Rio2 Valuation

Is RIO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RIO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RIO (CA$0.7) is trading above our estimate of fair value (CA$0.5)

Significantly Below Fair Value: RIO is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RIO?

Key metric: As RIO is unprofitable and pre-revenue we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for RIO. This is calculated by dividing RIO's market cap by their current book value.
What is RIO's PB Ratio?
PB Ratio	2.7x
Book	US$78.58m
Market Cap	US$212.43m

RIO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	-20.4x
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does RIO's PB Ratio compare to its peers?

The above table shows the PB ratio for RIO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PB	Estimated Growth	Market Cap
Peer Average	3.8x
ELE Elemental Altus Royalties	1.2x	n/a	CA$265.4m
ORE Orezone Gold	0.9x	71.9%	CA$279.4m
JAG Jaguar Mining	0.8x	n/a	CA$293.4m
PRB Probe Gold	12.4x	-0.03%	CA$273.5m
RIO Rio2	2.7x	94.7%	CA$297.0m

Price-To-Book vs Peers: RIO is good value based on its Price-To-Book Ratio (2.7x) compared to the peer average (3.8x).

Price to Book Ratio vs Industry

How does RIO's PB Ratio compare vs other companies in the CA Metals and Mining Industry?

87 Companies	Price / Book	Estimated Growth	Market Cap
S Sherritt International	0.1x	n/a	US$49.73m
WM Wallbridge Mining	0.2x	n/a	US$47.06m
NCU Nevada Copper	0.1x	n/a	US$31.56m
ELR Eastern Platinum	0.3x	n/a	US$26.05m

87 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Book vs Industry: RIO is expensive based on its Price-To-Book Ratio (2.7x) compared to the Canadian Metals and Mining industry average (1.4x).

Price to Book Ratio vs Fair Ratio

What is RIO's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RIO PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	2.7x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate RIO's Price-To-Book Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst RIO forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	CA$0.70	CA$1.18 +69.0%	7.2%	CA$1.30	CA$1.10	n/a	3
Nov ’25	CA$0.69	CA$1.18 +71.5%	7.2%	CA$1.30	CA$1.10	n/a	3
Oct ’25	CA$0.62	CA$0.93 +50.5%	13.4%	CA$1.10	CA$0.80	n/a	3
Sep ’25	CA$0.55	CA$0.83 +51.5%	24.7%	CA$1.10	CA$0.60	n/a	3
Aug ’25	CA$0.54	CA$0.83 +54.3%	24.7%	CA$1.10	CA$0.60	n/a	3
Jul ’25	CA$0.49	CA$0.83 +70.1%	24.7%	CA$1.10	CA$0.60	n/a	3
Jun ’25	CA$0.53	CA$0.70 +32.1%	14.3%	CA$0.80	CA$0.60	n/a	2
May ’25	CA$0.46	CA$0.70 +53.8%	14.3%	CA$0.80	CA$0.60	n/a	2
Apr ’25	CA$0.42	CA$0.50 +19.0%	20.0%	CA$0.60	CA$0.40	n/a	2
Mar ’25	CA$0.36	CA$0.50 +37.0%	20.0%	CA$0.60	CA$0.40	n/a	2
Feb ’25	CA$0.34	CA$0.50 +47.1%	20.0%	CA$0.60	CA$0.40	n/a	2
Jan ’25	CA$0.40	CA$0.42 +6.3%	41.2%	CA$0.60	CA$0.25	n/a	2
Jul ’24	CA$0.28	CA$0.30 +5.3%	13.6%	CA$0.35	CA$0.25	CA$0.49	3
Jun ’24	CA$0.20	CA$0.30 +46.3%	13.6%	CA$0.35	CA$0.25	CA$0.53	3
May ’24	CA$0.20	CA$0.38 +87.5%	35.9%	CA$0.60	CA$0.25	CA$0.46	4
Apr ’24	CA$0.14	CA$0.38 +158.6%	35.9%	CA$0.60	CA$0.25	CA$0.42	4
Mar ’24	CA$0.20	CA$0.38 +87.5%	35.9%	CA$0.60	CA$0.25	CA$0.36	4
Feb ’24	CA$0.22	CA$0.36 +64.8%	38.2%	CA$0.60	CA$0.25	CA$0.34	4
Jan ’24	CA$0.20	CA$0.41 +112.3%	51.1%	CA$0.72	CA$0.15	CA$0.40	5
Dec ’23	CA$0.17	CA$0.41 +136.6%	51.1%	CA$0.72	CA$0.15	CA$0.19	5
Nov ’23	CA$0.12	CA$0.41 +260.0%	51.1%	CA$0.72	CA$0.15	CA$0.18	5

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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