GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Rio Tinto PLC (MEX:RIO N) » Definitions » Cyclically Adjusted Price-to-FCF

Rio Tinto (MEX:RIO N) Cyclically Adjusted Price-to-FCF : 12.85 (As of Dec. 16, 2024)


View and export this data going back to 1973. Start your Free Trial

What is Rio Tinto Cyclically Adjusted Price-to-FCF?

As of today (2024-12-16), Rio Tinto's current share price is MXN1255.00. Rio Tinto's Cyclically Adjusted FCF per Share for the fiscal year that ended in Dec23 was MXN97.70. Rio Tinto's Cyclically Adjusted Price-to-FCF for today is 12.85.

The historical rank and industry rank for Rio Tinto's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

MEX:RIO N' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 9.61   Med: 17.72   Max: 28.17
Current: 10.82

During the past 13 years, Rio Tinto's highest Cyclically Adjusted Price-to-FCF was 28.17. The lowest was 9.61. And the median was 17.72.

MEX:RIO N's Cyclically Adjusted Price-to-FCF is ranked better than
76.17% of 256 companies
in the Metals & Mining industry
Industry Median: 23.59 vs MEX:RIO N: 10.82

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Rio Tinto's adjusted free cash flow per share data of for the fiscal year that ended in Dec23 was MXN84.003. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is MXN97.70 for the trailing ten years ended in Dec23.

Shiller PE for Stocks: The True Measure of Stock Valuation


Rio Tinto Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Rio Tinto's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Rio Tinto Cyclically Adjusted Price-to-FCF Chart

Rio Tinto Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.82 23.53 16.53 14.29 12.90

Rio Tinto Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial 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 - 14.29 - 12.90 -

Competitive Comparison of Rio Tinto's Cyclically Adjusted Price-to-FCF

For the Other Industrial Metals & Mining subindustry, Rio Tinto's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.


Rio Tinto's Cyclically Adjusted Price-to-FCF Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Rio Tinto's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Rio Tinto's Cyclically Adjusted Price-to-FCF falls into.



Rio Tinto Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Rio Tinto's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=1255.00/97.7
=12.85

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Rio Tinto's Cyclically Adjusted FCF per Share for the fiscal year that ended in Dec23 is calculated as:

For example, Rio Tinto's adjusted Free Cash Flow per Share data for the fiscal year that ended in Dec23 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec23 (Change)*Current CPI (Dec23)
=84.003/130.5000*130.5000
=84.003

Current CPI (Dec23) = 130.5000.

Rio Tinto Annual Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201412 48.598 99.900 63.484
201512 44.271 100.400 57.543
201612 62.161 102.200 79.374
201712 102.612 105.000 127.532
201812 72.465 107.100 88.298
201912 108.237 108.500 130.184
202012 118.306 109.400 141.124
202112 226.197 114.700 257.356
202212 112.267 125.300 116.926
202312 84.003 130.500 84.003

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Rio Tinto  (MEX:RIO N) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Rio Tinto Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Rio Tinto's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Rio Tinto Business Description

Industry
Address
6 St James’s Square, London, GBR, SW1Y 4AD
Rio Tinto is a global diversified miner. Iron ore is the dominant commodity, with significantly lesser contributions from copper, aluminum, diamonds, gold, and industrial minerals. The 1995 merger of RTZ and CRA, via a dual-listed structure, created the present-day company. The two operate as a single business entity, with shareholders in each company having equivalent economic and voting rights. Major assets included the Pilbara iron ore operations, a 30% stake in the Escondida copper mine, 66%-ownership of the Oyu Tolgoi copper mine in Mongolia, the Weipa and Gove bauxite mines in Australia, and six hydro-powered aluminum smelters in Canada.

Rio Tinto Headlines

No Headlines