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GuruFocus has detected 6 Warning Signs with Rio Tinto PLC $RIO.
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Rio Tinto PLC (NYSE:RIO)
Price-to-Free-Cash-Flow
16.19 (As of Today)

As of today, Rio Tinto PLC's share price is $41.69. Rio Tinto PLC's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2016 was $2.58. Hence, Rio Tinto PLC's Price-to-Free-Cash-Flow Ratio for today is 16.19.

RIO' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 4.48   Max: 68.36
Current: 12.53

4.48
68.36

During the past 13 years, Rio Tinto PLC's highest Price-to-Free-Cash-Flow Ratio was 68.36. The lowest was 4.48. And the median was 12.21.

RIO's Price-to-Free-Cash-Flow is ranked higher than
55% of the 281 Companies
in the Global Industrial Metals & Minerals industry.

( Industry Median: 17.69 vs. RIO: 12.53 )

Rio Tinto PLC's Free Cash Flow per Share for the six months ended in Jun. 2016 was $1.07. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2016 was $2.58.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Rio Tinto PLC was 20.00% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 45.40% per year.

During the past 13 years, Rio Tinto PLC's highest 3-Year average Free Cash Flow per Share Growth Rate was 97.10% per year. The lowest was -51.20% per year. And the median was 2.90% per year.


Definition

Rio Tinto PLC's Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/Free Cash Flow per Share (TTM)
=41.69/2.575
=16.19

Rio Tinto PLC's Share Price of today is $41.69.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Rio Tinto PLC's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2016 was $2.58.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

It can also be calculated from the numbers for the whole company:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management’s decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Related Terms

Free Cash Flow, Free Cash Flow per Share, P/S Ratio, P/B Ratio, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Rio Tinto PLC Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
pfcf 58.518.4517.324.4810.430.0038.5914.2510.9712.84

Rio Tinto PLC Semi-Annual Data

Jun12Dec12Jun13Dec13Jun14Dec14Jun15Dec15Jun16Dec16
pfcf 0.000.000.0038.590.0014.250.0010.970.0012.84
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