Is BHP Group or IGO more undervalued?

As of Sep 5, 2026, BHP Group is at -42% to fair value and IGO at -77%. BHP Group is the less overvalued of the two. Model-based estimate, not financial advice.

Which has higher quality, BHP Group or IGO?

BHP Group has a quality score of 64/100 and IGO 49/100. BHP Group leads on quality.

STOCK COMPARISON

BHP Group vs IGO: Fair Value & Quality

Both stocks run through our valuation models. Here is how BHP Group (BHP) and IGO (IGO) compare, as of Sep 5, 2026.

As of Sep 5, 2026, Fair Value Calculator sees BHP Group as the less overvalued of the two: BHP Group trades at £33.45 versus a fair value of £19.35 (-42%), while IGO trades at A$8.30 versus A$1.94 (-77%).

BHP Group

BHP.LSE · GBX · Materials

-42%

upside to fair value

overvalued

Price£33.45

Fair Value£19.35

Quality64/100

IGO

IGO.AU · AUD · Materials

-77%

upside to fair value

overvalued

PriceA$8.30

Fair ValueA$1.94

Quality49/100

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Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

BHP GroupIGO

Valuation

19.8×P/E (TTM)—

3.86×P/S (TTM)8.30×

4.51×P/B1.74×

8.2×EV/EBITDA—

—PEG0.51×

−42.2%Fair value upside−76.6%

4.0%Dividend yield2.9%

£1.33Dividend per share—

Profitability

41%Operating margin-43%

1.19×EBIT margin trend (5Y)—

25%Return on equity-10%

12%Return on assets-4%

Growth

11%Revenue growth (YoY)-32%

-7.7%Avg. growth/yr (3Y)-14.5%

3.6%Avg. growth/yr (5Y)-1.9%

+6.1%Value creation/yr—

Balance & size

10.4×Interest coverage (EBIT/interest)—

0.44×Debt / equity—

$208BMarket cap$4B

weakGrowth qualityweak

BHP Group leads: 7 to 1 metric wins.

Dash = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

BHP Groupof which business quality 63 · market factors 78 IGOof which business quality 52 · market factors 64

ProfitabilityMargins and returns on capital today

Quality GrowthAre margins and returns improving?

CashflowEarnings quality: real cash, not paper profit

Fin. StrengthBalance sheet, leverage, solvency risk

InvestmentDisciplined investing over empire-building

100

Low VolatilityCalm price path (market factor)

MomentumPrice trend over the last 3–12 months (market factor)

52W MomentumDistance to the 52-week high (market factor)

Net IssuanceBuybacks instead of dilution

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model family	BHP GroupPrice £33.45	IGOPrice A$8.30
DCF Models	-19%below the price£27.19	-81%below the priceA$1.59
Earnings-Based	-25%below the price£25.15	n/a
Dividend Discount	-41%below the price£19.67	-49%below the priceA$4.24
Multiples	-14%close to the price£28.74	-88%below the priceA$1.01
Asset-Based	-82%below the price£6.10	-78%below the priceA$1.85
Growth DCF	-33%below the price£22.49	-80%below the priceA$1.64
Economic Profit	-38%below the price£20.84	n/a
Growth Earnings	-24%below the price£25.38	n/a
Minimum	-82%below the price£6.10	-88%below the priceA$1.01
Maximum	-14%close to the price£28.74	-49%below the priceA$4.24
Median	-29%below the price£23.82	-80%below the priceA$1.64
Geometric mean	-40%below the price£20.23	-78%below the priceA$1.83

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

BHP Group: 21 of 25 models see the stock below the current price.

IGO: 9 of 9 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

BHP Group

Bear £12.88Fair Value £19.35Bull £27.71

£33.45 = current price (white tick)

IGO

Bear A$1.56Fair Value A$1.94Bull A$2.34

A$8.30 = current price (white tick)

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

BHP Group · Materials

Quality score64 · Top 25%

Fair value upside-42% · below median

IGO · Materials

Quality score49 · below median

Fair value upside-77% · bottom 25%

Bottom line

BHP Group has the higher quality score (64/100).

See the full analysis →

BHP Group · IGO

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.