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Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. BHP Group's annualized positive value of Interest Expense for the quarter that ended in Dec. 2025 was £1,515 Mil. BHP Group's average total debt for the quarter that ended in Dec. 2025 was £19,493 Mil. Therefore, BHP Group's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 was 7.77%.
BHP Group (CHIX:BHPl) Effective Interest Rate on Debt % Explanation
Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.
BHP Group Effective Interest Rate on Debt % Related Terms
BHP Group Effective Interest Rate on Debt % Historical Data
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The historical data trend for BHP Group's Effective Interest Rate on Debt % 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.
BHP Group Effective Interest Rate on Debt % Competitor Comparison
For the Other Industrial Metals & Mining subindustry, BHP Group's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, BHP Group's Effective Interest Rate on Debt % distribution charts can be found below:
* The bar in red indicates where BHP Group's Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data,
the Interest Expense data used here is two times the semi-annual (Dec. 2025) interest expense data.
Effective Interest Rate on Debt % is displayed in the 30-year financial page.
What does a Effective Interest Rate on Debt % of 7.77% mean?
BHP Group (CHIX:BHPL) has a Effective Interest Rate on Debt % of 7.77% as of Dec. 2025. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on BHP Group and its competitors.
Is BHP Group's Effective Interest Rate on Debt % too high?
BHP Group's current Effective Interest Rate on Debt % is 7.77%. Overall, BHP Group has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does BHP Group's Effective Interest Rate on Debt % compare to competitors?
BHP Group's Effective Interest Rate on Debt % of 7.77% can be compared against companies in the Metals & Mining industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Metals & Mining company?
A good Effective Interest Rate on Debt % depends on the Metals & Mining industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on BHP Group and its competitors. BHP Group's current Effective Interest Rate on Debt % is 7.77%. 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 £23.04, compared to a current price of £31.76 — trading 37.8% above its estimated fair value. The current Effective Interest Rate on Debt % is 7.77%. BHP Group's overall GF Score™ is 82/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For BHP Group (CHIX:BHPL), the current Effective Interest Rate on Debt % is 7.77% 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 £31.76 is trading 37.8% above its estimated GF Value™ of £23.04.
GuruFocus considers BHP Group to be Significantly Overvalued.
Key valuation signals for CHIX:BHPL:
Effective Interest Rate on Debt %: 7.77%
GF Value™: £23.04 vs. price of £31.76 (37.8% above fair value)
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.
82GF Score
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Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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