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Rio Tinto PLC  (NYSE:RIO) Enterprise Value: $100,151 Mil (As of Today)

Think of enterprise value as the theoretical takeover price. It is more comprehensive than market capitalization (market cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash and cash equivalents.

EV-to-EBIT is calculated as enterprise value divided by its EBIT. As of today, Rio Tinto PLC's enterprise value is $100,151 Mil. Rio Tinto PLC's EBIT for the trailing twelve months (TTM) ended in Jun. 2017 was $7,130 Mil. Therefore, Rio Tinto PLC's EV/EBIT ratio for today is 14.05.

EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Rio Tinto PLC's enterprise value is $100,151 Mil. Rio Tinto PLC's EBITDA for the trailing twelve months (TTM) ended in Jun. 2017 was $11,924 Mil. Therefore, Rio Tinto PLC's EV/EBITDA ratio for today is 8.40.

EV-to-Revenue is calculated as enterprise value divided by its Revenue. As of today, Rio Tinto PLC's enterprise value is $100,151 Mil. Rio Tinto PLC's Revenue for the trailing twelve months (TTM) ended in Jun. 2017 was $33,781 Mil. Therefore, Rio Tinto PLC's EV/Revenue ratio for today is 2.96.


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
Enterprise Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 90,392.32 106,096.19 86,520.00 60,688.35 68,782.64

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
Enterprise Value 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 79,577.42 60,688.35 62,763.86 68,782.64 90,140.60

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

Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash and cash equivalents.

Rio Tinto PLC's Enterprise Value for the fiscal year that ended in Dec. 2016 is calculated as

Enterprise Value (A: Dec. 2016 )
=Market Cap (M)+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=53248.6392+0+16913
+Current Portion of Long-Term Debt+Minority Interest-Cash And Cash Equivalents
+717+6440-8536
=68,783

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

Enterprise Value (Q: Jun. 2017 )
=Market Cap (M)+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=75857.599+0+15106
+Current Portion of Long-Term Debt+Minority Interest-Cash And Cash Equivalents
+742+6534-8099
=90,141

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


Explanation

When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.

If a company has more cash than debt, the investor actually pays less than the Market Cap (M) because he immediately owns the cash once the transaction goes through.

The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of enterprise value.

For the companies with the same Market Cap (M), the smaller the Enterprise Value is, the cheaper the company is.

Enterprise Value can be negative when the company's net cash is more than its Market Cap (M). In this case the investor is basically getting the company for free and get paid for that.

1. EV-to-EBIT is calculated as enterprise value divided by its EBIT.

Rio Tinto PLC's EV/EBIT for today is

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=100150.751/7130
=14.05

Rio Tinto PLC's current Enterprise Value is $100,151 Mil.
For company reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data. Rio Tinto PLC's EBIT for the trailing twelve months (TTM) ended in Jun. 2017 was $7,130 Mil.

2. EV-to-EBITDA is calculated as enterprise value divided by its EBITDA.

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

EV-to-EBITDA=Enterprise Value (Today)/EBITDA(TTM)
=100150.751/11924
=8.40

Rio Tinto PLC's current Enterprise Value is $100,151 Mil.
For company reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data. Rio Tinto PLC's EBITDA for the trailing twelve months (TTM) ended in Jun. 2017 was $11,924 Mil.

3. EV-to-Revenue is calculated as enterprise value divided by its Revenue.

Rio Tinto PLC's EV/Revenue for today is:

EV-to-Revenue=Enterprise Value (Today)/Revenue (TTM)
=100150.751/33781
=2.96

Rio Tinto PLC's current Enterprise Value is $100,151 Mil.
For company reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data. Rio Tinto PLC's EBITDA for the trailing twelve months (TTM) ended in Jun. 2017 was $33,781 Mil.

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


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