials industry.Rio Tinto Valuation Ratios as Compared to Competition
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. You can analyze the relationship between different fundamental ratios across Rio Tinto competition to find correlations between indicators driving Rio Tinto's intrinsic value. More Info.Rio Tinto ADR is rated second in price to earning category among related companies. It is rated fourth in price to book category among related companies fabricating about 0.18 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Rio Tinto ADR is roughly 5.62 . As of the 25th of April 2024, Price To Book Ratio is likely to drop to 2.10. Comparative valuation analysis is a catch-all model that can be used if you cannot value Rio Tinto by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Rio Tinto's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. 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.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 the current worth of Rio Tinto ADR on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Rio Tinto ADR. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Rio Tinto ADR based exclusively on its fundamental and basic technical indicators. By analyzing Rio Tinto's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Rio Tinto's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. 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, relevant financial multiples and ratios, and then comparing them to Rio Tinto's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 32.4 B | 19.4 B | |
| Pretax Profit Margin | 0.26 | 0.19 | |
| Operating Profit Margin | 0.27 | 0.18 | |
| Net Profit Margin | 0.19 | 0.12 | |
| Gross Profit Margin | 0.60 | 0.44 |
Rio Tinto Quarterly Retained Earnings |
|
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.
A single share of Rio Tinto represents a small ownership stake in the entity. As a stockholder of Rio, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Rio Tinto Dividends Analysis For Valuation
As of the 25th of April 2024, Dividend Payout Ratio is likely to grow to 0.68, while Dividends Paid is likely to drop about 4 B. . As of the 25th of April 2024, Retained Earnings is likely to grow to about 40.3 B, while Earnings Yield is likely to drop 0.05.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 6.5 B | 4 B | |
| Dividend Yield | 0.05 | 0.03 | |
| Dividend Payout Ratio | 0.64 | 0.68 | |
| Dividend Paid And Capex Coverage Ratio | (24.61) | (25.84) |
There are various types of dividends Rio Tinto can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Rio shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Rio Tinto ADR directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Rio pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Rio Tinto by the value of the dividends paid out.
Rio Tinto Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Rio Tinto does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 1.6 B | |
| Quarterly Earnings Growth Y O Y | 0.431 | |
| Forward Price Earnings | 8.6806 |
Rio Tinto Current Valuation Indicators
Valuation refers to the process of determining the present value of Rio Tinto ADR and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Rio we look at many different elements of the entity such as Rio's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Rio Tinto's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Rio Tinto's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Rio Tinto, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Rio Tinto's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Rio Tinto's worth.When determining whether Rio Tinto ADR offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Rio Tinto's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Rio Tinto Adr Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Rio Tinto Adr Stock: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Rio Tinto ADR. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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.
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |
Is Rio Tinto's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Rio Tinto. If investors know Rio will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Rio Tinto listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.431 | Dividend Share 4.349 | Earnings Share 6.16 | Revenue Per Share 33.33 | Quarterly Revenue Growth 0.062 |
The market value of Rio Tinto ADR is measured differently than its book value, which is the value of Rio that is recorded on the company's balance sheet. Investors also form their own opinion of Rio Tinto's value that differs from its market value or its book value, called intrinsic value, which is Rio Tinto's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Rio Tinto's market value can be influenced by many factors that don't directly affect Rio Tinto's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Rio Tinto's value and its price as these two are different measures arrived at by different means. Investors typically determine if Rio Tinto is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rio Tinto's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.