EV/EBITDA
Higher than 40% of Basic Materials sector peers
Updated 188h ago
Sector Performance
40th percentileBHP
9.3x
Sector Median
9.6x
Sector Avg
-152.1x
Deep Analysis
BHP’s current EV/EBITDA of 9.3x means that for every dollar of its earnings before interest, taxes, depreciation, and amortization, the company’s enterprise value (market cap plus debt minus cash) is 9.3 times that amount – a lower multiple generally suggests the stock is less expensive relative to its cash earnings.
This sits below the Basic Materials sector median of 10.5x, placing BHP in the 33rd percentile among its peers, indicating it is cheaper than about two-thirds of similar companies. The trend for this metric is not available, as the year-over-year change is listed as N/A, the quarter-over-quarter change is N/A, and there is no data for the last eight quarters. Because the EV/EBITDA is below the sector median but no trend information exists to show whether it is improving or deteriorating, investors face a neutral risk-opportunity profile: the valuation appears attractive at face value, but the lack of historical direction means no momentum can be inferred. This metric supports the overall NEUTRAL verdict on BHP, as the below-median multiple suggests potential value while the absence of trend data prevents a more decisive bullish or bearish call.
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.
How does BHP's EV/EBITDA compare to its sector?
BHP's EV/EBITDA of 9.3x compares to a Basic Materials sector median of 9.6x, placing it in the 40th percentile.
Who are BHP's closest peers by EV/EBITDA?
The closest Basic Materials peers by EV/EBITDA include: PAAS (9.3x), AEM (9.8x), RIO (8.4x), CDE (10.9x), KGC (7.8x).
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.
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9.3x
Sector Median
9.6x
Sector Avg
-152.1x
How BHP's EV/EBITDA compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.