This report undertakes a comprehensive valuation of BHP Group, a leading resources company. It begins by calculating the company's beta, or market risk, through regression analysis of monthly stock returns against market returns, comparing the result with values from financial websites like Yahoo Finance and discussing the discrepancies. The report then delves into the application of the Capital Asset Pricing Model (CAPM) to determine the discount rate for BHP Group. Furthermore, it employs the constant dividend growth model to estimate the current stock price, detailing the model's mechanics and limitations. The analysis covers key aspects of BHP Group, including its business divisions, financial performance, and market positioning. The report highlights that the stock appears to be under-priced based on the analysis.
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