Rio Tinto Valuation
| RIO Stock | USD 62.35 0.22 0.35% |
At this time, the company appears to be undervalued. Rio Tinto ADR holds a recent Real Value of $73.54 per share. The prevailing price of the company is $62.35. Our model determines the value of Rio Tinto ADR from analyzing the company fundamentals such as Return On Equity of 0.2, shares outstanding of 1.25 B, and Operating Margin of 0.29 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Rio Tinto's valuation include:
Price Book 1.8327 | Enterprise Value 105.5 B | Enterprise Value Ebitda 4.739 | Price Sales 1.8679 | 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.
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 62.35 | Real 73.54 | Target 83.17 | Hype 62.37 | Naive 59.72 |
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.
Rio Tinto Cash |
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Rio Valuation Trend
Knowing Rio Tinto's actual value is paramount for traders when making sound investment determinations. Using both Rio Tinto's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Rio Revenue by Product
Rio Tinto Total Value Analysis
Rio Tinto ADR is at this time forecasted to have company total value of 105.53 B with market capitalization of 101.2 B, debt of 14.35 B, and cash on hands of 4.89 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Rio Tinto fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
105.53 B | 101.2 B | 14.35 B | 4.89 B |
Rio Tinto Investor Information
The company has price-to-book ratio of 1.83. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Rio Tinto ADR recorded earning per share (EPS) of 6.58. The entity last dividend was issued on the 16th of August 2024. The firm had 4:1 split on the 30th of April 2010. Based on the analysis of Rio Tinto's profitability, liquidity, and operating efficiency, Rio Tinto ADR may be sliding down financialy. It has an above-average likelihood of going through some form of financial trouble next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 9.3 B | 15.2 B |
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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 suggests that the Company is making $0.52 for each dollar of assets. An increasing asset utilization means that Rio Tinto ADR is more efficient with each dollar of assets it utilizes for everyday operations.Rio Tinto Ownership Allocation
Rio Tinto owns a total of 1.25 Billion outstanding shares. Roughly 89.28 pct. of Rio Tinto outstanding shares are held by general public with 10.72 (%) by third-party entities. Please note that on July 9, 2024, Representative Josh Gottheimer of US Congress acquired under $15k worth of Rio Tinto ADR's common stock.Rio Tinto Profitability Analysis
The company reported the last year's revenue of 54.04 B. Total Income to common stockholders was 9.95 B with profit before taxes, overhead, and interest of 21.3 B.Rio Tinto Past Distributions to stockholders
About Rio Tinto Valuation
We use absolute and 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 their related drivers, we attempt to find the most accurate representation of Rio Tinto's intrinsic value. 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 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 | 0.74 |
Rio Tinto Quarterly Retained Earnings |
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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 November 2024, Dividend Payout Ratio is likely to grow to 0.68, while Dividends Paid is likely to drop about 4 B. . At this time, Rio Tinto's Retained Earnings are very stable compared to the past year. As of the 25th of November 2024, Price Earnings Ratio is likely to grow to 16.12, while Earnings Yield is likely to drop 0.06.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 6.5 B | 4 B | |
| Dividend Yield | 0.05 | 0.04 | |
| Dividend Payout Ratio | 0.64 | 0.68 | |
| Dividend Paid And Capex Coverage Ratio | 1.12 | 1.02 |
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.
| Common Stock Shares Outstanding | 1.6 B | |
| Quarterly Earnings Growth Y O Y | 0.133 | |
| Forward Price Earnings | 8.6806 |
Rio Tinto Current Valuation Indicators
Rio Tinto's valuation analysis is 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 closely tied with the direction of predictive economic indicators such as signals in gross domestic product. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Is Diversified Metals & Mining space 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 0.133 | Dividend Share 4.349 | Earnings Share 6.58 | Revenue Per Share 33.396 | Quarterly Revenue Growth 0.005 |
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.