Rio Tinto Group Valuation

Q: What is the Fair Price of 0KWZ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

0KWZ ($62.47) is trading below our estimate of [[fair value]] ($77.06)

Is 0KWZ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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 0KWZ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0KWZ ($62.47) is trading below our estimate of fair value ($77.06)

Significantly Below Fair Value: 0KWZ is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0KWZ?

Key metric: As 0KWZ is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0KWZ. This is calculated by dividing 0KWZ's market cap by their current earnings.
What is 0KWZ's PE Ratio?
PE Ratio	9.3x
Earnings	US$10.75b
Market Cap	US$105.53b

0KWZ 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	5.7x
PEG Ratio	12.9x

Price to Earnings Ratio vs Peers

How does 0KWZ's PE Ratio compare to its peers?

The above table shows the PE ratio for 0KWZ 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	16.1x
ANTO Antofagasta	27.4x	18.3%	UK£16.7b
KMR Kenmare Resources	4.7x	4.3%	UK£316.3m
GFM Griffin Mining	15.6x	-3.8%	UK£264.0m
BHP BHP Group	16.8x	5.0%	AU$201.9b
0KWZ Rio Tinto Group	9.3x	0.7%	US$84.0b

Price-To-Earnings vs Peers: 0KWZ is good value based on its Price-To-Earnings Ratio (9.3x) compared to the peer average (16.1x).

Price to Earnings Ratio vs Industry

How does 0KWZ's PE Ratio compare vs other companies in the GB Metals and Mining Industry?

9 Companies	Price / Earnings	Estimated Growth	Market Cap
ENPL En+ Group International	2.2x	8.0%	US$4.67b
NLMK Novolipetsk Steel	0.8x	n/a	US$4.08b
EVR EVRAZ	0.4x	n/a	US$1.42b
MTL Metals Exploration	0.9x	-60.3%	US$124.08m

9 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 0KWZ is good value based on its Price-To-Earnings Ratio (9.3x) compared to the UK Metals and Mining industry average (10.1x).

Price to Earnings Ratio vs Fair Ratio

What is 0KWZ'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.

0KWZ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.3x
Fair PE Ratio	18.9x

Price-To-Earnings vs Fair Ratio: 0KWZ is good value based on its Price-To-Earnings Ratio (9.3x) compared to the estimated Fair Price-To-Earnings Ratio (18.9x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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