Is BHP Group or Rarex more undervalued?

As of Sep 6, 2026, BHP Group is at -42% to fair value and Rarex at -35%. Rarex is the less overvalued of the two. Model-based estimate, not financial advice.

Which has higher quality, BHP Group or Rarex?

BHP Group has a quality score of 64/100 and Rarex 42/100. BHP Group leads on quality.

STOCK COMPARISON

BHP Group vs Rarex: Fair Value & Quality

Both stocks run through our valuation models. Here is how BHP Group (BHP) and Rarex (REE) compare, as of Sep 6, 2026.

As of Sep 6, 2026, Fair Value Calculator sees Rarex as the less overvalued of the two: BHP Group trades at £33.45 versus a fair value of £19.35 (-42%), while Rarex trades at A$0.01 versus A$0.01 (-35%).

BHP Group

BHP.LSE · GBX · Materials

-42%

upside to fair value

overvalued

Price£33.45

Fair Value£19.35

Quality64/100

Rarex

REE.AU · AUD · Materials

-35%

upside to fair value

overvalued

PriceA$0.01

Fair ValueA$0.01

Quality42/100

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Head-to-head numbers

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

BHP GroupRarex

Valuation

19.8×P/E (TTM)—

3.85×P/S (TTM)—

4.50×P/B2.78×

8.2×EV/EBITDA—

−42.2%Fair value upside−34.6%

4.0%Dividend yield1.2%

£1.33Dividend per share—

Profitability

41%Operating margin—

1.19×EBIT margin trend (5Y)—

25%Return on equity-57%

12%Return on assets-67%

Growth

11%Revenue growth (YoY)-80%

-7.7%Avg. growth/yr (3Y)-20.5%

3.6%Avg. growth/yr (5Y)132.3%

+6.1%Value creation/yr—

Balance & size

10.4×Interest coverage (EBIT/interest)—

0.44×Debt / equity—

$208BMarket cap$10M

weakGrowth qualityweak

Even match: 3 to 3 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 Rarexof which business quality 44 · market factors 22

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	RarexPrice A$0.01
DCF Models	-19%below the price£27.19	n/a
Earnings-Based	-25%below the price£25.15	n/a
Dividend Discount	-41%below the price£19.67	n/a
Multiples	-14%close to the price£28.74	n/a
Asset-Based	-82%below the price£6.10	n/a
Growth DCF	-33%below the price£22.49	n/a
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	n/a
Maximum	-14%close to the price£28.74	n/a
Median	-29%below the price£23.82	n/a
Geometric mean	-40%below the price£20.23	n/a

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.

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)

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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

Rarex · Materials

Quality score42 · below median

Fair value upside-35% · below median

Bottom line

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

See the full analysis →

BHP Group · Rarex

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