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Rio Tinto plc

Exchange: NYSESector: Basic MaterialsIndustry: Other Industrial Metals & Mining

Rio Tinto plc (Rio Tinto) is engaged in finding, mining and processing mineral resources. The Company's product group includes aluminum product group, copper product group, diamonds and minerals group, energy product group and iron ore products group. Its products are iron ore, aluminum, copper, diamonds, coal, uranium, gold and industrial minerals (borax, titanium dioxide and salt). Its iron ore businesses delivered record production and shipments, and its copper business showed a second half recovery in copper volumes. In August 2012, Orocobre Ltd acquired Borax Argentina S.A. from Rio Tinto Ltd entities, Rio Tinto Minerals Development Limited and Borax Europe Limited. In September 2012, it sold the North American portion of its Alcan Cable business to General Cable Corporation. As of December 31, 2012, the Company had 51% interest in Turquoise Hill Resources Ltd.,formerly known as Ivanhoe Mines.

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Net income compounded at 3.7% annually over 6 years.

Current Price

$98.63

-1.94%

GoodMoat Value

$91.57

7.2% overvalued
Profile
Valuation (TTM)
Market Cap
P/E
EV
P/B2.58
Shares Out1.63B
P/Sales
Revenue$57.64B
EV/EBITDA

Rio Tinto plc (RIO) Valuation

RIO Fair Value Estimate

$91.577.2% overvalued

Blended fair value estimate based on DCF, Graham Number, and earnings-based models.

RIO Valuation Metrics

FCF$4.55B
FCF Growth Rate-11.51%
EPS Growth (CAGR)3.71%
WACC10.00%

RIO Valuation & Fair Value Analysis

Rio Tinto plc (RIO) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.

The GoodMoat Fair Value target for Rio Tinto plc is $91.57. The current stock price is $98.63, suggesting the stock is 7.7% overvalued.

Price-to-book ratio is 2.58.

GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Rio Tinto plc's intrinsic value.