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BHP Group (XSWX:BLT) E10 : CHF1.22 (As of Dec. 2021)


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What is BHP Group E10?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

BHP Group's adjusted earnings per share data for the fiscal year that ended in Jun. 2021 was CHF2.024. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is CHF1.22 for the trailing ten years ended in Jun. 2021.

Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

As of today (2024-04-29), BHP Group's current stock price is CHF 24.56. BHP Group's E10 for the fiscal year that ended in Jun. 2021 was CHF1.22. BHP Group's Shiller PE Ratio of today is 20.13.


BHP Group E10 Historical Data

The historical data trend for BHP Group's E10 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 E10 Chart

BHP Group Annual Data
Trend Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.98 1.83 1.81 2.10 1.22

BHP Group Semi-Annual Data
Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21
E10 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 - 2.10 - 1.22 -

Competitive Comparison of BHP Group's E10

For the Other Industrial Metals & Mining subindustry, BHP Group's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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 Shiller PE Ratio Distribution in the Metals & Mining Industry

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

* The bar in red indicates where BHP Group's Shiller PE Ratio falls into.



BHP Group E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

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.

For example, BHP Group's adjusted earnings per share data for the fiscal year that ended in Jun. 2021 was:

Adj_EPS=Earnings per Share (Diluted) /CPI of Jun. 2021 (Change)*Current CPI (Jun. 2021)
=2.024/111.4000*111.4000
=2.024

Current CPI (Jun. 2021) = 111.4000.

BHP Group Annual Data

per_share_eps CPI Adj_EPS
201206 2.771 95.600 3.229
201306 1.961 98.000 2.229
201406 2.321 99.800 2.591
201506 0.334 100.100 0.372
201606 -1.163 101.000 -1.283
201706 1.069 103.500 1.151
201806 0.687 105.900 0.723
201906 1.580 107.900 1.631
202006 1.494 108.800 1.530
202106 2.024 111.400 2.024

Add all the adjusted EPS together and divide 10 will get our e10.


BHP Group  (XSWX:BLT) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

BHP Group's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=24.56/1.22
=20.13

* 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.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


BHP Group E10 Related Terms

Thank you for viewing the detailed overview of BHP Group's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


BHP Group (XSWX:BLT) Business Description

Traded in Other Exchanges
N/A
Address
160 Victoria Street, Nova South, London, GBR, SW1E 5LB
BHP is a leading global diversified miner supplying iron ore, copper, oil, gas, and metallurgical. The merger of BHP Limited (now BHP Ltd.) and Billiton PLC (now BHP PLC) created the present-day BHP. Shareholders in each company have equivalent economic and voting rights in BHP as a whole and in 2022 voted to reunify the dual listed structure. Major assets include Pilbara iron ore, Queensland coking coal, Escondida copper and conventional petroleum assets, principally in Australia and the Gulf of Mexico. Onshore U.S. oil and gas assets were sold in 2018 and the remaining Petroleum assets are likely to be spun off and merged with Woodside.

BHP Group (XSWX:BLT) Headlines

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