BHPCAUTIOUS

BHP EV/EBITDA Analysis

9.5x

Updated 395h ago·SEC filings & market data

Key Takeaway

EV/EBITDA is the price of the entire business relative to its operating cash earnings, measured in years of profit an investor would need to recover the purchase price.

Sector Performance

29th percentile

BHP

9.5x

Sector Median

13.6x

Sector Avg

-62.3x

Prior Period

8.8x(Aug 2026)

↓ Declining

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Deep Analysis

EV/EBITDA is the price of the entire business relative to its operating cash earnings, measured in years of profit an investor would need to recover the purchase price.

At 9.5x, BHP trades below the sector median of 13.5x, putting it in the 28th percentile, meaning roughly 72% of peers carry a higher multiple. The metric is increasing over the last 8 quarters, with a quarter-over-quarter rise of +7.1% from 8.8x to 9.5x; the year-over-year change is not available. The level is still low versus peers, but the upward direction suggests the market is paying more for the same earnings, which can reduce the margin of safety. That combination of a cheap starting point and a rising multiple creates a mixed setup: there is less downside protection than a stable low multiple, but still room versus the sector. This supports the overall CAUTIOUS verdict, because the increasing valuation trend does not confirm a strong buying point.

Frequently Asked Questions

What does the EV/EBITDA tell investors about BHP?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are BHP's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: FLNC (-22.5x), EVGO (-22.6x), LSPD (-26.9x), BRZE (-29.6x), RBLX (-31.4x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.