Down 15%, is the BHP share price good value?

The BHP Group Ltd (ASX: BHP) share price is having a positive start to the week.

In Monday morning trade, the mining giant's shares are up 1.5% to $58.48. However, they remain approximately 15% below their 52-week high.

Does this pullback make BHP shares good value for investors? Let's dig deeper into the mining giant.

Is the BHP share price cheap?

Based on current consensus estimates, the BHP share price is trading on 15.7 times forecast earnings for FY 2027.

And with analysts expecting earnings to grow in the following years, its PE ratio falls to 15 times in FY 2028 and 13.8 times in FY 2029.

These aren't especially cheap multiples for a mining company, particularly one whose profits remain exposed to fluctuations in commodity prices.

However, BHP's outlook is becoming increasingly attractive.

The company is already the world's largest copper producer, and this commodity is playing a growing role in its earnings. In FY 2026, BHP reported that copper accounted for 54% of underlying EBITDA, overtaking iron ore for the first time.

But it isn't settling for that. With copper demand expected to benefit from electrification, renewable energy, electricity networks and the expansion of AI data centres, BHP is looking to grow its production over the next decade.

And then there's potash. BHP's enormous Jansen project in Canada is expected to begin production in mid-2027, opening up an entirely new earnings stream.

Once both stages are operating at full capacity, management estimates that Jansen could generate approximately US$2 billion in annual EBITDA at its assumed long-term potash price.

That could become a significant contributor to group earnings, although reaching full production will take time.

What about dividends?

BHP could also offer a reasonable income stream at current prices.

Based on consensus estimates and current US/AUD exchange rates, its shares offer forecast dividend yields of approximately 3.7% in FY 2027, 3.8% in FY 2028 and 3.9% in FY 2029.

Is the BHP share price good value?

Overall, BHP doesn't look like an outright bargain despite its recent pullback.

However, with copper becoming increasingly important to its earnings and Jansen set to introduce a major new growth opportunity, there is plenty to like about its long-term outlook.

At approximately 15.7 times forward earnings, the BHP share price appears to offer decent value for patient investors.

It may not be dirt cheap, but its growth prospects and potential dividends make it worth considering.

The post Down 15%, is the BHP share price good value? appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2026