trading 6x book, 6.2 peg and 32 forward p/e. Arent we a bit overvalued here. Look at aluminum co's like CENX or AA and they are nowhere this overvalued. I love this co. I was a fool to sell it in the 30's way back when. But is it overvalued now, especially since commodities have been the flavor of the month for 2 or more months now. There are these things called pullbacks, yuh know. Plus the steel and aluminum co's waaaaaaaay above their 8 and 20ma. That always signals a dangerous time to buy metals. I wonder if I could wait and get this at 68.
I forgot to ask where you got you forward P/E ratio from?? It's just a guess based on several things, (most notable earnings) anyway, but I think your figure is off by quite a bit.
Hell, by next year BHP Billiton Ltd.,(or BHP.AX) may have bought all the shares of PLC. That would shock you denominator in the eps computation!!!! HaHa! I see your thinking, but if you ever see that entry price ($68) again, I will be shocked. I truly beleive that when we finally shake through the $75 resistance level, we'll be chasing $80 for a while. All JMHO.
Go back and analyze the Annual Report and the Notes to the Financial Statements @ 6-30-09, especially the Income Statement. Examine the several non recurring "exceptional" items like, e.g., the write-off of Ravensthorpe.
Then consider that BHP with a fiscal YE took the whole brunt of the recession in one reporting year. You will find the "static" P/E ratio is SOMEWHERE in the neighborhood of $16-17 in a real, meaningful sense of Income. You can't trust yahoo's figures, or hardly anyone else's. You have to do your own due diligence.
The P/E estimate is a snapshot in time using "Old" net income and O/S shares for with today's SP also. Who knows what the forward P/E really is??????
Also consider the current, and, debt to equity ratio's. Finally think about the on going growth of BHP. See what you think then. Just offering the way I see things FWIW.