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Rio Tinto PLC (NYSE:RIO)
Shiller P/E Ratio
9.94 (As of Today)

As of today, Rio Tinto PLC's current share price is $33.70. Rio Tinto PLC's E10 for the quarter that ended in Jun. 2016 was $3.39. Rio Tinto PLC's Shiller P/E Ratio for today is 9.94.

RIO' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 5.94   Max: 42.02
Current: 11.77

5.94
42.02

During the past 13 years, Rio Tinto PLC's highest Shiller P/E Ratio was 42.02. The lowest was 5.94. And the median was 16.06.

RIO's Shiller P/E Ratio is ranked higher than
66% of the 176 Companies
in the Global Industrial Metals & Minerals industry.

( Industry Median: 24.61 vs. RIO: 11.77 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Rio Tinto PLC's adjusted earnings per share data of for the fiscal year that ended in Dec14 was $3.512. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $3.39 for the trailing ten years ended in Dec14.


Definition

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Rio Tinto PLC's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=33.70/3.39
=9.94

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Rio Tinto PLC's E10 for the quarter that ended in Jun. 2016 is calculated as:

For example, Rio Tinto PLC's adjusted earnings per share data for the fiscal year that ended in Dec14 was:

Adj_EPS=Earnigns per Share/CPI of Dec14 (Change)*Current CPI (Dec14)
=3.512/234.812*234.812
=3.512

Current CPI (Dec14) = 234.812.

Rio Tinto PLC Annual Data

200612200712200812200912201012201112201212201312201412201512
per share eps 5.5565.6632.3312.7537.2183.015-1.61.9733.512-0.5
CPI 201.800210.036210.228215.949219.179225.672229.601233.049234.812236.525
Adj_EPS 6.4656.3312.6042.9937.7333.137-1.6751.9883.512-0.472

Add all the adjusted EPS together and divide 10 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a company’s business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Price-to-Free-Cash-Flow ratio, E10


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Rio Tinto PLC Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 19.5732.118.4121.2222.6514.7217.3116.1213.5810.34

Rio Tinto PLC Semi-Annual Data

Dec11Jun12Dec12Jun13Dec13Jun14Dec14Jun15Dec15Jun16
ShillerPE 14.720.0017.310.0016.120.0013.580.0010.340.00
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