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 46th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 22%. The most interesting components of our discounted cash flow analysis for BHP Group Ltd ended up being:
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 32.45% of tickers in our DCF set.
As a business, BHP Group Ltd experienced a tax rate of about 27% over the past twelve months; relative to its sector (Basic Materials), this tax rate is higher than 93.07% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BHP, try CCF, PPG, KRO, LIN, and NP.