Switch to:
Rio Tinto PLC (NYSE:RIO)
EV/EBIT
13.30 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Rio Tinto PLC's enterprise value is $98,015 Mil. Rio Tinto PLC's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $7,430 Mil. Therefore, Rio Tinto PLC's EV/EBIT ratio for today is 13.30.

RIO' s 10-Year EV/EBIT Range
Min: 4.7   Max: 35.5
Current: 13.3

4.7
35.5

During the past 13 years, the highest EV/EBIT Ratio of Rio Tinto PLC was 35.50. The lowest was 4.70. And the median was 12.70.

RIO's EV/EBITis ranked higher than
61% of the 1059 Companies
in the Global Industrial Metals & Minerals industry.

( Industry Median: 11.90 vs. RIO: 13.30 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Rio Tinto PLC's enterprise value for the quarter that ended in Dec. 2013 was $107,299 Mil. Rio Tinto PLC's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $7,430 Mil. Rio Tinto PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 was 6.93%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=98014.834/7430
=13.19

Rio Tinto PLC's current Enterprise Value is $98,015 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Rio Tinto PLC's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $7,430 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 Dec. 2013 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2013 )=Operating Income (TTM)/Enterprise Value (Q: Dec. 2013 )
=7430/107299.1302
=6.92 %

Rio Tinto PLC's Enterprise Value for the quarter that ended in Dec. 2013 was $107,299 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Rio Tinto PLC's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $7,430 Mil.

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


Related Terms

Enterprise Value, Operating Income, Earnings Yield (Joel Greenblatt)


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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 15.629.5410.2125.6710.1118.187.807.870.0014.44

Rio Tinto PLC Semi-Annual Data

Jun09Dec09Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13
ev2ebit 0.0018.180.007.800.007.870.000.000.0014.44
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide