BHP Historical Valuation
| BHP Stock | USD 49.63 0.19 0.38% |
Some fundamental drivers such as market cap or BHP Group enterprice value can be analyzed from historical perspective to project value of the company into the future. Some investors analyze BHP Group Limited valuation indicators such as Working Capital of 0.0 or Enterprise Value of 18.7 B to time the market or to short-sell their positions based on the trend in valuation ratios. It is a perfect tool to project the direction of BHP Group's future value.
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About BHP Valuation Data Analysis
Valuation is the financial process of determining what BHP Group is worth. BHP Group valuation ratios put that insight into the context of a company's share price, where they serve as useful tools for evaluating and utilizing investment potential. BHP Group valuation ratios help investors to determine whether BHP Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in BHP with respect to the benefits of owning BHP Group security.
BHP Group Valuation Data Chart
Enterprise Value
Enterprise Value (or EV) is usually referred to as BHP Group theoretical takeover price. In the event of an acquisition, an acquirer would have to take on BHP Group Limited debt, but would also pocket its cash. Enterprise Value is more accurate representation of BHP Group value than its market capitalization because it takes into account all of BHP Group Limited existing debt. A measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization that includes the market capitalization, plus total debt, minority interest and preferred shares, minus total cash and cash equivalents.Pair Trading with BHP Group
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if BHP Group position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BHP Group will appreciate offsetting losses from the drop in the long position's value.Moving together with BHP Stock
| 0.65 | MP | MP Materials Corp | PairCorr |
| 0.66 | VALE | Vale SA ADR | PairCorr |
| 0.66 | VZLA | Vizsla Resources Corp | PairCorr |
Moving against BHP Stock
| 0.53 | LZM | Lifezone Metals | PairCorr |
| 0.46 | NVAWW | Nova Minerals Limited | PairCorr |
| 0.44 | NVA | Nova Minerals Limited | PairCorr |
| 0.43 | GRFX | Graphex Group Limited | PairCorr |
| 0.41 | IPX | IperionX Limited American | PairCorr |
The ability to find closely correlated positions to BHP Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace BHP Group when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back BHP Group - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling BHP Group Limited to buy it.
The correlation of BHP Group is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as BHP Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if BHP Group Limited moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for BHP Group can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Tools for BHP Stock Analysis
When running BHP Group's price analysis, check to measure BHP Group's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy BHP Group is operating at the current time. Most of BHP Group's value examination focuses on studying past and present price action to predict the probability of BHP Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move BHP Group's price. Additionally, you may evaluate how the addition of BHP Group to your portfolios can decrease your overall portfolio volatility.