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BHPLF (BHP Group) Cyclically Adjusted PB Ratio : 2.35 (As of Dec. 12, 2024)


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What is BHP Group Cyclically Adjusted PB Ratio?

As of today (2024-12-12), BHP Group's current share price is $24.80. BHP Group's Cyclically Adjusted Book per Share for the fiscal year that ended in Jun24 was $10.56. BHP Group's Cyclically Adjusted PB Ratio for today is 2.35.

The historical rank and industry rank for BHP Group's Cyclically Adjusted PB Ratio or its related term are showing as below:

BHPLF' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 1.17   Med: 2.36   Max: 3.21
Current: 2.66

During the past 13 years, BHP Group's highest Cyclically Adjusted PB Ratio was 3.21. The lowest was 1.17. And the median was 2.36.

BHPLF's Cyclically Adjusted PB Ratio is ranked worse than
79.26% of 1577 companies
in the Metals & Mining industry
Industry Median: 0.83 vs BHPLF: 2.66

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

BHP Group's adjusted book value per share data of for the fiscal year that ended in Jun24 was $8.555. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is $10.56 for the trailing ten years ended in Jun24.

Shiller PE for Stocks: The True Measure of Stock Valuation


BHP Group Cyclically Adjusted PB Ratio Historical Data

The historical data trend for BHP Group's Cyclically Adjusted PB Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

BHP Group Cyclically Adjusted PB Ratio Chart

BHP Group Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.23 2.89 2.65 2.82 2.70

BHP Group Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.65 - 2.82 - 2.70

Competitive Comparison of BHP Group's Cyclically Adjusted PB Ratio

For the Other Industrial Metals & Mining subindustry, BHP Group's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


BHP Group's Cyclically Adjusted PB Ratio Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, BHP Group's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where BHP Group's Cyclically Adjusted PB Ratio falls into.



BHP Group Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

BHP Group's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=24.80/10.56
=2.35

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

BHP Group's Cyclically Adjusted Book per Share for the fiscal year that ended in Jun24 is calculated as:

For example, BHP Group's adjusted Book Value per Share data for the fiscal year that ended in Jun24 was:

Adj_Book=Book Value per Share/CPI of Jun24 (Change)*Current CPI (Jun24)
=8.555/128.9064*128.9064
=8.555

Current CPI (Jun24) = 128.9064.

BHP Group Annual Data

Book Value per Share CPI Adj_Book
201506 11.930 99.838 15.404
201606 9.958 100.859 12.727
201706 10.514 102.809 13.183
201806 10.202 104.945 12.531
201906 9.086 106.617 10.986
202006 9.210 106.246 11.174
202106 9.883 110.332 11.547
202206 8.592 117.112 9.457
202306 8.501 124.170 8.825
202406 8.555 128.906 8.555

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


BHP Group  (OTCPK:BHPLF) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


BHP Group Cyclically Adjusted PB Ratio Related Terms

Thank you for viewing the detailed overview of BHP Group's Cyclically Adjusted PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


BHP Group Business Description

Address
171 Collins Street, Level 18, Melbourne, VIC, AUS, 3000
BHP is a global diversified miner mainly supplying iron ore and copper. The merger of BHP Limited and Billiton PLC created the present-day BHP Group. The dual-listed structure from the 2001 BHP and Billiton merger was collapsed in 2022. Major assets include Pilbara iron ore and Escondida copper. Onshore us oil and gas assets were sold in 2018 and the remaining Petroleum assets were spun off and merged with Woodside in 2022, with BHP vesting the Woodside shares it received to BHP shareholders. It purchased copper miner Oz Minerals in fiscal 2023 and is entering the potash market through the development of its Jansen project in Canada. However, due to low nickel prices, BHP is placing its nickel business on care and maintenance in late 2024.