BHP Group Ltd
ASX:BHP
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P/OCF
Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.
Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.
Valuation Scenarios
If P/OCF returns to its 3-Year Average (6.9), the stock would be worth AU$37.95 (32% downside from current price).
| Scenario | P/OCF Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 10.2 | AU$56.06 |
0%
|
| 3-Year Average | 6.9 | AU$37.95 |
-32%
|
| 5-Year Average | 6.3 | AU$34.57 |
-38%
|
| Industry Average | 11.3 | AU$62.17 |
+11%
|
| Country Average | 13.2 | AU$72.89 |
+30%
|
Forward P/OCF
Today’s price vs future operating cash flow
Peer Comparison
| Market Cap | P/OCF | P/E | ||||
|---|---|---|---|---|---|---|
| AU |
|
BHP Group Ltd
ASX:BHP
|
284.9B AUD | 10.2 | 19.6 | |
| AU |
|
Rio Tinto Ltd
ASX:RIO
|
278.6B AUD | 11.8 | 20 | |
| UK |
|
Rio Tinto PLC
LSE:RIO
|
119.9B GBP | 9.4 | 15.9 | |
| CH |
|
Glencore PLC
LSE:GLEN
|
65.5B GBP | 15.4 | 238.8 | |
| MX |
|
Grupo Mexico SAB de CV
BMV:GMEXICOB
|
1.5T MXN | 15 | 18 | |
| SA |
|
Saudi Arabian Mining Company SJSC
SAU:1211
|
248.9B SAR | 22.8 | 33.9 | |
| CN |
|
CMOC Group Ltd
SSE:603993
|
414.4B CNY | 19.9 | 20.4 | |
| UK |
|
Anglo American PLC
LSE:AAL
|
43.5B GBP | 10.5 | -15.4 | |
| CN |
C
|
China Molybdenum Co Ltd
OTC:CMCLF
|
52.2B USD | 17.2 | 17.7 | |
| ZA |
A
|
African Rainbow Minerals Ltd
JSE:ARI
|
44.4B ZAR | 7.7 | 34.5 | |
| IN |
|
Vedanta Ltd
NSE:VEDL
|
2.8T INR | 7.7 | 20.3 |
Market Distribution
| Min | 0.2 |
| 30th Percentile | 8.9 |
| Median | 13.2 |
| 70th Percentile | 19.2 |
| Max | 8 864.3 |
Other Multiples
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.