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:
We started the process of determining a valid price forecast for BHP Group Ltd with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that BHP Group Ltd ranked in the 34th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for BHP Group Ltd ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 14.97; that's higher than 85.22% of US stocks in the Basic Materials sector that have positive free cash flow.
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 25.65% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
IFF, HNRG, IOSP, MTX, and SUZ can be thought of as valuation peers to BHP, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
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 ...