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BHP Billiton Ltd  (NYSE:BHP) Median PS Value: $44.65 (As of Today)

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

Median P/S Value is calculated as trailing twelve months (TTM) Revenue per Share times 10-Year median P/S ratio. BHP Billiton Ltd's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2016 was $14.35. BHP Billiton Ltd's 10-Year median P/S ratio is 2.94. Therefore, the Median P/S Value for today is $44.65.

As of today, BHP Billiton Ltd's share price is $42.65. BHP Billiton Ltd's median P/S value is $44.65. Therefore, BHP Billiton Ltd's Price to Median P/S Value Ratio for today is 0.96.

NYSE:BHP' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.27   Max: 1.25
Current: 0.96

0.27
1.25

During the past 13 years, the highest Price to Median P/S Value Ratio of BHP Billiton Ltd was 1.25. The lowest was 0.27. And the median was 0.74.

NYSE:BHP's Price-to-Median-PS-Value is ranked higher than
58% of the 558 Companies
in the Global industry.

( Industry Median: 0.99 vs. NYSE:BHP: 0.96 )

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

BHP Billiton Ltd Annual Data

Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17
Median PS Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 60.11 63.38 49.89 34.55 0.00

BHP Billiton Ltd Semi-Annual Data

Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17
Median PS Value 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 Premium Member Only Premium Member Only Premium Member Only 49.89 0.00 34.55 0.00 0.00

Competitive Comparison
* 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.


Calculation

BHP Billiton Ltd's Median P/S Value for today is calculated as

Median P/S Value=Total Annual Sales / Shares Outstanding*10-Year Median P/S Ratio
=Revenue per Share (TTM)*10-Year Median P/S Ratio
=14.35*2.94
=42.19

10-Year Median P/S Ratio is 2.94.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. BHP Billiton Ltd's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2016 was $14.35.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.

BHP Billiton Ltd's Price to Median P/S Value Ratio for today is calculated as

Price to Median P/S Value=Share Price/Median P/S Value
=42.65/42.19
=1.01

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


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