Latest Ratios: P/E Ratio 20.7x · EV/EBITDA 6.6x · ROE 18.1%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $202.9B | $212.0B | $122.2B | $144.9B | $151.4B | $142.4B | $164.6B | $112.4B | $134.6B | $119.0B | $84.7B |
| Enterprise Value | $210.7B | $219.8B | $134.8B | $152.7B | $161.3B | $141.6B | $170.3B | $126.0B | $143.8B | $129.9B | $101.0B |
| P/E Ratio → | 20.70 | 21.58 | 13.51 | 18.30 | 11.70 | 7.04 | 14.24 | 14.31 | 15.61 | 17.98 | 13.34 |
| P/S Ratio | 3.45 | 3.61 | 2.38 | 2.60 | 2.81 | 2.19 | 2.87 | 2.87 | 3.02 | 2.76 | 2.36 |
| P/B Ratio | 3.61 | 3.76 | 2.34 | 2.95 | 3.12 | 2.92 | 2.96 | 2.15 | 2.60 | 1.96 | 1.35 |
| P/FCF | 17.01 | 17.77 | 13.17 | 12.23 | 13.03 | 5.47 | 7.68 | 13.94 | 12.52 | 8.83 | 6.75 |
| P/OCF | 9.32 | 9.73 | 6.55 | 7.01 | 8.09 | 4.43 | 6.04 | 7.16 | 7.53 | 6.45 | 5.04 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.74 | 2.63 | 2.74 | 3.00 | 2.18 | 2.97 | 3.22 | 3.23 | 3.01 | 2.81 |
| EV / EBITDA | 6.65 | 6.93 | 5.39 | 6.69 | 5.76 | 3.56 | 5.57 | 6.87 | 6.55 | 5.83 | 5.39 |
| EV / EBIT | 8.26 | 8.96 | 7.24 | 6.86 | 7.66 | 4.35 | 5.88 | 9.42 | 8.79 | 8.35 | 8.13 |
| EV / FCF | — | 18.42 | 14.53 | 12.89 | 13.88 | 5.43 | 7.95 | 15.62 | 13.38 | 9.64 | 8.05 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 75.6% | 75.6% | 82.2% | 82.2% | 79.7% | 85.7% | 86.5% | 81.1% | 82.8% | 84.8% | 82.6% |
| Operating Margin | 43.4% | 43.4% | 38.0% | 31.5% | 42.6% | 52.4% | 44.6% | 34.9% | 36.2% | 37.1% | 34.9% |
| Net Profit Margin | 16.7% | 16.7% | 17.6% | 14.2% | 24.0% | 47.5% | 19.7% | 20.3% | 18.6% | 8.6% | 16.4% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 18.1% | 18.1% | 17.8% | 16.2% | 26.6% | 59.2% | 21.0% | 15.3% | 14.8% | 6.0% | 9.6% |
| ROA | 8.5% | 8.5% | 8.5% | 7.8% | 13.2% | 30.3% | 10.5% | 7.7% | 7.8% | 3.2% | 5.0% |
| ROIC | 29.7% | 29.7% | 24.0% | 22.8% | 32.3% | 46.8% | 30.1% | 16.2% | 18.2% | 15.9% | 11.4% |
| ROCE | 25.7% | 25.7% | 21.5% | 20.6% | 28.6% | 39.9% | 27.8% | 15.3% | 17.3% | 15.7% | 11.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.47 | 0.47 | 0.47 | 0.41 | 0.46 | 0.34 | 0.38 | 0.52 | 0.48 | 0.44 | 0.49 |
| Debt / EBITDA | 0.83 | 0.83 | 0.98 | 0.88 | 0.80 | 0.41 | 0.69 | 1.47 | 1.13 | 1.20 | 1.63 |
| Net Debt / Equity | — | 0.14 | 0.24 | 0.16 | 0.20 | -0.02 | 0.10 | 0.26 | 0.18 | 0.18 | 0.26 |
| Net Debt / EBITDA | 0.25 | 0.25 | 0.50 | 0.34 | 0.35 | -0.02 | 0.19 | 0.74 | 0.42 | 0.49 | 0.87 |
| Debt / FCF | — | 0.65 | 1.36 | 0.66 | 0.85 | -0.03 | 0.27 | 1.69 | 0.86 | 0.81 | 1.30 |
| Interest Coverage | 11.63 | 11.63 | 20.34 | 19.58 | 24.31 | 63.69 | 55.70 | 14.96 | 14.69 | 14.06 | 11.82 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.88 | 1.88 | 1.46 | 1.70 | 1.23 | 1.69 | 1.63 | 1.45 | 1.89 | 2.51 | 1.85 |
| Quick Ratio | 1.48 | 1.48 | 1.11 | 1.29 | 0.95 | 1.40 | 1.36 | 1.17 | 1.58 | 2.24 | 1.53 |
| Cash Ratio | 1.13 | 1.13 | 0.78 | 0.88 | 0.65 | 1.04 | 0.93 | 0.91 | 1.27 | 1.15 | 1.25 |
| Asset Turnover | — | 0.48 | 0.47 | 0.54 | 0.53 | 0.68 | 0.53 | 0.37 | 0.44 | 0.39 | 0.31 |
| Inventory Turnover | 2.18 | 2.18 | 1.65 | 1.70 | 2.10 | 1.89 | 1.75 | 1.80 | 2.00 | 1.74 | 1.70 |
| Days Sales Outstanding | — | 31.33 | 33.19 | 35.96 | 31.16 | 30.42 | 38.63 | 31.36 | 28.35 | 26.20 | 30.78 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.3% | 3.2% | 5.2% | 5.3% | 8.8% | 12.5% | 4.8% | 6.1% | 8.5% | 4.4% | 3.4% |
| Payout Ratio | 68.7% | 68.7% | 70.9% | 97.2% | 102.7% | 57.8% | 69.9% | 86.4% | 137.2% | 140.9% | 49.6% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.8% | 4.6% | 7.4% | 5.5% | 8.5% | 14.2% | 7.0% | 7.0% | 6.4% | 5.6% | 7.5% |
| FCF Yield | 5.9% | 5.6% | 7.6% | 8.2% | 7.7% | 18.3% | 13.0% | 7.2% | 8.0% | 11.3% | 14.8% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.1% | 0.1% | 0.1% | 3.9% | 0.1% | 0.1% |
| Total Shareholder Yield | 3.3% | 3.2% | 5.2% | 5.3% | 8.8% | 12.6% | 4.9% | 6.2% | 12.3% | 4.5% | 3.6% |
| Shares Outstanding | — | $2.5B | $2.5B | $2.5B | $2.5B | $2.5B | $2.5B | $2.5B | $2.6B | $2.7B | $2.7B |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying BHP stock.
BHP Group Limited's current P/E ratio is 20.7x. The historical average is 13.6x. This places it at the 85th percentile of its historical range.
BHP Group Limited's current EV/EBITDA is 6.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.8x.
BHP Group Limited's return on equity (ROE) is 18.1%. The historical average is 18.2%.
Based on historical data, BHP Group Limited is trading at a P/E of 20.7x. This is at the 85th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
BHP Group Limited's current dividend yield is 3.32% with a payout ratio of 68.7%.
BHP Group Limited has 75.6% gross margin and 43.4% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
BHP Group Limited's Debt/EBITDA ratio is 0.8x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Commodity price volatility
Premium Multiples Amid Cycle Normalization
As per BHP's current valuation metrics, the P/E ratio of 23.63 and forward P/E of 17.12 suggest that the market anticipates earnings growth, yet the PEG of 8.42 indicates this growth may be priced expensively compared to historical cycles.
The valuation premium relative to peers like Rio Tinto (P/E 15.70) appears driven by BHP's superior asset quality and balance sheet, which offer downside protection in commodity downturns. However, the high PEG ratio warrants caution, as it implies limited margin of safety if earnings growth decelerates further due to softening iron ore prices.
Margin Compression in Price Downturn
According to BHP's financial statements, gross margins in 2026Q4 stood at 35.8%, a sharp decline from peaks above 120% in 2022, which suggests that pricing headwinds are outweighing cost controls in the current cycle.
Operating margins remain robust at 35.8% due to effective cost management, but net margins have compressed to 13.6%, reflecting increased non-operating items and tax impacts. Investors should monitor whether the normalization of margins from super-cycle highs is cyclical or structural, particularly given rising C1 unit costs in Australian operations.
ROIC Contraction Amid Capital Intensity
As reported in BHP's quarterly reports, the return on invested capital has fallen to 12.0% in 2026Q4 from 26.4% in 2022Q4, indicating that the company's capital allocation may be less effective in the current price environment.
The decline in ROIC is driven by lower net margins and increased capital expenditure for growth projects like Jansen, which may temporarily dilute returns. However, BHP's historical ability to generate double-digit ROIC across cycles suggests this could be a cyclical trough rather than a permanent erosion of capital efficiency.
Working Capital Management Holds Steady
Based on BHP's reported working capital metrics, the cash conversion cycle decreased to 13 days in 2026Q4 from 28 days a year earlier, suggesting better management of receivables, inventory, and payables to preserve cash flow.
Asset turnover remains stable at 0.26, consistent with the capital-intensive nature of mining, while improvements in CCC indicate that BHP is maintaining supplier leverage without compromising liquidity. This efficiency is critical for supporting dividend payments and funding capex during periods of volatile cash flows.
Valuation Gap vs. Rio Tinto Narrows
According to peer comparison data, BHP's P/E of 23.63 trades at a premium to Rio Tinto's 15.70, but this is supported by a lower debt-to-equity ratio of 0.48, which may justify the valuation gap.
BHP's valuation premium appears structural, reflecting lower jurisdictional risk and a stronger balance sheet compared to peers. However, Vale's higher dividend yield of 5.9% versus BHP's 3.0% could appeal to income investors, narrowing the relative attractiveness if BHP's growth prospects do not materialize.
Gross Margin Misleading in Cyclical Business
Based on BHP's financial disclosures, the gross margin of 82.21% is commonly used but obscures the impact of non-cash charges like depreciation, making the C1 unit cost a more reliable metric for assessing operational efficiency.
Gross margin fails to account for the substantial fixed costs inherent in mining, such as depreciation and royalties, which can distort the true cash cost profile. Analysts should focus on C1 unit costs in the iron ore segment, as they provide a clearer picture of cost-competitiveness during commodity price downturns.