BHP Group PLC (BHP.L) WACC Analysis

As of June 15, 2025, BHP Group PLC (BHP.L) carries a Weighted Average Cost of Capital (WACC) of 7.5%. WACC reflects the blended rate BHP Group PLC must pay to both equity and debt holders.

Within that, the cost of equity is 6.9%, the cost of debt is 4.0%, and the effective tax rate is 36.2%.

Breakdown of WACC Components

• Long-term bond rate: 1.7% – 2.2%
• Equity market risk premium: 5.3% – 6.3%
• Adjusted beta: 0.96 – 1.04
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.13

What It Means for Investors

With a selected WACC of 7.5%, BHP Group PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.