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BHP GroupCHIX:BHPL -0.92%78 Debt-to-EBITDA is 0.91 as of Dec. 2025, which is 12% below its 10-year median of 1.03. GuruFocus rates CHIX:BHPL with a GF Score™ of 78/100 and a GF Value™ of £23.10 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 594 Metals & Mining companies, BHP Group ranks better than 55.39% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for BHP Group's Debt-to-EBITDA or its related term are showing as below:
CHIX:BHPl'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.41 Med: 1.03 Max: 3.98
Current: 0.96
During the past 13 years, the highest Debt-to-EBITDA Ratio of BHP Group was 3.98. The lowest was 0.41. And the median was 1.03.
CHIX:BHPl's Debt-to-EBITDA is ranked better than 55.39% of 594
companies
in the Metals & Mining industry
Industry Median: 1.21
vs CHIX:BHPl: 0.96
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
BHP Group Debt-to-EBITDA Related Terms
BHP Group Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for BHP Group's Debt-to-EBITDA 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.
For the Other Industrial Metals & Mining subindustry, BHP Group's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, BHP Group's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where BHP Group's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is two times the quarterly (Dec. 2025) EBITDA data.
BHP Group (CHIX:BHPL) has a Debt-to-EBITDA of 0.91 as of Dec. 2025. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on BHP Group. This is 12% below median its historical median of 1.03. Over the past decade, BHP Group's Debt-to-EBITDA has ranged from 0.41 to 3.98. According to the industry distribution chart, BHP Group ranks #265 out of 594 companies in the Metals & Mining industry, placing it in the top 44.6%.
Is BHP Group's Debt-to-EBITDA too high?
BHP Group's current Debt-to-EBITDA of 0.91 is 12% below median its 10-year median of 1.03. Over the past 10 years, this metric has ranged from a low of 0.41 to a high of 3.98. The Metals & Mining industry median Debt-to-EBITDA is 1.21. BHP Group's value of 0.91 is 24.8% below this industry median. Based on the distribution chart, BHP Group ranks #265 out of 594 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, BHP Group has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does BHP Group's Debt-to-EBITDA compare to competitors?
According to the Metals & Mining industry distribution chart, BHP Group ranks #265 out of 594 companies for Debt-to-EBITDA. This puts BHP Group in the upper half of its industry. The industry median Debt-to-EBITDA is 1.21. BHP Group's value of 0.91 is 24.8% below this benchmark. Historically, BHP Group's own Debt-to-EBITDA has ranged from 0.41 to 3.98 over the past decade. While the company's 10-year median is 1.03 vs. the industry median of 1.21, BHP Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Metals & Mining company?
The median Debt-to-EBITDA among Metals & Mining companies is 1.21, based on 594 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BHP Group's current Debt-to-EBITDA of 0.91 is 24.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on BHP Group. For the Metals & Mining industry, the median Debt-to-EBITDA is 1.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BHP Group's current Debt-to-EBITDA is 0.91, which is 12% below median its own 10-year median of 1.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BHP Group stock overvalued right now?
Based on GuruFocus' analysis, BHP Group (CHIX:BHPL) is currently considered Significantly Overvalued. The stock's GF Value™ is £23.10, compared to a current price of £31.39 — trading 35.9% above its estimated fair value. The current Debt-to-EBITDA is 0.91, which is 12% below median its 10-year median of 1.03 and 24.8% below the Metals & Mining industry median of 1.21. BHP Group's overall GF Score™ is 78/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For BHP Group (CHIX:BHPL), the current Debt-to-EBITDA is 0.91 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is BHP Group (CHIX:BHPL) Overvalued in 2026?
Based on GuruFocus' analysis, BHP Group stock appears to be overvalued.
The current stock price of £31.39 is trading 35.9% above its estimated GF Value™ of £23.10.
GuruFocus considers BHP Group to be Significantly Overvalued.
Key valuation signals for CHIX:BHPL:
Debt-to-EBITDA: 0.91 (12% below median its 10-year median of 1.03)
GF Value™: £23.10 vs. price of £31.39 (35.9% above fair value)
Industry Position: 24.8% below the Metals & Mining median (#265 of 594)
No single metric tells the full story. See the CHIX:BHPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 half of the Vicuna copper joint venture in fiscal 2025. It is entering the potash market through the development of its Jansen project in Canada. However, due to low prices, BHP placed its nickel business on care and maintenance in 2024.
78GF Score
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