BHP Group Limited American Depositary Shares (Each representing two Ordinary Shares) (BHP) Company Bio
BHP Group engages in the discovery, acquisition, development, and marketing of natural resources worldwide. It produces iron ore, metallurgical and energy coal, conventional and unconventional oil and gas, copper, aluminum, manganese, uranium, nickel, and silver deposits. The company was founded in 1851 and is based in Melbourne, Australia.
BHP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for BHP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that BHP Group Ltd ranked in the 35th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for BHP Group Ltd ended up being:
The company has produced more trailing twelve month cash flow than 96.44% of its sector Basic Materials.
BHP Group Ltd's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 23.29% of tickers in our DCF set.
BHP's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 23.29% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of BHP Group Ltd? See MTX, SUZ, IFF, GGB, and FSI.
Supervisors at [[BHP]]'s Escondida mine overwhelmingly rejected the company's final wage offer, moving them a step closer to a strike that could slow production at the world's biggest copper operation.BHP has requested five days of mediation offered under local labor laws in a bid to avert a strike, and talks...
BHP ([[BHP]] -0.8%) signed an option agreement for Encounter Resources’ Elliott copper project in Australia. The pact would give BHP the choice to enter an earn-in and joint venture deal to earn up to a 75% stake in the project.The company will have to spend up to A$22M over 10 years to become...
Top iron ore miners Rio Tinto, BHP Group and Fortescue Metals Group fell 1.2% each as prices of the steelmaking ingredient dropped 2.2% on Monday due to sluggish downstream demand and fresh environmental restrictions in a main steelmaking area.
Australian mining giants Rio Tinto and Fortescue Metals Group have joined BHP Group in reporting record shipments of iron ore, the bulk of it to China, as an infrastructure and property construction boom in the world's second largest economy drives a rebound in steel production.The companies have reported record earnings on the back of the iron ore shipments, even though exports of other minerals like aluminium and copper remain in the doldrums as the coronavirus pandemic saps global demand.Australia's record iron ore exports to China, combined with a surge in shipments of coking and thermal coal, indicate trade in the key industrial ingredients has not suffered because of a diplomatic spat between the two countries.Rio Tinto reported on Thursday its iron ore shipments to China ...