Rio Tinto Valuation

RTNTF Stock  USD 81.50  2.50  3.16%   
At this time, the company appears to be fairly valued. Rio Tinto Group holds a recent Real Value of $81.5 per share. The prevailing price of the company is $81.5. Our model determines the value of Rio Tinto Group from analyzing the company fundamentals such as Shares Outstanding of 371.22 M, operating margin of 0.39 %, and Return On Equity of 0.33 as well as examining its technical indicators and probability of bankruptcy. In general, most investors support locking in undervalued entities and disposing overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
Fairly Valued
Today
81.50
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.
Our valuation method for Rio Tinto Group is useful when determining the fair value of the Rio pink sheet, 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 Pink Sheet. 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  81.5 Real  81.5 Hype  81.5 Naive  81.8
The real value of Rio Pink Sheet, 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, 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.
81.50
Real Value
84.35
Upside
Estimating the potential upside or downside of Rio Tinto Group helps investors to forecast how Rio pink sheet'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:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
74.1777.6981.22
Details
Hype
Prediction
LowEstimatedHigh
78.6581.5084.35
Details
Potential
Annual Dividend
LowForecastedHigh
1.161.211.26
Details

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 Group is currently regarded as top stock in net asset category among related companies. It is currently regarded as top stock in beta category among related companies . The ratio of Net Asset to Beta for Rio Tinto Group is about  147,924,094,307 . 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 Pink Sheet . 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 pink sheet valuation mechanism determines the current worth of Rio Tinto Group on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Rio Tinto Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Rio Tinto Group 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.
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.

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.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Rio Tinto's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Rio Tinto's value is low or high relative to the company's performance and growth projections. Determining the market value of Rio Tinto can be done in different ways, such as multiplying its stock price by its outstanding shares.
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

Please note that Rio Tinto has scaled down on payment of dividends at this time.
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 Group 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 Outstanding1.6 B
Quarterly Earnings Growth Y O Y-0.277
Forward Price Earnings10.5708
Retained Earnings33.3 B
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Rio Tinto Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.
You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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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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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.