RIO 1.32% $129.13 rio tinto limited

jp morgan valuation, page-4

  1. 511 Posts.
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    Whilst there is no doubt that RIO is a good medium term buy at these levels, one must ÑOT rely heavily on PERs in the resources industry alone, as the cyclical nature of their project orientated cash flows lends itself to the preferred DCF style of long term valuation...always cross check how far the price is away from the DCF (subject to a host of debatable assumptions)...RIO is currently at a premium of ~20% (BHP: 15%, ZFX – discount of ~20%)
 
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