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Rio Tinto PLC (NYSE:RIO)
Enterprise Value
$78,422 Mil (As of Today)

Think of enterprise value as the theoretical takeover price. It is more comprehensive than market capitalization (market cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash and cash equivalents.

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Rio Tinto PLC's enterprise value is $78,422 Mil. Rio Tinto PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2015 was $24 Mil. Therefore, Rio Tinto PLC's EV/EBIT ratio for today is 3,267.57.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Rio Tinto PLC's enterprise value is $78,422 Mil. Rio Tinto PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2015 was $4,669 Mil. Therefore, Rio Tinto PLC's EV/EBITDA ratio for today is 16.80.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Rio Tinto PLC's enterprise value is $78,422 Mil. Rio Tinto PLC's revenue for the trailing twelve months (TTM) ended in Dec. 2015 was $34,829 Mil. Therefore, Rio Tinto PLC's EV/Revenue ratio for today is 2.25.


Definition

Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash and cash equivalents.

Rio Tinto PLC's Enterprise Value for the fiscal year that ended in Dec. 2015 is calculated as

Enterprise Value (A: Dec. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=52668.7616+0+20857
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+2436+6779-9470
=73,271

Rio Tinto PLC's Enterprise Value for the quarter that ended in Dec. 2015 is calculated as

Enterprise Value (Q: Dec. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=52668.7616+0+20857
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+2436+6779-9470
=73,271

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


Explanation

When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.

If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.

The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of enterprise value.

For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.

Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.

1. EV/EBIT ratio is calculated as enterprise value divided by its EBIT.

Rio Tinto PLC's EV/EBIT for today is

Rio Tinto PLC's current Enterprise Value is $78,422 Mil.
For company reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data. Rio Tinto PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2015 was $24 Mil.

2. EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA.

Rio Tinto PLC's EV/EBITDA for today is:

Rio Tinto PLC's current Enterprise Value is $78,422 Mil.
For company reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data. Rio Tinto PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2015 was $4,669 Mil.

3. EV/Revenue ratio is calculated as enterprise value divided by its Revenue.

Rio Tinto PLC's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=78421.651/34829
=2.25

Rio Tinto PLC's current Enterprise Value is $78,422 Mil.
For company reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data. Rio Tinto PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2015 was $34,829 Mil.

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


Related Terms

Market Cap, Preferred Stock, Long-Term Debt, Cash and Cash Equivalents


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
ev 111,836260,04183,745136,469153,008110,409115,693130,686106,58673,271

Rio Tinto PLC Semi-Annual Data

Jun11Dec11Jun12Dec12Jun13Dec13Jun14Dec14Jun15Dec15
ev 158,052110,409111,841115,693108,818130,686125,198106,58697,05973,271
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