The Rising Influence of Rising Affluence

[DewDiligence]

Re: BHP/BBL valuation

BHP’s FY1H12 diluted earnings per ADR* was $3.72 (http://www.bhpbilliton.com/home/investors/reports/Documents/2012/120208_BHP%20Billiton%20Results%20for%20Half%20Year%20Ended%2031%20December%202011.pdf page 37).

If we simplemindedly annualize this rate, we get a fiscal-year EPS of $7.44. Based on this figure, BHP is currently trading at a P/E of 10.9x and BBL is currently trading at a P/E of 9.1x.

As has been noted on this bard on numerous occasions, BBL is the preferred way to own shares in this dual-listed company.

*One ADR of either BHP or BBL is equivalent to 2 ordinary shares.