Bhp Billiton Stock Valuation

BHP -  USA Stock  

USD 56.32  1.57  2.87%

What is the intrinsic value of Bhp Billiton stock? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Bhp Billiton, is its stock price multiplied by the total number of shares outstanding, calculating Bhp Billiton's enterprise value requires a different approach. It uses Bhp Billiton's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Bhp Billiton Free Cash Flow is very stable at the moment as compared to the past year. Bhp Billiton reported last year Free Cash Flow of 24.98 Billion. As of 25th of June 2022, Tangible Asset Value is likely to grow to about 99.8 B, while Enterprise Value is likely to drop about 165.3 B.
Bhp Billiton shows a prevailing Real Value of $61.54 per share. The current price of the firm is $56.32. At this time, the firm appears to be undervalued. Our model approximates the value of Bhp Billiton from analyzing the firm fundamentals such as Current Valuation of 180.9 B, return on equity of 33.16 %, and Profit Margin of 24.85 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor obtaining undervalued instruments and abandoning overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
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Bhp Billiton Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Bhp Billiton's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Bhp Billiton Most Recent Valuation Data

Price Book
2.77
Price Sales
2.86
Forward Annual Dividend Yield
0.12
EBITDA
40.2 B
Dividend Share
3.5
Ex Dividend Date
2022-02-24
Beta
0.82
Undervalued
Today 56.32
Please note that Bhp Billiton's price fluctuation is very steady at this time. Calculation of the real value of Bhp Billiton is based on 3 months time horizon. Increasing Bhp Billiton's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Bhp Billiton is useful when determining the fair value of the Bhp Billiton stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Bhp Billiton. Since Bhp Billiton is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Bhp Billiton Stock. However, Bhp Billiton's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
61.54
Real Value
64.69
Upside
Estimating the potential upside or downside of Bhp Billiton helps investors to forecast how Bhp Billiton stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Bhp Billiton more accurately as focusing exclusively on Bhp Billiton's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
52.6162.3172.01
Details
Hype
Prediction
LowEstimated ValueHigh
51.6254.7757.92
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.360.370.37
Details
8 Analysts
Consensus
LowTarget PriceHigh
56.0067.3387.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Bhp Billiton's intrinsic value based on its ongoing forecasts of Bhp Billiton's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Bhp Billiton's closest peers. When choosing an evaluation method for Bhp Billiton, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Bhp Billiton Investments

4.6 Billion

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Bhp Billiton Valuation Drivers Correlation

Many accounts on the financial statements of Bhp Billiton are highly interrelated and sometimes correlated. Consequently, when conducting Bhp Billiton's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Bhp Billiton
Click cells to compare fundamentals

Bhp Billiton Valuation Trend

Knowing Bhp Billiton's actual value is paramount for traders to make sound investment determinations. Bhp Billiton's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Bhp Billiton's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Bhp Billiton's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Bhp Billiton Market Cap

Bhp Billiton is number one stock in market capitalization category among related companies. Market capitalization of Other Industrial Metals & Mining industry is currently estimated at about 1.32 Trillion. Bhp Billiton retains roughly 146.2 Billion in market capitalization claiming about 11% of all equities under Other Industrial Metals & Mining industry.
Capitalization  Revenue  Valuation  Workforce  Total debt

Bhp Billiton Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Bhp Billiton's current stock value. Our valuation model uses many indicators to compare Bhp Billiton value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Bhp Billiton competition to find correlations between indicators driving Bhp Billiton's intrinsic value. More Info.
Bhp Billiton is number one stock in last dividend paid category among related companies. It is number one stock in beta category among related companies totaling about  0.11  of Beta per Last Dividend Paid. The ratio of Last Dividend Paid to Beta for Bhp Billiton is roughly  8.97 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Bhp Billiton by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Bhp Billiton's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Bhp Billiton's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Bhp Billiton's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Bhp Billiton and how it compares across the competition.

About Bhp Billiton Valuation

The equity valuation mechanism determines the current worth of Bhp Billiton on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Bhp Billiton. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Bhp Billiton based exclusively on its fundamental and basic technical indicators. By analyzing Bhp Billiton's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Bhp Billiton's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Bhp Billiton. We calculate exposure to Bhp Billiton's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Bhp Billiton's related companies.
Last ReportedProjected for 2022
Gross Profit51.2 B48 B
Profit Margin 0.18  0.16 
BHP Group Limited operates as a resources company in Australia, Europe, China, Japan, India, South Korea, rest of Asia, North America, South America, and internationally. The company was founded in 1851 and is headquartered in Melbourne, Australia. Bhp Billiton operates under Other Industrial Metals Mining classification in the United States and is traded on New York Stock Exchange. It employs 40110 people.

Bhp Billiton Quarterly Enterprise Value

159.77 Billion

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Bhp Billiton's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Bhp Billiton's value is low or high relative to the company's performance and growth projections. Determining the market value of Bhp Billiton can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Bhp Billiton represents a small ownership stake in the entity. As a stockholder of Bhp Billiton, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Bhp Billiton Dividends Analysis For Valuation

Please note that Bhp Billiton has scaled down on payment of dividends at this time. Bhp Billiton Accumulated Retained Earnings Deficit are very stable at the moment as compared to the past year. Bhp Billiton reported last year Accumulated Retained Earnings Deficit of 42.1 Billion. As of 25th of June 2022, Price to Earnings Ratio is likely to grow to 20.18, while Earning Before Interest and Taxes EBIT is likely to drop about 17.6 B.
There are various types of dividends Bhp Billiton can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Bhp Billiton shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Bhp Billiton directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Bhp Billiton pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Bhp Billiton by the value of the dividends paid out.

Bhp Billiton Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Bhp Billiton does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.86
Earnings Quarterly Growth143.60%
Revenue Growth27.50%
Payout Ratio97.19%
Enterprise Value To Ebitda4.50
Earnings Growth143.30%
Enterprise Value To Revenue2.66

Bhp Billiton Current Valuation Indicators

Valuation refers to the process of determining the present value of Bhp Billiton and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Bhp Billiton we look at many different elements of the entity such as Bhp Billiton's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Bhp Billiton's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Bhp Billiton's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Bhp Billiton, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Bhp Billiton's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Bhp Billiton's worth.
Continue to Trending Equities. Note that the Bhp Billiton information on this page should be used as a complementary analysis to other Bhp Billiton's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Money Managers module to screen money managers from public funds and ETFs managed around the world.

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When running Bhp Billiton price analysis, check to measure Bhp Billiton's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Bhp Billiton is operating at the current time. Most of Bhp Billiton's value examination focuses on studying past and present price action to predict the probability of Bhp Billiton's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Bhp Billiton's price. Additionally, you may evaluate how the addition of Bhp Billiton to your portfolios can decrease your overall portfolio volatility.
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Is Bhp Billiton's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Bhp Billiton. If investors know Bhp Billiton will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Bhp Billiton listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
1.43
Market Capitalization
194.2 B
Quarterly Revenue Growth YOY
0.28
Return On Assets
0.2
Return On Equity
0.33
The market value of Bhp Billiton is measured differently than its book value, which is the value of Bhp Billiton that is recorded on the company's balance sheet. Investors also form their own opinion of Bhp Billiton's value that differs from its market value or its book value, called intrinsic value, which is Bhp Billiton's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Bhp Billiton's market value can be influenced by many factors that don't directly affect Bhp Billiton's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Bhp Billiton's value and its price as these two are different measures arrived at by different means. Investors typically determine Bhp Billiton value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bhp Billiton's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.