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Rio Tinto PLC
LSE:RIO

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Rio Tinto PLC
LSE:RIO
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Price: 7 215 GBX -0.14%
Market Cap: £117.8B

EV/FCFF

39.5
Current
135%
More Expensive
vs 3-y average of 16.8

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
39.5
=
Enterprise Value
GBX132.7B
/
Free Cash Flow to Firm
$4.5B

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
39.5
=
Enterprise Value
GBX132.7B
/
Free Cash Flow to Firm
$4.5B

Valuation Scenarios

Rio Tinto PLC is trading above its 3-year average

If EV/FCFF returns to its 3-Year Average (16.8), the stock would be worth GBX3 076.7 (57% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-100%
Maximum Upside
No Upside Scenarios
Average Downside
80%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 39.5 GBX7 215
0%
3-Year Average 16.8 GBX3 076.7
-57%
5-Year Average 14.3 GBX2 614.35
-64%
Industry Average 0.1 GBX9.36
-100%
Country Average 0 GBX6.74
-100%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close
Market Cap EV/FCFF P/E
UK
Rio Tinto PLC
LSE:RIO
117.4B GBP 39.5 15.5
AU
BHP Group Ltd
ASX:BHP
279B AUD 20.5 18.8
AU
Rio Tinto Ltd
ASX:RIO
277.3B AUD 43.7 19.4
CH
Glencore PLC
LSE:GLEN
65B GBP -393.4 243
MX
Grupo Mexico SAB de CV
BMV:GMEXICOB
1.5T MXN 21.4 17.1
SA
Saudi Arabian Mining Company SJSC
SAU:1211
248.9B SAR 66.7 33.9
CN
CMOC Group Ltd
SSE:603993
410.6B CNY 29.3 19.5
UK
Anglo American PLC
LSE:AAL
41.4B GBP 29.5 -14.7
CN
China Molybdenum Co Ltd
OTC:CMCLF
47.1B USD 23.9 15.9
ZA
African Rainbow Minerals Ltd
JSE:ARI
43.1B ZAR 10.6 32.5
IN
Vedanta Ltd
NSE:VEDL
3T INR 7.7 7.5

Market Distribution

Higher than 96% of companies in United Kingdom
Percentile
96th
Based on 1 823 companies
96th percentile
39.5
Low
0 — 0
Typical Range
0 — 0.1
High
0.1 —
Distribution Statistics
United Kingdom
Min 0
30th Percentile 0
Median 0
70th Percentile 0.1
Max 1 344.9

Rio Tinto PLC
Glance View

Rio Tinto PLC operates at the heart of the Earth's riches, orchestrating a grand symphony of extraction and production within the global mining industry. Founded in 1873, this Anglo-Australian behemoth is renowned for its exploration, mining, and processing capabilities, which play a crucial role in supplying the world with metals and minerals essential for everyday life. The company is a titan in the mining of iron ore, aluminum, copper, and other key materials, such as diamonds and uranium. By tapping into an impressive portfolio of rich mining assets across continents, Rio Tinto combines cutting-edge technology with years of geological expertise to efficiently unearth and refine these valuable commodities. This intricate dance of complex geological surveys, adept resource mining, and meticulous refining processes sees raw materials transformed into high-quality products, ready to meet the ever-demanding needs of various industries worldwide. The company's revenue streams flow from its skillful navigation of market demands and efficient logistics operations that ensure steady distribution to end markets across the globe. In the verdant landscapes of the Pilbara region in Western Australia, Rio Tinto's iron ore operations stand as a testament to its leadership in supplying the key ingredient for steel production—a fundamental component in construction, transportation, and infrastructure industries. Meanwhile, its aluminum operations stretch from bauxite mining to alumina refining and aluminum smelting, providing lightweight solutions pivotal in automotive and aerospace applications. Copper, critical for the burgeoning green revolution, flows through Rio Tinto's meticulous network from mine to market. Underpinning it all is a commitment to sustainability and innovation, as Rio Tinto embraces technological advancements and adapts to shifting global demands, thereby cementing its stature as a cornerstone in the mining sector's economic tapestry.

RIO Intrinsic Value
5 110.15 GBX
Overvaluation 29%
Intrinsic Value
Price GBX7 215
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