BHP Group Valuation
| BHP Stock | USD 52.36 0.34 0.65% |
At this time, the firm appears to be undervalued. BHP Group Limited shows a prevailing Real Value of $60.23 per share. The current price of the firm is $52.36. Our model approximates the value of BHP Group Limited from reviewing the firm fundamentals such as return on equity of 0.2, and Profit Margin of 0.14 % as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting BHP Group's valuation include:
Price Book 3.0604 | Enterprise Value 140.6 B | Enterprise Value Ebitda 5.9773 | Price Sales 2.3692 | Forward PE 11.236 |
Undervalued
Today
Please note that BHP Group's price fluctuation is very steady at this time. Calculation of the real value of BHP Group Limited is based on 3 months time horizon. Increasing BHP Group's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
BHP Group's intrinsic value may or may not be the same as its current market price of 52.36, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 52.36 | Real 60.23 | Target 66.19 | Hype 52.37 | Naive 49.32 |
The intrinsic value of BHP Group's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence BHP Group's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of BHP Group Limited helps investors to forecast how BHP stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of BHP Group more accurately as focusing exclusively on BHP Group's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use BHP Group's intrinsic value based on its ongoing forecasts of BHP Group's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against BHP Group's closest peers.
BHP Group Cash |
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BHP Valuation Trend
BHP Group's real value is important for investors to make better decisions and a more accurate overall view of BHP Group's financial worth over time. Using both BHP Group's enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
BHP Group Total Value Analysis
BHP Group Limited is currently forecasted to have company total value of 140.62 B with market capitalization of 132.74 B, debt of 20.18 B, and cash on hands of 5.22 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the BHP Group fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
140.62 B | 132.74 B | 20.18 B | 5.22 B |
BHP Group Investor Information
The book value of the company was currently reported as 8.84. The company last dividend was issued on the 13th of September 2024. BHP Group Limited had 1121:1000 split on the 2nd of June 2022. Based on the analysis of BHP Group's profitability, liquidity, and operating efficiency, BHP Group Limited is not in a good financial situation at the present time. It has a very high likelihood of going through financial trouble in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 12.7 B | 20.7 B |
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| Operating Income | 13.2 B | 17.5 B |
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BHP Group Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. BHP Group has an asset utilization ratio of 54.37 percent. This connotes that the Company is making $0.54 for each dollar of assets. An increasing asset utilization means that BHP Group Limited is more efficient with each dollar of assets it utilizes for everyday operations.BHP Group Ownership Allocation
BHP Group holds a total of 2.54 Billion outstanding shares. Almost 96.19 percent of BHP Group outstanding shares are held by general public with 3.81 % by other corporate entities. Please note that on June 8, 2023, Representative Brian Babin of US Congress acquired $15k to $50k worth of BHP Group Limited's common stock.BHP Group Profitability Analysis
The company reported the last year's revenue of 55.66 B. Total Income to common stockholders was 7.9 B with profit before taxes, overhead, and interest of 43.23 B.BHP Group Past Distributions to stockholders
About BHP Group Valuation
The stock valuation mechanism determines BHP Group's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of BHP Group Limited based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of BHP Group. We calculate exposure to BHP Group's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of BHP Group's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 28.7 B | 16.9 B | |
| Pretax Profit Margin | 0.29 | (0.11) | |
| Operating Profit Margin | 0.31 | (0.21) | |
| Net Loss | 0.14 | (0.12) | |
| Gross Profit Margin | 0.82 | (0.09) |
BHP Group Quarterly Retained Earnings |
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A single share of BHP Group represents a small ownership stake in the entity. As a stockholder of BHP, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
BHP Group Dividends Analysis For Valuation
As of 11/24/2024, Dividends Paid is likely to drop to about 4.4 B. In addition to that, Dividend Yield is likely to drop to 0.03. As of 11/24/2024, Retained Earnings is likely to drop to about 28.6 B. In addition to that, Earnings Yield is likely to drop to -0.12
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 7.7 B | 4.4 B | |
| Dividend Yield | 0.05 | 0.03 | |
| Dividend Payout Ratio | 0.97 | (0.22) | |
| Dividend Paid And Capex Coverage Ratio | 1.25 | 1.15 |
There are various types of dividends BHP Group can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of BHP shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from BHP Group Limited directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When BHP pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of BHP Group by the value of the dividends paid out.
BHP Group Growth Indicators
Investing in growth stocks can be very risky. If the company such as BHP Group does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 2.5 B | |
| Quarterly Earnings Growth Y O Y | 0.077 | |
| Forward Price Earnings | 11.236 |
BHP Group Current Valuation Indicators
BHP Group's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final BHP Group's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as BHP Group, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use BHP Group's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes BHP Group's worth.Additional Tools for BHP Stock Analysis
When running BHP Group's price analysis, check to measure BHP Group's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy BHP Group is operating at the current time. Most of BHP Group's value examination focuses on studying past and present price action to predict the probability of BHP Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move BHP Group's price. Additionally, you may evaluate how the addition of BHP Group to your portfolios can decrease your overall portfolio volatility.