A strong performer from today's trading session is Rio Tinto Plc, whose shares shot up 2.7% to $54.78 per share. For those of you thinking about investing in the stock, here is a brief look at the company's fundamentals.
Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. The company belongs to the Basic Materials sector, which has an average price to earnings (P/E) ratio of 8.57 and an average price to book (P/B) ratio of 1.86. In contrast, Rio Tinto Plc has a trailing 12 month P/E ratio of 9.1 and a P/B ratio of 1.9.
P/B ratios are calculated by dividing the company's market value by its book value. The book value refers to all of the company's tangible assets minus its liabilities -- meaning that intangibles such as intellectual property, brand name, and good will are not taken into account. Traditionally, a P/B ratio of around 1 shows that a company is fairly valued, but owing to consistently higher valuations in the modern era, investors generally compare against sector averages.
Rio Tinto Plc has moved None% over the last year compared to None% for the S&P 500 -- a difference of None%. Rio Tinto Plc has a 52 week high of $84.69 and a 52 week low of $50.92.
If you are interested in keeping up to date with equity markets, subscribe to our free newsletter today!