Rio Tinto Group Valuation

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

RIOP (CHF80.84) is trading below our estimate of [[fair value]] (CHF129.43)

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

Valuation Score

6/6

Valuation Score 6/6

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

Share Price vs Fair Value

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

Below Fair Value: RIOP (CHF80.84) is trading below our estimate of fair value (CHF129.43)

Significantly Below Fair Value: RIOP is trading below fair value by more than 20%.

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for RIOP. This is calculated by dividing RIOP's market cap by their current preferred multiple.
What is RIOP's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	US$106.85b

RIOP 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	2.1x
Enterprise Value/EBITDA	5.8x
PEG Ratio	50.1x

Price to Earnings Ratio vs Peers

How does RIOP's PE Ratio compare to its peers?

The above table shows the PE ratio for RIOP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	31.5x
HOLN Holcim	15.3x	8.0%	CHF 45.9b
GIVN Givaudan	38.9x	5.3%	CHF 40.2b
SIKA Sika	35.6x	11.5%	CHF 43.6b
EMSN EMS-CHEMIE HOLDING	36.4x	7.9%	CHF 16.6b
RIOP Rio Tinto Group	9.5x	0.2%	CHF 81.4b

Price-To-Earnings vs Peers: RIOP is good value based on its Price-To-Earnings Ratio (9.5x) compared to the peer average (31.6x).

Price to Earnings Ratio vs Industry

How does RIOP's PE Ratio compare vs other companies in the European Metals and Mining Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	27.3%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	27.3%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: RIOP is good value based on its Price-To-Earnings Ratio (9.5x) compared to the European Metals and Mining industry average (15.3x).

Price to Earnings Ratio vs Fair Ratio

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

RIOP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.5x
Fair PE Ratio	24.4x

Price-To-Earnings vs Fair Ratio: RIOP is good value based on its Price-To-Earnings Ratio (9.5x) compared to the estimated Fair Price-To-Earnings Ratio (24.4x).

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 RIOP 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	n/a	CHF 66.19 0%	13.7%	CHF 83.90	CHF 41.59	n/a	19
Aug ’25	CHF 80.84	CHF 68.73 -15.0%	12.0%	CHF 86.29	CHF 51.55	n/a	19
Jul ’25	CHF 80.84	CHF 70.23 -13.1%	11.8%	CHF 87.71	CHF 52.19	n/a	19
Jun ’25	CHF 80.84	CHF 69.86 -13.6%	11.2%	CHF 88.27	CHF 51.66	n/a	19
May ’25	CHF 80.84	CHF 70.07 -13.3%	11.7%	CHF 88.12	CHF 51.81	n/a	19
Apr ’25	CHF 80.84	CHF 69.80 -13.7%	12.0%	CHF 90.22	CHF 51.40	n/a	19
Mar ’25	CHF 80.84	CHF 69.47 -14.1%	10.2%	CHF 88.18	CHF 55.95	n/a	19
Feb ’25	CHF 80.84	CHF 69.21 -14.4%	10.6%	CHF 87.01	CHF 55.58	n/a	20
Jan ’25	CHF 80.84	CHF 67.37 -16.7%	11.6%	CHF 87.35	CHF 56.18	n/a	19
Dec ’24	CHF 80.84	CHF 64.65 -20.0%	13.1%	CHF 87.77	CHF 53.53	n/a	19
Nov ’24	CHF 80.84	CHF 65.09 -19.5%	12.9%	CHF 85.49	CHF 49.57	n/a	19
Oct ’24	CHF 80.84	CHF 67.20 -16.9%	13.6%	CHF 87.11	CHF 49.98	n/a	19
Sep ’24	CHF 80.84	CHF 66.33 -18.0%	13.2%	CHF 84.07	CHF 50.26	n/a	20
Aug ’24	CHF 80.84	CHF 65.77 -18.6%	13.0%	CHF 83.30	CHF 50.50	CHF 80.84	20
Jul ’24	CHF 80.84	CHF 66.06 -18.3%	14.3%	CHF 84.75	CHF 43.68	CHF 80.84	20
Jun ’24	CHF 80.84	CHF 68.17 -15.7%	14.0%	CHF 84.61	CHF 43.57	CHF 80.84	21
May ’24	CHF 80.84	CHF 66.42 -17.8%	13.7%	CHF 83.69	CHF 42.93	CHF 80.84	22
Apr ’24	CHF 80.84	CHF 66.34 -17.9%	13.6%	CHF 82.77	CHF 43.36	CHF 80.84	22
Mar ’24	CHF 80.84	CHF 68.16 -15.7%	13.8%	CHF 85.04	CHF 42.25	CHF 80.84	23
Feb ’24	CHF 80.84	CHF 66.85 -17.3%	14.2%	CHF 84.20	CHF 41.70	CHF 80.84	23
Jan ’24	CHF 80.84	CHF 60.86 -24.7%	14.3%	CHF 76.13	CHF 41.42	CHF 80.84	23
Dec ’23	CHF 80.84	CHF 60.41 -25.3%	14.8%	CHF 77.15	CHF 42.94	CHF 80.84	23
Nov ’23	CHF 80.84	CHF 62.68 -22.5%	15.4%	CHF 79.02	CHF 44.13	CHF 80.84	23
Oct ’23	CHF 80.84	CHF 62.42 -22.8%	14.8%	CHF 80.12	CHF 43.11	CHF 80.84	23
Sep ’23	CHF 80.84	CHF 64.56 -20.1%	13.9%	CHF 80.50	CHF 48.56	CHF 80.84	23
Aug ’23	CHF 80.84	CHF 64.70 -20.0%	16.2%	CHF 94.54	CHF 47.08	CHF 80.84	23

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