BHP Group Valuation

BHPLF Stock  USD 28.45  0.45  1.61%   
At this time, the firm appears to be overvalued. BHP Group Limited shows a prevailing Real Value of $24.78 per share. The current price of the firm is $28.45. Our model approximates the value of BHP Group Limited from reviewing the firm fundamentals such as profit margin of 0.47 %, and Return On Equity of 0.43 as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors favor locking in undervalued instruments and disposing overvalued instruments since, in the future, asset prices and their ongoing real values will blend.
Overvalued
Today
28.45
Please note that BHP Group's price fluctuation is not too volatile 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.
Our valuation method for BHP Group Limited is useful when determining the fair value of the BHP pink sheet, which is usually determined by what a typical buyer is willing to pay for full or partial control of BHP Group. Since BHP Group is currently traded on the exchange, buyers and sellers on that exchange determine the market value of BHP Pink Sheet. However, BHP Group's intrinsic value may or may not be the same as its current market price, 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  28.45 Real  24.78 Hype  28.45 Naive  27.94
The real value of BHP Pink Sheet, also known as its intrinsic value, is the underlying worth of BHP Group Limited Company, which is reflected in its stock price. It is based on BHP Group's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. 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.
24.78
Real Value
31.30
Upside
Estimating the potential upside or downside of BHP Group Limited helps investors to forecast how BHP pink sheet'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:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
27.5028.5929.67
Details
Hype
Prediction
LowEstimatedHigh
25.5428.4531.36
Details
Potential
Annual Dividend
LowForecastedHigh
1.111.281.44
Details

BHP Group Valuation Ratios as Compared to Competition

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. You can analyze the relationship between different fundamental ratios across BHP Group competition to find correlations between indicators driving BHP Group's intrinsic value. More Info.
BHP Group Limited is number one stock in beta category among related companies. It is number one stock in price to earning category among related companies reporting about  26.83  of Price To Earning per Beta. . 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 Pink Sheet . 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. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the BHP Group's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates BHP Group's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in BHP Group and how it compares across the competition.

About BHP Group Valuation

The pink sheet valuation mechanism determines the current worth of BHP Group Limited on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of BHP Group Limited. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of BHP Group Limited based exclusively on its fundamental and basic technical indicators. By analyzing BHP Group's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of BHP Group's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. 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, relevant financial multiples and ratios, and then comparing them to BHP Group's related companies.
BHP Group Limited operates as a resources company in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America, and internationally. The company was founded in 1851 and is headquartered in Melbourne, Australia. BHP GROUP operates under Other Industrial Metals Mining classification in the United States and is traded on OTC Exchange. It employs 45295 people.

8 Steps to conduct BHP Group's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates BHP Group's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct BHP Group's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain BHP Group's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine BHP Group's revenue streams: Identify BHP Group's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research BHP Group's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish BHP Group's growth potential: Evaluate BHP Group's management, business model, and growth potential.
  • Determine BHP Group's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate BHP Group's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
BHP Group's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether BHP Group's value is low or high relative to the company's performance and growth projections. Determining the market value of BHP Group can be done in different ways, such as multiplying its stock price by its outstanding shares.
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

Please note that BHP Group has scaled down on payment of dividends at this time.
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

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, 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 Outstanding5.1 B
Quarterly Earnings Growth Y O Y1.888
Forward Price Earnings10.7411
Retained Earnings40.3 B
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 Pink Sheet 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 to better understand how to build diversified portfolios, which includes a position in BHP Group Limited. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis.
You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.

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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.
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Please note, there is a significant difference between BHP Group's value and its price as these two are different measures arrived at by different means. Investors typically determine if BHP Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, BHP Group's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.