DCF Tool

BHP

BHP Group Limited – Iron Ore Mining
Analysis Results
Intrinsic Value $320.16
Latest Price $50.04
Relative Value 84% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 22.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 22.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 22.8 21.3
2024 27.9 24.3
2025 34.2 27.8
2026 41.8 31.7
2027 51.2 36.2
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1010 billion. This corresponds to a present value of 670 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 141 billion. Adding in the terminal value gives a total present value of 811 billion.

There are presently 2.53 billion outstanding shares, so the intrinsic value per share is 320.16.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 28,664,000,000
Current Cash 17,236,000,000
Current Liabilities 16,919,000,000
Current Debt 2,622,000,000
Non-Cash Working Capital (NCWC) -2,869,000,000
Change in NCWC -541,000,000
EBIT 32,708,000,000
Tax Provision 10,737,000,000
Depreciation and Amortization 5,683,000,000
Capital Expenditure -6,111,000,000
Unlevered Free Cash Flow 21,141,003,923
Current Assets 26,693,000,000
Current Cash 15,246,000,000
Current Liabilities 16,403,000,000
Current Debt 2,628,000,000
Non-Cash Working Capital (NCWC) -2,328,000,000
Change in NCWC -561,000,000
EBIT 25,396,000,000
Tax Provision 11,150,000,000
Depreciation and Amortization 6,824,000,000
Capital Expenditure -7,120,000,000
Unlevered Free Cash Flow 13,028,679,281
Current Assets 21,471,000,000
Current Cash 13,426,000,000
Current Liabilities 14,824,000,000
Current Debt 5,012,000,000
Non-Cash Working Capital (NCWC) -1,767,000,000
Change in NCWC 1,151,000,000
EBIT 13,644,000,000
Tax Provision 4,774,000,000
Depreciation and Amortization 6,112,000,000
Capital Expenditure -7,640,000,000
Unlevered Free Cash Flow 8,445,648,704
Current Assets 23,373,000,000
Current Cash 15,613,000,000
Current Liabilities 12,339,000,000
Current Debt 1,661,000,000
Non-Cash Working Capital (NCWC) -2,918,000,000
Change in NCWC -10,924,000,000
EBIT 16,208,000,000
Tax Provision 5,529,000,000
Depreciation and Amortization 5,829,000,000
Capital Expenditure -7,123,000,000
Unlevered Free Cash Flow -1,964,816,399
Current Assets 35,130,000,000
Current Cash 15,871,000,000
Current Liabilities 13,989,000,000
Current Debt 2,736,000,000
Non-Cash Working Capital (NCWC) 8,006,000,000
Change in NCWC 11,228,000,000
EBIT 16,246,000,000
Tax Provision 7,007,000,000
Depreciation and Amortization 6,288,000,000
Capital Expenditure -5,853,000,000
Unlevered Free Cash Flow 20,191,847,129
Current Assets 21,056,000,000
Current Cash 14,153,000,000
Current Liabilities 11,366,000,000
Current Debt 1,241,000,000
Non-Cash Working Capital (NCWC) -3,222,000,000
Change in NCWC -2,930,000,000
EBIT 11,690,000,000
Tax Provision 4,100,000,000
Depreciation and Amortization 7,719,000,000
Capital Expenditure -4,252,000,000
Unlevered Free Cash Flow 7,583,616,934
Current Assets 17,714,000,000
Current Cash 10,319,000,000
Current Liabilities 12,340,000,000
Current Debt 4,653,000,000
Non-Cash Working Capital (NCWC) -292,000,000
Change in NCWC -256,000,000
EBIT 1,006,000,000
Tax Provision -1,052,000,000
Depreciation and Amortization 8,661,000,000
Capital Expenditure -6,946,000,000
Unlevered Free Cash Flow 2,465,000,000
Current Assets 16,369,000,000
Current Cash 6,753,000,000
Current Liabilities 12,853,000,000
Current Debt 3,201,000,000
Non-Cash Working Capital (NCWC) -36,000,000
Change in NCWC 273,000,000
EBIT 11,920,000,000
Tax Provision 2,762,000,000
Depreciation and Amortization 9,158,000,000
Capital Expenditure -12,045,000,000
Unlevered Free Cash Flow 5,219,227,408
Current Assets 22,296,000,000
Current Cash 8,803,000,000
Current Liabilities 18,064,000,000
Current Debt 4,262,000,000
Non-Cash Working Capital (NCWC) -309,000,000
Change in NCWC 1,071,000,000
EBIT 22,768,000,000
Tax Provision 7,012,000,000
Depreciation and Amortization 8,701,000,000
Capital Expenditure -16,479,000,000
Unlevered Free Cash Flow 8,881,236,733
Current Assets 19,786,000,000
Current Cash 6,097,000,000
Current Liabilities 20,372,000,000
Current Debt 5,303,000,000
Non-Cash Working Capital (NCWC) -1,380,000,000
Change in NCWC 1,453,000,000
EBIT 20,617,000,000
Tax Provision 6,797,000,000
Depreciation and Amortization 6,945,000,000
Capital Expenditure -22,277,000,000
Unlevered Free Cash Flow -1,102,966,260
Current Assets 20,451,000,000
Current Cash 4,781,000,000
Current Liabilities 22,034,000,000
Current Debt 3,531,000,000
Non-Cash Working Capital (NCWC) -2,833,000,000
Change in NCWC -1,815,000,000
EBIT 26,106,000,000
Tax Provision 7,490,000,000
Depreciation and Amortization 6,408,000,000
Capital Expenditure -19,455,000,000
Unlevered Free Cash Flow 2,750,648,423

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