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BHP Group Ltd
ASX:BHP

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BHP Group Ltd
ASX:BHP
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Price: 55.17 AUD 2.7%
Market Cap: AU$280.3B

P/FCFE

13.9
Current
19%
More Expensive
vs 3-y average of 11.7

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
13.9
=
Market Cap
AU$285.4B
/
Free Cash Flow to Equity
$14.2B

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
13.9
=
Market Cap
AU$285.4B
/
Free Cash Flow to Equity
$14.2B

Valuation Scenarios

BHP Group Ltd is trading above its 3-year average

If P/FCFE returns to its 3-Year Average (11.7), the stock would be worth AU$46.39 (16% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-32%
Maximum Upside
+80%
Average Upside
16%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 13.9 AU$55.17
0%
3-Year Average 11.7 AU$46.39
-16%
5-Year Average 9.4 AU$37.34
-32%
Industry Average 25.1 AU$99.49
+80%
Country Average 18.1 AU$71.76
+30%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close
Market Cap P/FCFE P/E
AU
BHP Group Ltd
ASX:BHP
272.8B AUD 13.9 19.3
AU
Rio Tinto Ltd
ASX:RIO
271.8B AUD 17.7 19.9
UK
Rio Tinto PLC
LSE:RIO
119.4B GBP 14.1 15.8
CH
Glencore PLC
LSE:GLEN
66.7B GBP 392.9 243.2
MX
Grupo Mexico SAB de CV
BMV:GMEXICOB
1.5T MXN 18 17
SA
Saudi Arabian Mining Company SJSC
SAU:1211
248.9B SAR -2 023.3 33.9
CN
CMOC Group Ltd
SSE:603993
410.6B CNY 26.7 19.6
UK
Anglo American PLC
LSE:AAL
42.3B GBP -56.8 -15
CN
China Molybdenum Co Ltd
OTC:CMCLF
47.1B USD 21.7 15.9
ZA
African Rainbow Minerals Ltd
JSE:ARI
41.9B ZAR 19.1 32.5
IN
Vedanta Ltd
NSE:VEDL
3T INR 8.6 7.4

Market Distribution

In line with most companies in Australia
Percentile
35th
Based on 1 160 companies
35th percentile
13.9
Low
0.2 — 12.5
Typical Range
12.5 — 35.6
High
35.6 —
Distribution Statistics
Australia
Min 0.2
30th Percentile 12.5
Median 18.1
70th Percentile 35.6
Max 5 049.1

BHP Group Ltd
Glance View

BHP Group Ltd., often perceived as a colossus in the world of mining, stands as a paragon of effective resource management and operational excellence. Originally rooted in Melbourne, this behemoth of a company has built an empire on the extraction and processing of essential raw materials. Its operations span the globe, with a portfolio primarily focusing on four pillars: iron ore, copper, coal, and petroleum. Each of these commodities serves critical roles in global industries—iron ore for steel production, copper for electrical systems, coal for energy, and petroleum for fuel and chemical products. BHP's extensive mining infrastructure and advanced technological integration enable it to efficiently extract and transport these materials to markets worldwide, capitalizing on scale, safety, and sustainability to enhance profitability. At the heart of BHP's financial engine lies its strategic emphasis on cost efficiency and expanding high-margin operations. The company systematically invests in innovation and development to optimize ore grades and extend the life of its mines, ensuring a steady stream of production that aligns with market demand. By hedging against the volatility typical of commodity markets through long-term contracts and judicious price management, BHP achieves a remarkable balance between risk and reward. Furthermore, the group's diversified portfolio mitigates exposure to downturns in any single commodity market. This approach not only fortifies its revenue streams but also positions BHP as a resilient entity amidst shifting global economic landscapes—a mining titan continually adapting to the minutes of time.

BHP Intrinsic Value
45.05 AUD
Overvaluation 18%
Intrinsic Value
Price AU$55.17
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