Rio Tinto Ltd
ASX:RIO

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Rio Tinto Ltd
ASX:RIO
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Price: 116.74 AUD 0.26% Market Closed
Market Cap: 189B AUD
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Relative Value

The Relative Value of one RIO stock under the Base Case scenario is 163.25 AUD. Compared to the current market price of 116.74 AUD, Rio Tinto Ltd is Undervalued by 28%.

Relative Value is the estimated value of a stock based on various valuation multiples like P/E and EV/EBIT ratios. It offers a quick snapshot of a stock's valuation in relation to its peers and historical norms.

RIO Relative Value
Base Case
163.25 AUD
Undervaluation 28%
Relative Value
Price
Worst Case
Base Case
Best Case

Valuation Multiples

2.2
P/S
P/S
Price to Sales
2.2
vs History
42
vs Industry
47
Median 3Y
2.2
Median 5Y
2.2
Industry
1.7
Forward
2.2
More Details
11
P/E
P/E
Price to Earnings
11
vs History
47
vs Industry
17
Median 3Y
10.8
Median 5Y
11
Industry
15.4
Forward
10.6
More Details
7.8
P/OCF
P/OCF
Price to OCF
7.8
vs History
34
vs Industry
18
Median 3Y
7.8
Median 5Y
6.7
Industry
9.1
More Details
19.2
P/FCFE
P/FCFE
Price to FCFE
19.2
vs History
11
vs Industry
15
Median 3Y
14.5
Median 5Y
13.6
Industry
15
More Details
2.2
P/B
P/B
Price to Book Value
2.2
vs History
65
vs Industry
26
Median 3Y
2.3
Median 5Y
2.3
Industry
1.4
More Details
2.2
EV/S
EV/S
Enterprise Value to Sales
2.2
vs History
44
vs Industry
47
Median 3Y
2.2
Median 5Y
2.2
Industry
2.1
Forward
2.3
More Details
N/A
EV/GP
EV/GP
Enterprise Value to Gross Profit
N/A
vs History
vs Industry
58
Median 3Y
0
Median 5Y
0
Industry
7.2
More Details
5.7
EV/EBITDA
EV/EBITDA
Enterprise Value to EBITDA
5.7
vs History
22
vs Industry
23
Median 3Y
5.4
Median 5Y
4.8
Industry
9.9
Forward
5.2
More Details
7.8
EV/EBIT
EV/EBIT
Enterprise Value to EBIT
7.8
vs History
17
vs Industry
21
Median 3Y
6.6
Median 5Y
6
Industry
12.6
Forward
7.2
More Details
7.9
EV/OCF
EV/OCF
Enterprise Value to OCF
7.9
vs History
33
vs Industry
20
Median 3Y
7.9
Median 5Y
7
Industry
10.3
More Details
16.9
EV/FCFF
EV/FCFF
Enterprise Value to FCFF
16.9
vs History
22
vs Industry
12
Median 3Y
14.7
Median 5Y
11.8
Industry
13
More Details
1.4
EV/IC
EV/IC
Enterprise Value to IC
1.4
vs History
55
vs Industry
35
Median 3Y
1.5
Median 5Y
1.5
Industry
1.3
More Details

Multiples Across Competitors

RIO Competitors Multiples
Rio Tinto Ltd Competitors

All Multiples
P/S
P/E
EV/EBITDA
EV/EBIT
All Countries
All Countries
Close
Market Cap P/S P/E EV/EBITDA EV/EBIT
AU
Rio Tinto Ltd
ASX:RIO
189.4B AUD 2.2 11 5.7 7.8
AU
BHP Group Ltd
ASX:BHP
201.5B AUD 2.3 16 4.6 5.7
UK
Rio Tinto PLC
LSE:RIO
75.5B GBP 1.8 8.8 15.7 21.5
CH
Glencore PLC
LSE:GLEN
42.8B GBP 0.2 -103.3 198.7 481.8
SA
Saudi Arabian Mining Company SJSC
SAU:1211
150B SAR 5.2 53.3 17 32.5
UK
Anglo American PLC
LSE:AAL
31B GBP 1.3 -23.6 96.7 140.7
MX
Grupo Mexico SAB de CV
BMV:GMEXICOB
772.9B MXN 2.5 10.7 4.9 5.9
ZA
African Rainbow Minerals Ltd
JSE:ARI
29.8B Zac 0 0 0 0
IN
Hindustan Zinc Ltd
NSE:HINDZINC
2T INR 6.3 22.5 12.7 16.5
IN
Vedanta Ltd
NSE:VEDL
1.8T INR 1.2 33.8 5.2 7.1
CA
Teck Resources Ltd
NYSE:TECK
21B USD 2 61.5 6.6 10.3
P/E Multiple
Earnings Growth P/E to Growth
AU
Rio Tinto Ltd
ASX:RIO
Average P/E: 27.2
11
13%
0.8
AU
BHP Group Ltd
ASX:BHP
16
-33%
N/A
UK
Rio Tinto PLC
LSE:RIO
8.8
9%
0.9
CH
Glencore PLC
LSE:GLEN
Negative Multiple: -103.3
41%
N/A
SA
Saudi Arabian Mining Company SJSC
SAU:1211
53.3
295%
0.2
UK
Anglo American PLC
LSE:AAL
Negative Multiple: -23.6
1 272%
N/A
MX
Grupo Mexico SAB de CV
BMV:GMEXICOB
10.7
26%
0.4
ZA
A
African Rainbow Minerals Ltd
JSE:ARI
Not Available
-98%
N/A
IN
Hindustan Zinc Ltd
NSE:HINDZINC
22.5
55%
0.4
IN
Vedanta Ltd
NSE:VEDL
33.8
402%
0.1
CA
Teck Resources Ltd
NYSE:TECK
61.5
-38%
N/A
EV/EBITDA Multiple
EBITDA Growth EV/EBITDA to Growth
AU
Rio Tinto Ltd
ASX:RIO
Average EV/EBITDA: 36.8
5.7
13%
0.4
AU
BHP Group Ltd
ASX:BHP
4.6
-12%
N/A
UK
Rio Tinto PLC
LSE:RIO
15.7
9%
1.7
CH
Glencore PLC
LSE:GLEN
198.7
26%
7.6
SA
Saudi Arabian Mining Company SJSC
SAU:1211
17
58%
0.3
UK
Anglo American PLC
LSE:AAL
96.7
23%
4.2
MX
Grupo Mexico SAB de CV
BMV:GMEXICOB
4.9
38%
0.1
ZA
A
African Rainbow Minerals Ltd
JSE:ARI
Not Available
5 315%
N/A
IN
Hindustan Zinc Ltd
NSE:HINDZINC
12.7
46%
0.3
IN
Vedanta Ltd
NSE:VEDL
5.2
56%
0.1
CA
Teck Resources Ltd
NYSE:TECK
6.6
-16%
N/A
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
AU
Rio Tinto Ltd
ASX:RIO
Average EV/EBIT: 73
7.8
3%
2.6
AU
BHP Group Ltd
ASX:BHP
5.7
-20%
N/A
UK
Rio Tinto PLC
LSE:RIO
21.5
4%
6.1
CH
Glencore PLC
LSE:GLEN
481.8
13%
37.4
SA
Saudi Arabian Mining Company SJSC
SAU:1211
32.5
155%
0.2
UK
Anglo American PLC
LSE:AAL
140.7
20%
7.2
MX
Grupo Mexico SAB de CV
BMV:GMEXICOB
5.9
38%
0.2
ZA
A
African Rainbow Minerals Ltd
JSE:ARI
Not Available
3 771%
N/A
IN
Hindustan Zinc Ltd
NSE:HINDZINC
16.5
53%
0.3
IN
Vedanta Ltd
NSE:VEDL
7.1
77%
0.1
CA
Teck Resources Ltd
NYSE:TECK
10.3
-13%
N/A

See Also

Summary
RIO intrinsic value, competitors valuation, and company profile.
DCF Valuation
RIO stock valuation using Discount Cash Flow valuation method.
Relative Valuation
RIO stock valuation using valuation multiples.
Wall Street Estimates
RIO price targets and financial estimates made by Wall st analysts.
Profitability Analysis
Detailed analysis of the company's profitability.
Solvency Analysis
Analysis of the financial position and solvency of the company.
Financials
Income Statement, Balance Sheet, Cash Flow Statement.
Discount Rate
RIO stock discount rate: cost of equity and WACC.
Summary
DCF Valuation
Relative Valuation
Wall Street Estimates
Profitability Analysis
Solvency Analysis
Financials
Discount Rate
Discover More
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