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Rio Tinto PLC (NYSE:RIO)
EV/EBIT
11.30 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Rio Tinto PLC's enterprise value is $79,769 Mil. Rio Tinto PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $7,057 Mil. Therefore, Rio Tinto PLC's EV/EBIT ratio for today is 11.30.

RIO' s 10-Year EV/EBIT Range
Min: -103.3   Max: 25.4
Current: 8.29

-103.3
25.4

During the past 13 years, the highest EV/EBIT Ratio of Rio Tinto PLC was 25.40. The lowest was -103.30. And the median was 8.90.

RIO's EV/EBITis ranked higher than
63% of the 434 Companies
in the Global Industrial Metals & Minerals industry.

( Industry Median: 11.85 vs. RIO: 8.29 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Rio Tinto PLC's enterprise value for the quarter that ended in Jun. 2015 was $97,059 Mil. Rio Tinto PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $7,057 Mil. Rio Tinto PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2015 was 7.27%.


Definition

Rio Tinto PLC's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=79768.550/7057
=11.30

Rio Tinto PLC's current Enterprise Value is $79,769 Mil.
For company reported semi-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 Jun. 2015 was $7,057 Mil.

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


Explanation

This is a more accurate valuation of companies' operation because it consider the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt).

Rio Tinto PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jun. 2015 )=EBIT (TTM)/Enterprise Value (Q: Jun. 2015 )
=7057/97058.702
=7.27 %

Rio Tinto PLC's Enterprise Value for the quarter that ended in Jun. 2015 was $97,059 Mil.
For company reported semi-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 Jun. 2015 was $7,057 Mil.

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


Related Terms

Enterprise Value, Earnings Yield (Joel Greenblatt), Earnings Before Interest and Taxes (EBIT)


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

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
ev2ebit 0.000.000.000.000.000.000.000.000.0013.79

Rio Tinto PLC Semi-Annual Data

Dec10Jun11Dec11Jun12Dec12Jun13Dec13Jun14Dec14Jun15
ev2ebit 7.010.008.030.00-49.370.0032.2813.7910.620.00
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