Question
The mining sector in Australia rewarded many investors in the good times of mining boom. One of the popular shares in this sector was BHP
The mining sector in Australia rewarded many investors in the good times of mining boom. One of the popular shares in this sector was BHP Group Ltd (ASX: BHP). Apart from mining of iron ore the company has been pumping oil and gas from the ground in the past 50 years, but now it may be the time for them to turn off the crude taps as a result of investors' concern over environmental risk, social risk and corporate governance risk. On 22 July 2021, BHP announced the signing of a nickel supply agreement with Tesla and will collaborate with the electric carmaker on lowering carbon emissions in the battery supply chain where other large automakers are also aiming for long-term decarbonization. The BHP share was traded at $37.50 on 22 July 2020 and closed at $51.45 on 22 July 2021, representing 37% increase in share price plus a dividend yield of 4% fully franked.
Your task is to undertakea valuation for BHP share -
Apply the various valuation models and relative measures taught in this course to assess whether BHP share is correctly valued.
Your analysis should include relevant data to help a prospective investor to decide whether he should invest in this company.
Your analysis should also include the company's overall sustainability and its performance in environmental, social, and governance aspects
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