BHP Group Share Price (BHP)

Found this on Morningstar

Our Discounted Cash Flow (DCF) analysis suggests BHP Group may be overvalued by 44.1%. Discover 10 high quality undervalued stocks or create your own screener to find better value opportunities.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for BHP Group.

Approach 2: BHP Group Price vs Earnings

For a profitable company like BHP Group, the P/E ratio is a straightforward way to see how much you are paying for each dollar of earnings. It captures what the market is currently willing to pay given expectations for future earnings and the perceived risk of those earnings.

Higher growth expectations or lower perceived risk usually support a higher P/E, while lower growth or higher risk tend to justify a lower P/E. BHP Group currently trades on a P/E of 20.76x. That sits above the Metals and Mining industry average of 12.81x, yet below the peer group average of 30.48x. This suggests the stock is priced higher than the broad industry, but not as highly as some peers.

Simply Wall St calculates a proprietary “Fair Ratio” for BHP Group of 19.41x. This is designed to reflect the P/E that might be expected given factors such as earnings growth, profit margin, industry, market cap and company specific risks. Because it blends these inputs, the Fair Ratio can be more tailored than a simple comparison against peers or an industry average.

Comparing the current P/E of 20.76x with the Fair Ratio of 19.41x suggests the stock is trading above this tailored reference point.

Result: OVERVALUED

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Upgrade Your Decision Making: Choose your BHP Group Narrative

Earlier it was mentioned that there is an even better way to think about valuation. Narratives on Simply Wall St’s Community page give you a simple way to set out your own story for BHP Group, link that story to explicit assumptions for future revenue, earnings and margins, and arrive at a Fair Value you can compare with the current price. These Narratives update automatically as new news or earnings arrive, and different investors can express very different views, such as one Narrative that sees Fair Value around A$31.79 based on more cautious growth and another that sees Fair Value around A$121.48 based on much stronger growth expectations.

For BHP Group however we'll make it really easy for you with previews of two leading BHP Group Narratives:

These sit on opposite sides of the valuation debate, so they give you a quick feel for how different investors are framing the same stock at the same share price.

🐂 BHP Group Bull Case

Fair value: A$121.48

Implied pricing gap vs A$57.95: around 52% below this fair value estimate

Vale released there results, and although results were higher, they missed analysts expectations. SP dropped, but is now up above share price day before results this week.

Vale SA is seen in Sao Goncalo do Rio Abaixo, Brazil February 4, 2019. REUTERS/Washington Alves Purchase Licensing Rights, opens new tab

SAO PAULO, April 28 (Reuters) - Vale (VALE3.SA), opens new tab, one of the world's largest iron ore ​producers, on Tuesday posted a 36% increase in its first-quarter net ‌profit as it boosted sales volumes and benefited from higher prices for its products, nevertheless missing market estimates.

Rio de Janeiro-based Vale reported that its net profit in the January-March ​period came in at $1.89 billion, below the $2.05 billion predicted by analysts polled ​by LSEG.

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Someone just bought. Wasn’t me …

20-Apr-26 12:32:49 2,934.00 251 Buy* 7,364 A

Silly Billies…

2000p is a bottom I’m waiting for this year at least

Overvalued, what a drop it’s gona be when we buy MORE.

Iv been waiting for months for this…

https://uk.finance.yahoo.com/news/too-consider-bhp-group-asx-190405201.html

Downward pressure is not far

https://www.britishbulls.com/SignalPage.aspx?lang=en&Ticker=BHP.L#google_vignette