BHP Valuation

BHP Group Ltd

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56.060

+0.86(1.558%)1D

Overview
Forecast
Valuation
Earnings

BHP Relative Valuation

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. If the market price exceeds this fair value range, BHP is overvalued; if below, it's undervalued.

Historical Valuation

BHP Group Ltd (BHP) is now in the Overvalued zone, suggesting that its current forward PE ratio of 14.54 is considered Overvalued compared with the five-year average of 8.77. The fair price of BHP Group Ltd (BHP) is between 20.93 to 48.37 according to relative valuation methord. Compared to the current price of 56.06 USD , BHP Group Ltd is Overvalued By 15.89%.

Relative Value

Fair Zone

20.93-48.37

Current Price：56.06

15.89%

Overvalued

14.54

Trailing

Forward

5.99

EV/EBITDA

BHP Group Ltd. (BHP) has a current EV/EBITDA of 5.99. The 5-year average EV/EBITDA is 5.29. The thresholds are as follows: Strongly Undervalued below 4.05, Undervalued between 4.05 and 4.67, Fairly Valued between 5.91 and 4.67, Overvalued between 5.91 and 6.52, and Strongly Overvalued above 6.52. The current Forward EV/EBITDA of 5.99 falls within the Overvalued range.

7.80

EV/EBIT

BHP Group Ltd. (BHP) has a current EV/EBIT of 7.80. The 5-year average EV/EBIT is 6.54. The thresholds are as follows: Strongly Undervalued below 4.74, Undervalued between 4.74 and 5.64, Fairly Valued between 7.45 and 5.64, Overvalued between 7.45 and 8.35, and Strongly Overvalued above 8.35. The current Forward EV/EBIT of 7.80 falls within the Overvalued range.

2.78

BHP Group Ltd. (BHP) has a current PS of 2.78. The 5-year average PS is 2.68. The thresholds are as follows: Strongly Undervalued below 2.20, Undervalued between 2.20 and 2.44, Fairly Valued between 2.92 and 2.44, Overvalued between 2.92 and 3.15, and Strongly Overvalued above 3.15. The current Forward PS of 2.78 falls within the Historic Trend Line -Fairly Valued range.

8.12

P/OCF

BHP Group Ltd. (BHP) has a current P/OCF of 8.12. The 5-year average P/OCF is 6.89. The thresholds are as follows: Strongly Undervalued below 5.04, Undervalued between 5.04 and 5.96, Fairly Valued between 7.82 and 5.96, Overvalued between 7.82 and 8.74, and Strongly Overvalued above 8.74. The current Forward P/OCF of 8.12 falls within the Overvalued range.

21.04

P/FCF

BHP Group Ltd. (BHP) has a current P/FCF of 21.04. The 5-year average P/FCF is 12.56. The thresholds are as follows: Strongly Undervalued below 5.68, Undervalued between 5.68 and 9.12, Fairly Valued between 15.99 and 9.12, Overvalued between 15.99 and 19.43, and Strongly Overvalued above 19.43. The current Forward P/FCF of 21.04 falls within the Strongly Overvalued range.

BHP Group Ltd (BHP) has a current Price-to-Book (P/B) ratio of 5.97. Compared to its 3-year average P/B ratio of 3.43 , the current P/B ratio is approximately 74.26% higher. Relative to its 5-year average P/B ratio of 3.26, the current P/B ratio is about 82.96% higher. BHP Group Ltd (BHP) has a Forward Free Cash Flow (FCF) yield of approximately 6.35%. Compared to its 3-year average FCF yield of 9.08%, the current FCF yield is approximately -30.07% lower. Relative to its 5-year average FCF yield of 10.69% , the current FCF yield is about -40.57% lower.

5.97

P/B

Median3y

3.43

Median5y

3.26

6.35

FCF Yield

Median3y

9.08

Median5y

10.69

Competitors Valuation Multiple

The average P/S ratio for BHP's competitors is 1.38, providing a benchmark for relative valuation. BHP Group Ltd Corp (BHP) exhibits a P/S ratio of 2.78, which is 100.80% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Grupo Simec SAB de CV

Performance Decomposition

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.