BHP Group Ltd. (Formerly BHP Billiton Limited)

Australia Country flag Australia
Sector: General Mining
Ticker: BHP
ISIN: AU000000BHP4
Factsheet Factsheet

Market multiple valuation of BHP Group Ltd. ( BHP | AUS)

The most common multiple used in the valuation of stocks is the P/Earnings NTM multiple (Price to Earnings). P/E relates the current share price with the market expectations in terms of Earnings Per Share. This multiple is used to compare a company's market value with its earnings. A company with a high P/Earnings NTM is considered to be overvalued; a company with a low P/Earnings NTM is considered to be undervalued.
The P/Earnings NTM ratio of BHP Group Ltd. is slightly higher than the median of its peer group: around 12.00. The company valuation of BHP Group Ltd. according to these metrics is consistent with the market valuation of its peer group.
The P/Earnings NTM ratio of BHP Group Ltd. is significantly higher than the average of its sector (General Mining): 1.96. The company valuation of BHP Group Ltd. according to these metrics is way above the market valuation of its sector.
The P/Earnings NTM ratio of BHP Group Ltd. is higher than its historical 5-year average: 11.6. The (current) company valuation of BHP Group Ltd. is therefore above its valuation average over the last five years.

Valuation
P/E Last P/E (e) 2024P/E NTM
BHP Group Ltd.Free trialFree trialFree trial
International PeersFree trialFree trialFree trial
General Mining-3.84-3.051.96
S&P/ASX 20019.8817.7116.35
Australia-1.8413.2213.09
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Beta (Ref: S&P/ASX 200)
Levered betaUnlevered beta
1-Year0.780.76
2-Year1.161.12
3-Year1.041.01
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Stock Perf excl. Dividends (in GBP)
BHPS&P/ASX 200Rel. Perf.
Year-to-Date-19.6%2.9%-22.5%
1-Week0.7%-0.9%1.5%
1-Month-6.5%-2.3%-4.2%
1-Year-7.5%17.9%-25.5%
3-Year11.7%4.4%7.3%
5-Year32.2%17.5%14.7%
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International Peers - BHP Group Ltd.
Company NameCtryMarket
Cap.
last (mUSD)
BHP Group Ltd.AUS142 209
International Peers Median1.15
Anglo American plcGBR41 900
Rio Tinto LimitedAUS128 536
Rio Tinto plcGBR105 261
Vedanta LimitedINDN/A
Iluka Resources LimitedAUS1 666
GPRV Analysis
BHP Group Ltd.
Intl. Peers
U.S Patents No. 7,882,001 & 8,082,201
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Net Sales Chart
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Quotes Chart

1-Year Rebased Stock Chart

  • BHP Group Ltd.
  • S&P/ASX 200
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Multiples charts provide an effective way to quickly analyze a company's valuation over a period of time, and compare it against the valuation of another company, a personal list, or a market index.

About Market Multiples

Many methods can be used to value a company. In reality, business valuation is often a combination of these different approaches. One of the most widely used quantitative methods is the market multiples method. The market valuation is utilized generally as a primary market input, to provide an objective starting point for the valuation. Put simply, this method multiplies the sales or profits of a business by an industry averaged multiplier to calculate the Market Value of the business.
Current multiples include:
- Historical multiples based on standardized financials for the last completed fiscal period: Last, Last Twelve Months (LTM);
- Forward multiples based on consensus estimates for the current fiscal period and next ones: Next Twelve Months (NTM), FY0, FY1.
Current multiples based on per-share metrics (such as earnings per share or book value per share) are calculated using the last closing price, while current multiples based on company-level metrics (such as net sales, EBIT or EBITDA) are calculated using the current market cap or EV (Enterprise Value).