Bhp is over priced at this time with a pe ratio of 17 because all its value is based on high metal prices and future performance at presumed higher comodity prices. This means you are paying for future company performance in advance. In this volitile market, a pe ratio of 17 is un acceptable, a good correction will alway see the price fall unless profits jump considerably.
A sharp decline in comodity prices would drop profits and lenghten the pe ration to 20s in the short term and fully value the company to the extent you would need a very long term view to gain any real benifit.
Bhp is over priced at this time with a pe ratio of 17 because...
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Last
$44.39 |
Change
-0.380(0.85%) |
Mkt cap ! $225.1B | |||
| Open | High | Low | Value | Volume |
| $44.52 | $44.68 | $44.21 | $228.3M | 5.147M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 93 | $44.38 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $44.40 | 13049 | 4 |
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| Last trade - 16.10pm 05/07/2024 (20 minute delay) ? |
| BHP (ASX) Chart |