Financial Analysis and Valuation for BHP Billiton and Competitor Overview

The study aims to present the recommendations for BHP Billiton in terms of accounting analysis, financial analysis and forecasting. The study has selected the competitor as Newcrest Mining which is also listed under ASX top 50 list of companies.

Running head: FINANCIAL ANALYSIS AND VALUATION
Financial Analysis and Valuation
Name of the Student
Name of the University
Authors Note
Course ID

1FINANCIAL ANALYSIS AND VALUATION
Executive Summary
The main excerpts of the study are based on financial valuation analysis for BHP Billiton and
its industry competitors. The study has encompassed sections such as forms economy and
overview of the background. It has also suggested about Competitor overview and
background, accounting policies and assessment of overall accounting strategy. The financial
analysis includes competition of the financial ratios along with performing cash analysis. The
overall outcomes have stated that BHP Billiton’s financial assets, cash flows and composition
of risk and return ratios are in a much better position than its contemporaries such as
Newcrest Mining. The forecasting and analysis have also suggested a WACC rate which is
the main rationale for investment in BHP Billiton.

2FINANCIAL ANALYSIS AND VALUATION
Table of Content
s
Introduction and Overview........................................................................................................4
Firm overview and background.............................................................................................4
Industry / Economy overview and background.....................................................................4
Competitor overview and background...................................................................................4
Accounting Analysis..................................................................................................................4
Key accounting policies.........................................................................................................5
Assessing accounting flexibility............................................................................................5
Accounting Strategy...............................................................................................................5
Quality of disclosure..............................................................................................................6
Red flags identification..........................................................................................................6
Accounting implementation...................................................................................................7
Financial Analysis......................................................................................................................7
Initial Ratios – Traditional decomposition (3 factor).............................................................7
Additional decomposition analysis......................................................................................12
Asset Management and Debt and Safety.............................................................................14
Cash Flow analysis...............................................................................................................14
Forecasting...............................................................................................................................17
Key forecast variables and prior year values.......................................................................17
Main Scenario – forecasts....................................................................................................17

3FINANCIAL ANALYSIS AND VALUATION
Scenario analysis – alternative forecasts..............................................................................17
Valuation..................................................................................................................................18
Cost of Capital......................................................................................................................18
Model – main model and scenario analysis.........................................................................20
Diagnostics...........................................................................................................................21
Model Interpretation.............................................................................................................21
Conclusion and recommendations...........................................................................................22
References................................................................................................................................23

4FINANCIAL ANALYSIS AND VALUATION
Introduction and Overview
The study aims to present the recommendations for BHP Billiton in terms of
accounting analysis, financial analysis and forecasting. The study has selected the competitor
as Newcrest Mining which is also listed under ASX top 50 list of companies.
Firm overview and background
BHP Billiton headquartered in Melbourne Australia is identified as a global contender
in the field of resources. The main operations include extraction of oil, minerals and gas and
sell it on a global platform. The main strategies include cost efficiency, limited race,
attractive return, improving safety, value and flexibility. The capital Management is done
with capital allocation framework for maximising the value of every dollar earned for the
shareholders (BHP, 2018).
Industry / Economy overview and background
Mining industry in Australia is considered as one of the primary industries thereby
contributing a significant share to the economy. The Australian mining services associated
with technology exports are predicted to be more than $ 2 billion annually. The Australian
Labour Party has incorporated the policy of “no new uranium mines” minimise the overall
impact of mining on environment (Australian Mining, 2018).
Competitor overview and background
The industry comparison has been performed by selecting Newcrest Mining Ltd as the
potential competitor of BHP Billiton. Newcrest is recognised as one of the world’s largest
gold mining companies. The main operations are based in Cadia Valley, Telfer, Lihir and
Gosowong (Newcrest.com.au, 2018).
Accounting Analysis

5FINANCIAL ANALYSIS AND VALUATION
Key accounting policies
The accounting policy on exploration expense ensures that the portion of exploration
expenditure is not capitalised under PPE. All the critical accounting policies identified by
BHP Billiton is depicted in areas of taxation, inventories, development expenditure,
overburdened removal cost, depreciation of PPE, impairments of current assets, closure and
rehabilitation provisions (Renz, 2016). Moreover, as per the relevant disclosures under IFRS
the financial results and position is assessed appropriately. The choice of the accounting
policy pertaining to capital markets such as RAC is based on the practices, compliance and
areas of judgement for adhering to the legal requirements and external audit (Finkler, Smith,
Calabrese & Purtell, 2016).
Assessing accounting flexibility
The accounting flexibility aspect can be depicted under on for US value and
flexibility section. The regular review of the portfolio with the onshore US assets are seen
with non-core and forcing options for quality acreage. This is done to maximise the overall
value and discipline of larger completions such as acreage, swaps, gas hedging and
divestments. Even with the capital Management the balance sheet of the company provides
stable and flexible choices to the management. The capital and exploration expenditure were
reduced by 32% in FY 2017. This was possible by efficient capital projects exercised with
flexibility in the onshore US projects (Barr & McClellan, 2018).
Accounting Strategy
Implementation of accounting strategy by the company is mainly inferred in the areas
of cost efficiency focus such as reducing the overall cost by 40% since FY 2012. In addition
to this, the latent capacity attractiveness is evident with exploring further opportunities of
optimising and debottlenecking the existing rail, mine, processing facilities and rigs. The
accounting strategy further aims for receiving timely value and return. This is done by

6FINANCIAL ANALYSIS AND VALUATION
investigating the best ways to realise the value of the project as per the best interest of the
shareholders (Balazs, Liu-Barker, Foiles, Thomas & Lee, 2016).
Quality of disclosure
The quality of the disclosure can be ascertained with accuracy in its external drivers
such as competitive elements, economic, social, technical and regulatory policies. In addition
to this, there is a significant disclosure pertaining to strategy objectives, governance, risk,
immigration and business model (Karadag, 2015). The internal context of the disclosures
seen with accuracy and financial assets, physical assets, customers, innovation, processes and
supply chain. Similarly, the performance component is also adequately declared with
environmental, said mental and operational performance. The disclosure is seen to be
accurate in nature with accurate liquidity analysis it is identified with current ratio, quick
ratio and cash issue (McKinney, 2015).
Red flags identification
The sources of red flag areas need to be identified with external risk factors such as
fluctuation in the prices of the commodities and overall impact with the ongoing global
economic volatility which may have negative impact on the financial performance. In
addition to this the financial results may also get affected in a negative manner with
fluctuations of exchange rate (Petty et al., 2015). The external red flag areas and we also seen
with degrees in Chinese demand. The Chinese market is considered as global demand driving
aspect for materials over the past decade for BHP Billiton. There may be several judicial
actions taken by the government and Australian community which may have detrimental
impact on the operations and significant infrastructure such as rail, power and water (Attig,
Boubakri, El Ghoul & Guedhami, 2016).

7FINANCIAL ANALYSIS AND VALUATION
Accounting implementation
In order to mitigate the issues of exchange rates, the risk management approach is
depicted with diversification of portfolio of commodities, geographies and currencies in
terms of minimising the overall volatility. Therefore, the risk management strategy of BHP
Billiton includes market, currency and commodity risk. Such risks are managed with
continuously reviewing the information with stock exchanges and overseeing the overall
process for ensuring the rates are changed and disclosed in a timely, accurate and complete
manner in the financial statement (Banerjee, Duflo, Imbert, Mathew & Pande, 2016).
Financial Analysis
Initial Ratios – Traditional decomposition (3 factor)
Profitability Ratios:
BHP Billiton Newcrest Mining
Particulars` 2017 2016 2017 2016
$m $m $m $m
Profit for the year A 6222.0 -6207.0 319.0 355.0
Revenue B 38285.0 30912.0 3477.0 3295.0
Total Assets C 117006.0 118953.0 11583.0 1191.0
Total Equity D 62726.0 60071.0 7534.0 7120.0
Net Profit Margin E= A/B 16.25% -20.08% 9.17% 10.77%
Return on Equity (ROE) F=A/D 9.92% -10.33% 4.23% 4.99%
Return on Assets G=A/C 5.32% -5.22% 2.75% 29.81%
Table: Profitability Ratios
(Source: Bhp.com, 2018)
The computation of three factor approach has been considered with ROA, ROE,
Leverage, turnover and margins for both BHP Billiton and Newcrest Mining. The main
information is extracted from the annual report of 2017 for both the companies.

8FINANCIAL ANALYSIS AND VALUATION
2017 2016
-25.00%
-20.00%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00% 16.25%
-20.08%
9.17% 10.77%
Net Profi t Margin
BHP Billiton Newcrest Mining
2017 2016
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
5.32%
-5.22%
2.75%
29.81%
Return on Assets (ROA)
BHP Billiton Newcrest Mining
2017 2016
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00% 9.92%
-10.33%
4.23% 4.99%
Return on Equity (ROE)
BHP Billiton Newcrest Mining
Figure: Profitability Ratios
(Source: Bhp.com, 2018)
The graphical representation of the companies and clearly shows that in terms of
return on assets Newcrest Mining have shown a considerable improvement in compared to
BHP Billiton. However, BHP Billiton has been able to maintain a better return on equity and
net profit margins. This suggests that it has been able to better utilise the earnings from shares
in compared to its industry rivals such as Newcrest (Martin, 2016).

9FINANCIAL ANALYSIS AND VALUATION
Financial Leverage Ratio:
BHP Billiton Newcrest Mining
Particulars` 2017 2016 2017 2016
$m $m $m $m
Total Assets A 117006.0 118953.0 11583.0 1191.0
Total Equity B 62726.0 60071.0 7534.0 7120.0
Total Liabilities C 54280.0 58882.0 4049.0 4071.0
Debt-to-Equity Ratio D=C/B 0.87 0.98 0.54 0.57
Debt Ratio E=C/A 0.464 0.495 0.350 3.418
Equity Ratio F=B/A 0.536 0.505 0.650 5.978
Table: Financial Leverage Ratio
(Source: Bhp.com, 2018)
The important component of financial leverage ratio is depicted with the computation
of debt-to-equity ratio, that ratio and equity ratio.
2017 2016
0.00
0.20
0.40
0.60
0.80
1.00
1.20 0.87 0.98
0.54 0.57
Debt-to-Equity Rati o
BHP Billiton Newcrest Mining
2017 2016
0.000
0.500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
0.464 0.4950.350
3.418
Debt Ratio
BHP Billiton Newcrest Mining
2017 2016
0.000
2.000
4.000
6.000
8.000
0.536 0.5050.650
5.978
Equity Rati o
BHP Billiton Newcrest Mining

10FINANCIAL ANALYSIS AND VALUATION
Figure: Financial Leverage Ratio
(Source: Bhp.com, 2018)
The graphical assessment of the information clearly depicts that both the companies
have taken significant initiatives in reducing the overall debt burden from 2016 to 2017.
Therefore, there is less reliance on debt instruments for financing its assets.
Efficiency Ratio:
BHP Billiton Newcrest Mining
Particulars` 2017 2016 2017 2016
$m $m $m $m
Total Assets A 117006.0 118953.0 11583.0 1191.0
Fixed Assets B 76261.0 74207.0 3784.0 1006.0
Revenue C 38285.0 30912.0 3477.0 3295.0
Trade & Other Receivables D 2836.0 3155.0 88.0 134.0
Total Asset Turnover Ratio E=C/A 0.33 0.26 0.30 2.77
Fixed Asset Turnover Ratio F=C/B 0.50 0.42 0.92 3.28
Receivables Turnover Ratio G=C/D 7.41% 10.21% 2.53% 4.07%
Table: Efficiency Ratio
(Source: Bhp.com, 2018)
The analysis of efficiency ratio was computed for evaluating the third factor which is
related to the assessment of asset turnover ratio, receivables turnover ratio and fixed assets
turnover ratio.

11FINANCIAL ANALYSIS AND VALUATION
2017 2016
0.00
0.50
1.00
1.50
2.00
2.50
3.00
0.33 0.260.30
2.77
Total Asset Turnover
Rati o
BHP Billiton Newcrest Mining
2017 2016
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
7.41%
10.21%
2.53%
4.07%
Receivables Turnover
Ratio
BHP Billiton Newcrest Mining
2017 2016
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
0.50 0.42
0.92
3.28
Fixed Asset Turnover
Ratio
BHP Billiton Newcrest Mining
Figure: Efficiency Ratio
(Source: Bhp.com, 2018)
The graphical presentation of information shows that BHP Billiton is in a better
position for receiving the due amount from its debtors. In addition to this, the fixed asset
turnover ratio has considerably increased in case of Newcrest Mining which suggests that are
fixed asset utilisation by the company (Irimia-Dieguez, Medina-Lopez & Alfalla-Luque,
2015).
Additional decomposition analysis
Alternative approach- Liquidity Ratio

12FINANCIAL ANALYSIS AND VALUATION
BHP Billiton
Newcrest
Mining
Particulars 2017 2016 2017 2016
$m $m $m $m
Current Assets A 21056.0 17714.0 1249.0 803.0
Current Liabilities B 11366.0 12340.0 664.0 670.0
Inventory C 3673.0 3411.0 556.0 545.0
Prepayments & Other Assets D 0.0 0.0 56.0 69.0
Cash & Cash equivalents E 14153.0 10319.0 492.0 53.0
Current Ratio F=A/B 1.85 1.44 1.88 1.20
Quick Ratio G=(A-C-D)/B 1.53 1.16 0.96 0.28
Cash Ratio H=E/B 1.25 0.84 0.74 0.08
Table: Liquidity Ratio
(Source: Bhp.com, 2018)
The additional decomposition analysis performed with alternative approach which
includes computation of liquidity ratio such as current ratio, quick ratio and Cash ratio.
2017 2016
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40 1.25
0.84
0.74
0.08
Cash Ratio
BHP Billiton Newcrest Mining
2017 2016
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00 1.85
1.44
1.88
1.20
Current Rati o
BHP Billiton Newcrest Mining

13FINANCIAL ANALYSIS AND VALUATION
2017 2016
0.00
0.50
1.00
1.50
2.00 1.53
1.16
0.96
0.28
Quick Ratio
BHP Billiton Newcrest Mining
Figure: Liquidity Ratio
(Source: Bhp.com, 2018)
The graphical demonstration of information clearly suggests that the Cash ratio and
quick ratio of BHP Billiton is in a slightly better position. This shows that BHP Billiton is in
a better position financing its daily short-term expenses by maintaining better cash repository
(Nguyen, Nguyen & Yin, 2015).
Alternative approach- Market Value Ratio
BHP Billiton Newcrest Mining
Particulars 2017 2016 2017 2016
$ $ $ $
Earnings per Share (TTM) A 1.11 -1.20 0.40 0.43
Dividend per Share B 0.54 0.78 0.15 0.08
Market Value per Share C $ 23.28 $ 18.65 $ 5.62
$
5.68
Dividend Pay-out Ratio D=B/A 49% -65% 37% 17%
Dividend Yield Rate E=B/C 2.32% 4.18% 2.67% 1.32%
Price-to-Earnings Ratio (TTM) F=C/A 21.03 -15.54 13.98 13.12
Table: Market Value Ratio
(Source: Bhp.com, 2018)

14FINANCIAL ANALYSIS AND VALUATION
The market performance ratio of BHP Billiton is clearly outperforming its
competitors like Newcrest Mining Limited. The present dividend pay-out ratio of 49% is
significantly higher than the former company. The company has also increased its price to
earnings ratio from (15.54) to a whopping 21.03 (Akbas et al., 2017).
Asset Management and Debt and Safety
The relevance of the asset management ratios, debt and safety ratios has been already
mentioned in the earlier sections of the study. It needs to be discerned that Newcrest Mining
Ltd has better utilised its fixed assets to finance its creditors. On the other hand, BHP Billiton
has shown better results in terms of financing its liabilities with assets available to the
company. This has resulted in an improved debt equity ratio (Wang, 2014).
Cash Flow analysis
Particulars
2016 (in million
$) 2017 (in million $)
Cash flows from operating
activities:
Cash generated from operations 12,671 19,377
Dividends received 301 636
Interest received 128 164
Interest paid
-
830 -1,149
Settlement of cash management
related instruments - -140
Net income tax and royalty-related
taxation refunded 641 501
Net income tax and royalty-related
taxation paid
-
2,286 -2,585
Net cash flows from operating
activities 10,625 16,804
Cash flows from investing
activities:
Purchases of property, plant and
equipment
-
6,946 -4,252
Exploration expenditure
-
765 -968

15FINANCIAL ANALYSIS AND VALUATION
Exploration expenditure expensed
and included in operating cash flows 430 612
Net investment and funding of equity
accounted investments 40 -234
Proceeds from sale of assets 107 648
Proceeds from divestment of
subsidiaries, operations and joint
operations, net of their cash 166 186
Other investing
-
277 -153
Net investing cash flows from
Continuing operations
-
7,245 -4,161
Cash flows from financing
activities:
Proceeds from interest bearing
liabilities 7,239 1,577
Proceeds/(settlements) from debt
related instruments 156 36
Repayment of interest-bearing
liabilities
-
2,788 -7,120
Proceeds from ordinary shares - -
(Distributions)/contributions to/from
non-controlling interests - -16
Purchase of shares by Employee
Share Ownership Plan (ESOP)
Trusts
-
106 -108
Dividends paid
-
4,130 -2,921
Dividends paid to non-controlling
interests
-
87 -581
Net cash flows used in financing
activities 284 -9,133
Net increase/(decrease) in cash and
cash equivalents 3,664 3,510
Cash and cash equivalents at
beginning of year 6,613 10,276
Foreign currency exchange rate
changes on cash and cash equivalents
-
1 322
Cash and cash equivalents at end
of year 10,276 14,108
Table: Cash Flow Analysis of BHP Billiton
(Source: Bhp.com, 2018)

16FINANCIAL ANALYSIS AND VALUATION
The Cash flow priorities have been considered as per net cash from operating
activities, investing activities and financing activities.
2016 2017
-15,000
-10,000
-5,000
-
5,000
10,000
15,000
20,000
Comparative analysis of cash flow categories
of BHP Billiton
Net cash flows from operating
activities
Net investing cash flows from
Continuing operations
Net cash flows used in
financing activities
Figure: Cash Flow Analysis of BHP Billiton
(Source: Bhp.com, 2018)
The graphical demonstration of information for the Cash flow analysis of BHP
Billiton clearly shows that there is a significant increase in the net cash flows from the
operating activities. This is mainly a resultant of cash generated from the operating activities
amounting to $ 19,377m and dividends of $ 636m. However, in all the other areas there is a
significant decrease in cash flows of the company (Chan & Rate, 2018).

17FINANCIAL ANALYSIS AND VALUATION
Forecasting
Key forecast variables and prior year values
The Key forecast variables have been considered with an analysis of main scenarios
and implementing alternative forecasts plans. The Key judgements of forecasting is also
depicted with exploration activities. The company has an enormously considered new
investments for managing risk associated to forecasting impacts of climate change
(Ashmarina, Zotova & Smolina, 2016).
Main Scenario – forecasts
The main scenario forecasts have been explained as per increasing nature of price to
earnings ratio and dividend yield in the future years. This depiction is done after significant
comparison of the values with Newcrest Mining.
Scenario analysis – alternative forecasts
The high-quality scenario analysis is resembled with portfolio evaluation. This is seen
to forecast the subject under uncertainty for using rapid technology and policy changes.
These can be referred to the previous findings which are stated as follows:
1. The forecast of Cash generated from operations is depicted with an increasing trend in
the future. This is evident with an increase of cash from operations increase from $
12,671 to $ 19,377.
2. Net investing cash flows from Continuing operations is also discerned to increase the
future years.
The low-quality scenario analysis is evident that adaptation of company with risk-based
approach for the physical impacts of climate change (Salikin, Ab Wahab & Muhammad,
2014).

18FINANCIAL ANALYSIS AND VALUATION
Valuation
Cost of Capital
Calculation of required rate of return
Month BHP Billiton
Percentage
daily change
Newcrest
Mining
Percentage
daily change
Closing Price Of
ASX
Percentage
change
closing price
of ASX
Sep-17 null null null
Oct-17 40.98 null 22.41 null 5909 null
Nov-17 41.549999 1.391% 23.309999 4.016% 5969.899902 1.031%
Dec-17 45.990002 10.686% 22.82 -2.102% 6065.100098 1.595%
Jan-18 49.02 6.588% 22.67 -0.657% 6037.700195 -0.452%
Feb-18 46.5 -5.141% 21.25 -6.264% 6016 -0.359%
Mar-18 44.43 -4.452% 19.559999 -7.953% 5759.399902 -4.265%
Apr-18 46.75 5.222% 21.15 8.129% 5982.700195 3.877%
May-18 49.779999 6.481% 20.76 -1.844% 6011.899902 0.488%
Jun-18 50.009998 0.462% 21.799999 5.010% 6194.600098 3.039%
Jul-18 52.259998 4.499% 21.629999 -0.780% 6280.200195 1.382%
Aug-18 48.040001 -8.075% 19.389999 -10.356% 6319.5 0.626%
Sep-18 49.540001 3.122% 19.360001 -0.155% 6181.200195 -2.188%
βa 0.86 βb 1.51
Risk Free
Rate (Rf) 2.24% 2.24%
(As per
Government
Bond rate in
Australia)
Expected
market
return of
BHP Billiton
(Rm1) 1.89%
Expected
market
return of
Newcrest
Mining
(Rm2) -1.18%
Required
rate of
return 1.938% -2.929%
Table: Calculation of required rate of return of BHP Billiton and Newcrest Mining

19FINANCIAL ANALYSIS AND VALUATION
(Source: As created by the author)
WACC
Re Cost of equity
Rd Cost of debt
Equit
y Market value of the firm’s equity
Debt Market value of the firm’s debt
E/V Percentage of financing that is equity
D/V Percentage of financing that is debt
TC Corporate tax rate
BHP Billiton Newcrest Mining
Re 1.9% -2.9%
Rd 2% -1%
Equit
y 62726 7534
Debt 54280 4049
E/V 0.536 0.650
D/V 0.46 0.35
TC 30% 30%
WACC 1.65% -2.19%
Table: Calculation of WACC of BHP Billiton and Newcrest Mining
(Source: As created by the author)
The weighted average cost of capital signifies the rate at which the company will pay
on an average to its security holders. This is mainly required to finance a particular asset. The
lower is the rate the better it is for the company. Therefore, as per the standard measure, a
WACC rate of less than 10% is considered to be reliable in nature (Collier, Haughwout,
Kunreuther, Michel-Kerjan & Stewart, 2016).

20FINANCIAL ANALYSIS AND VALUATION
Model – main model and scenario analysis
Model 1
Market Value of equity
Market Value of equity (MVE)
Share Price (SP) 0.001671 million
Number of Oustanding Shares (NOS) 5323 million
MVE =
SP x
NOS
MVE = 8.9 million
Table: Model 1- Market Value of equity
(Source: As created by the author)
Model 2
Fair equity value
Fair Equity Value (FEV)
Enterprise Value (EV) 117006
Net debt (ND) 54280
FEV = EV - ND
FEV = 62726 million
Table: Model 2- Fair equity value
(Source: As created by the author)
Diagnostics
This computation is also helpful in suggesting that the terminal value will be in the
best interest of the shareholders for future investment purposes. Terminal value computation
is based on perpetual growth rate of 37% and WACC of 1.65% as computer previously. The

21FINANCIAL ANALYSIS AND VALUATION
overall value of $ 1172145 is best as per industry standard which is definitely favourable for
the investors and future growth prospects.
Terminal Value
Terminal Value (TV)
Free Cash Flow (FCF) 14108
Perpetual Growth Rate (g) 37%
Weighted Average Cost of Capital (WACC) 1.65%
TV = [FCF(1+g)]/WACC-g
TV = 1172145
Table: Terminal Value of BHP Billiton
(Source: As created by the author)
Model Interpretation
The model interpretations of equity valuation suggest an optimistic scenario for the
investors. This is evident with a favourable rate of WACC and a high amount of overall
terminal value. Moreover, the equity of the company can be seen to be higher than the debt
borrowings. This reflects a positive impact on the investors.
Conclusion and recommendations
It can be concluded that despite of significant areas of drawbacks of BHP Billiton in
terms of return on assets, the company has performed significantly well in all other areas.
Therefore, based on the market performance ratios and other ratios suggesting financial
stability it is recommended for the investors to consider BHP Billiton for future investment
purposes rather than other players in the mining industry.

22FINANCIAL ANALYSIS AND VALUATION
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