Yes, it's a simple formula that doesn't apply in all cases. Yes, it says that body builders, with 0.5% fat, are obese.
That's not the point of the BMI though. If you fall outside the typical body style that the BMI is based on, then you probably already know about the BMI and how it doesn't apply to you. That doesn't mean it's not a useful metric for a good portion of the population.
For an average person, if the BMI says "Obese", chances are that person should probably lose a few pounds to be healthier.
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