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Rio Tinto PLC  (NYSE:RIO) Shiller PE Ratio: 22.31 (As of Today)

As of today, Rio Tinto PLC's current share price is $47.96. Rio Tinto PLC's E10 for the quarter that ended in Jun. 2017 was $2.15. Rio Tinto PLC's Shiller P/E Ratio for today is 22.31.

NYSE:RIO' s Shiller PE Ratio Range Over the Past 10 Years
Min: 7.05   Max: 51.86
Current: 20.15

7.05
51.86

During the past 13 years, Rio Tinto PLC's highest Shiller P/E Ratio was 51.86. The lowest was 7.05. And the median was 18.02.

NYSE:RIO's Shiller PE Ratio is ranked higher than
60% of the 203 Companies
in the Global industry.

( Industry Median: 24.80 vs. NYSE:RIO: 20.15 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Rio Tinto PLC's adjusted earnings per share data of for the fiscal year that ended in Dec16 was $2.553. Add all the adjusted EPS for the past 10 years together and divide 10 will get our font class ="def_body_menu" data-url ="e10/RIO/E10/Rio-Tinto-PLC" data-ticker="NYSE:RIO">E10, which is $2.15 for the trailing ten years ended in Dec16.


Historical Data

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

* Premium members only.

Rio Tinto PLC Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Shiller PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.03 17.73 14.70 10.93 17.82

Rio Tinto PLC Semi-Annual Data

Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17
Shiller PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 10.93 0.00 17.82 0.00

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Calculation

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

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

Shiller P/E Ratio=Share Price/ E10
=47.96/2.15
=22.31

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

Rio Tinto PLC's E10 for the quarter that ended in Jun. 2017 is calculated as:

For example, Rio Tinto PLC's adjusted earnings per share data for the fiscal year that ended in Dec16 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Dec16 (Change)*Current CPI (Dec16)
=2.553/241.432*241.432
=2.553

Current CPI (Dec16) = 241.432.

Rio Tinto PLC Annual Data

per_share_eps CPI Adj_EPS

Add all the adjusted EPS together and divide 10 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.


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