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BHP Group Ltd
ASX:BHP

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BHP Group Ltd
ASX:BHP
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Price: 56.06 AUD -0.07%
Market Cap: AU$284.9B

P/OCF

10.2
Current
48%
More Expensive
vs 3-y average of 6.9

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
10.2
=
Market Cap
AU$285.4B
/
Operating Cash Flow
$19.7B

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
10.2
=
Market Cap
AU$285.4B
/
Operating Cash Flow
$19.7B

Valuation Scenarios

BHP Group Ltd is trading above its 3-year average

If P/OCF returns to its 3-Year Average (6.9), the stock would be worth AU$37.95 (32% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-38%
Maximum Upside
+30%
Average Downside
7%
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

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
All Countries
Close
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
China Molybdenum Co Ltd
OTC:CMCLF
52.2B USD 17.2 17.7
ZA
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

In line with most companies in Australia
Percentile
39th
Based on 1 393 companies
39th percentile
10.2
Low
0.2 — 8.9
Typical Range
8.9 — 19.2
High
19.2 —
Distribution Statistics
Australia
Min 0.2
30th Percentile 8.9
Median 13.2
70th Percentile 19.2
Max 8 864.3

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 20%
Intrinsic Value
Price AU$56.06
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