Historical Valuation
BHP Group Ltd (BHP) is now in the Overvalued zone, suggesting that its current forward PE ratio of 13.79 is considered Overvalued compared with the five-year average of 8.92. The fair price of BHP Group Ltd (BHP) is between 26.63 to 58.24 according to relative valuation methord. Compared to the current price of 62.95 USD , BHP Group Ltd is Overvalued By 8.09%.
Relative Value
Fair Zone
26.63-58.24
Current Price：62.95
8.09%
Overvalued
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
BHP Group Ltd (BHP) has a current Price-to-Book (P/B) ratio of 6.58. Compared to its 3-year average P/B ratio of 3.54 , the current P/B ratio is approximately 85.67% higher. Relative to its 5-year average P/B ratio of 3.38, the current P/B ratio is about 94.53% higher. BHP Group Ltd (BHP) has a Forward Free Cash Flow (FCF) yield of approximately 5.72%. Compared to its 3-year average FCF yield of 8.29%, the current FCF yield is approximately -30.96% lower. Relative to its 5-year average FCF yield of 10.65% , the current FCF yield is about -46.24% lower.
P/B
Median3y
3.54
Median5y
3.38
FCF Yield
Median3y
8.29
Median5y
10.65
Competitors Valuation Multiple
AI Analysis for BHP
The average P/S ratio for BHP competitors is 1.41, providing a benchmark for relative valuation. BHP Group Ltd Corp (BHP.N) exhibits a P/S ratio of 2.97, which is 110.8% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.
Performance Decomposition
AI Analysis for BHP
1Y
3Y
5Y
Market capitalization of BHP increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of BHP in the past 1 year is driven by Unknown.
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Frequently Asked Questions
Is BHP currently overvalued or undervalued?
BHP Group Ltd (BHP) is now in the Overvalued zone, suggesting that its current forward PE ratio of 13.79 is considered Overvalued compared with the five-year average of 8.92. The fair price of BHP Group Ltd (BHP) is between 26.63 to 58.24 according to relative valuation methord. Compared to the current price of 62.95 USD , BHP Group Ltd is Overvalued By 8.09% .
What is BHP Group Ltd (BHP) fair value?
BHP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of BHP Group Ltd (BHP) is between 26.63 to 58.24 according to relative valuation methord.
How does BHP's valuation metrics compare to the industry average?
The average P/S ratio for BHP's competitors is 1.41, providing a benchmark for relative valuation. BHP Group Ltd Corp (BHP) exhibits a P/S ratio of 2.97, which is 110.80% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.
What is the current P/B ratio for BHP Group Ltd (BHP) as of Jan 09 2026?
As of Jan 09 2026, BHP Group Ltd (BHP) has a P/B ratio of 6.58. This indicates that the market values BHP at 6.58 times its book value.
What is the current FCF Yield for BHP Group Ltd (BHP) as of Jan 09 2026?
As of Jan 09 2026, BHP Group Ltd (BHP) has a FCF Yield of 5.72%. This means that for every dollar of BHP Group Ltd’s market capitalization, the company generates 5.72 cents in free cash flow.
What is the current Forward P/E ratio for BHP Group Ltd (BHP) as of Jan 09 2026?
As of Jan 09 2026, BHP Group Ltd (BHP) has a Forward P/E ratio of 13.79. This means the market is willing to pay $13.79 for every dollar of BHP Group Ltd’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for BHP Group Ltd (BHP) as of Jan 09 2026?
As of Jan 09 2026, BHP Group Ltd (BHP) has a Forward P/S ratio of 2.97. This means the market is valuing BHP at $2.97 for every dollar of expected revenue over the next 12 months.