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Is the BHP share price (LON:BHP) good value at 1,727p?

Jack Brumby

Bhp (LON:BHP) is a large cap in the Metals & Mining industry. Formerly BHP Billiton Plc, this diversified mining giant is a producer of various commodities, including iron ore, metallurgical coal, copper and uranium.

Right now the BHP share price appears to represent solid value, as shown in the group's Value Rank of 68. Let's explore this in more detail.

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Digging into BHP's Value Rank

Looking at BHP's StockReport, we can see that the group has a:

  • Rolling price to book value of 2.41,
  • Trailing twelve month price to earnings ratio of 13.4
  • Trailing twelve month price to free cashflow of 10.6
  • Rolling dividend yield of 5.97%
  • Trailing twelve-month price to sales ratio of 2.57

This combination of financial traits suggests that, while BHP stock is not the cheapest, it is far from expensive at these levels and is worth considering - especially if it is exposed to other positive stock market factors as well.

Studies indicate that combining factors such as Value, Quality and Momentum is a more effective way of outperforming the market over longer time frames. That's why we have constructed our StockReports to give an instant impression of how well exposed Bhp (LON:BHP) is to these three factors. We go into greater detail on factor investing in this video

Stockopedia helps you to identify return-enhancing factors such as Quality, Value and Momentum by analysing thousands of data points every day. To find out more about you find investment opportunities and analyse your portfolios then take one of our two-week free trials and have a look around.