BHP Group Book Value Per Share vs. Beta
| BHP Stock | ARS 28,875 375.00 1.28% |
For BHP Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of BHP Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well BHP Group Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between BHP Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of BHP Group Limited over time as well as its relative position and ranking within its peers.
BHP |
BHP Group Limited Beta vs. Book Value Per Share Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining BHP Group's current stock value. Our valuation model uses many indicators to compare BHP Group value to that of its competitors to determine the firm's financial worth. BHP Group Limited is rated fifth in book value per share category among its peers. It is rated third in beta category among its peers totaling about 0.05 of Beta per Book Value Per Share. The ratio of Book Value Per Share to Beta for BHP Group Limited is roughly 21.94 . Comparative valuation analysis is a catch-all model that can be used if you cannot value BHP Group by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for BHP Group's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.BHP Beta vs. Book Value Per Share
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.
BHP Group |
| = | 17.77 X |
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
BHP Group |
| = | 0.81 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
BHP Beta Comparison
BHP Group is rated second in beta category among its peers.
Beta Analysis
As returns on the market increase, BHP Group's returns are expected to increase less than the market. However, during the bear market, the loss of holding BHP Group is expected to be smaller as well.
BHP Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on BHP Group. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of BHP Group position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the BHP Group's important profitability drivers and their relationship over time.
Use BHP Group in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if BHP Group position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BHP Group will appreciate offsetting losses from the drop in the long position's value.BHP Group Pair Trading
BHP Group Limited Pair Trading Analysis
The ability to find closely correlated positions to BHP Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace BHP Group when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back BHP Group - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling BHP Group Limited to buy it.
The correlation of BHP Group is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as BHP Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if BHP Group Limited moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for BHP Group can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your BHP Group position
In addition to having BHP Group in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Restaraunts Hotels Motels Thematic Idea Now
Restaraunts Hotels Motels
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Restaraunts Hotels Motels theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Restaraunts Hotels Motels Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in BHP Stock
When determining whether BHP Group Limited is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if BHP Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Bhp Group Limited Stock. Highlighted below are key reports to facilitate an investment decision about Bhp Group Limited Stock:Check out Trending Equities. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
To fully project BHP Group's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of BHP Group Limited at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include BHP Group's income statement, its balance sheet, and the statement of cash flows.