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Rio Tinto PLC (NYSE:RIO)
EV/EBITDA
9.23 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Rio Tinto PLC's enterprise value is $79,548 Mil. Rio Tinto PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $8,803 Mil. Therefore, Rio Tinto PLC's EV/EBITDA ratio for today is 9.23.

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Rio Tinto PLC's stock price is $55.69. Rio Tinto PLC's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $1.97. Therefore, Rio Tinto PLC's P/E Ratio for today is 27.80.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=79548.382/8803
=9.04

Rio Tinto PLC's current Enterprise Value is $79,548 Mil.
For company reported semi-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 Jun. 2014 was $8,803 Mil.

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


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=55.69/1.973
=28.23

Rio Tinto PLC's share price for today is $55.69.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Rio Tinto PLC's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was $1.97.

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

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


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
ev2ebitda 13.939.057.7417.585.2211.296.106.1845.0312.13

Rio Tinto PLC Semi-Annual Data

Dec09Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13Jun14
ev2ebitda 11.290.006.100.006.180.0045.030.0012.130.00
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