Brookfield Business Valuation

BBU Stock  USD 19.44  0.10  0.52%   
At this time, the firm appears to be undervalued. Brookfield Business shows a prevailing Real Value of $23.5 per share. The current price of the firm is $19.44. Our model approximates the value of Brookfield Business from analyzing the firm fundamentals such as Current Valuation of 62.52 B, return on equity of 0.2, and Profit Margin of 0.01 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor acquiring undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting Brookfield Business' valuation include:
Price Book
0.7627
Enterprise Value
62.5 B
Enterprise Value Ebitda
6.0775
Price Sales
0.0268
Forward PE
1.5237
Undervalued
Today
19.44
Please note that Brookfield Business' price fluctuation is very steady at this time. Calculation of the real value of Brookfield Business is based on 3 months time horizon. Increasing Brookfield Business' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Brookfield Business Partners is useful when determining the fair value of the Brookfield stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Brookfield Business. Since Brookfield Business is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Brookfield Stock. However, Brookfield Business' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  19.44 Real  23.5 Target  26.6 Hype  19.5 Naive  19.0
The real value of Brookfield Stock, also known as its intrinsic value, is the underlying worth of Brookfield Business Company, which is reflected in its stock price. It is based on Brookfield Business' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Brookfield Business' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Brookfield Business' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
23.50
Real Value
25.13
Upside
Estimating the potential upside or downside of Brookfield Business Partners helps investors to forecast how Brookfield stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Brookfield Business more accurately as focusing exclusively on Brookfield Business' fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
-1.48-1.48-1.48
Details
Hype
Prediction
LowEstimatedHigh
17.8719.5021.13
Details
Potential
Annual Dividend
LowForecastedHigh
0.180.180.18
Details
7 Analysts
Consensus
LowTarget PriceHigh
24.2126.6029.53
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Brookfield Business' intrinsic value based on its ongoing forecasts of Brookfield Business' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Brookfield Business' closest peers. When choosing an evaluation method for Brookfield Business, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Brookfield Business Investments

2.66 Billion

Brookfield Valuation Trend

Knowing Brookfield Business' actual value is paramount for traders to make sound investment determinations. Brookfield Business' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Brookfield Business' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Brookfield Business' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Brookfield Market Cap

Brookfield Business Partners is number one stock in market capitalization category among related companies. Market capitalization of Industrials industry is currently estimated at about 16.08 Billion. Brookfield Business holds roughly 1.44 Billion in market capitalization claiming about 9% of equities under Industrials industry.
Capitalization  Valuation  Workforce  Revenue  Total debt

Brookfield Business Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Brookfield Business's current stock value. Our valuation model uses many indicators to compare Brookfield Business value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Brookfield Business competition to find correlations between indicators driving Brookfield Business's intrinsic value. More Info.
Brookfield Business Partners is number one stock in price to earning category among related companies. It is number one stock in price to book category among related companies fabricating about  0.04  of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Brookfield Business Partners is roughly  26.68 . Price To Book Ratio is likely to gain to 0.85 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Brookfield Business by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Brookfield Business' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Brookfield Business' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Brookfield Business' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Brookfield Business and how it compares across the competition.

About Brookfield Business Valuation

The stock valuation mechanism determines the current worth of Brookfield Business Partners on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Brookfield Business Partners. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Brookfield Business based exclusively on its fundamental and basic technical indicators. By analyzing Brookfield Business's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Brookfield Business's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Brookfield Business. We calculate exposure to Brookfield Business's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Brookfield Business's related companies.
Last ReportedProjected for Next Year
Gross Profit2.1 B2.4 B
Pretax Profit Margin 0.07  0.07 
Operating Profit Margin 0.01  0.02 
Net Profit Margin 0.01  0.01 
Gross Profit Margin 0.04  0.04 

8 Steps to conduct Brookfield Business' Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Brookfield Business' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Brookfield Business' valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Brookfield Business' financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Brookfield Business' revenue streams: Identify Brookfield Business' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Brookfield Business' industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Brookfield Business' growth potential: Evaluate Brookfield Business' management, business model, and growth potential.
  • Determine Brookfield Business' financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Brookfield Business' estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Brookfield Business' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Brookfield Business' value is low or high relative to the company's performance and growth projections. Determining the market value of Brookfield Business can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Brookfield Business represents a small ownership stake in the entity. As a stockholder of Brookfield, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Brookfield Business Dividends Analysis For Valuation

Dividends Paid is likely to drop to about 49.5 M in 2024. Dividend Yield is likely to drop to 0.02 in 2024. At this time, Brookfield Business' Retained Earnings are comparatively stable compared to the past year. Earnings Yield is likely to gain to 0.39 in 2024, whereas Price Earnings Ratio is likely to drop 2.58 in 2024.
Last ReportedProjected for Next Year
Dividends Paid57 M49.5 M
Dividend Yield 0.04  0.02 
Dividend Payout Ratio 0.10  0.1 
Dividend Paid And Capex Coverage Ratio(0.95)(1.00)
There are various types of dividends Brookfield Business can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Brookfield shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Brookfield Business Partners directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Brookfield pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Brookfield Business by the value of the dividends paid out.

Brookfield Business Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Brookfield Business does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding74.5 M
Quarterly Earnings Growth Y O Y2.145
Forward Price Earnings1.5237

Brookfield Business Current Valuation Indicators

Valuation refers to the process of determining the present value of Brookfield Business Partners and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Brookfield we look at many different elements of the entity such as Brookfield's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Brookfield Business' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Brookfield Business' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Brookfield Business, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Brookfield Business' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Brookfield Business' worth.
When determining whether Brookfield Business is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Brookfield Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Brookfield Business Partners Stock. Highlighted below are key reports to facilitate an investment decision about Brookfield Business Partners Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Brookfield Business Partners. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics.
Note that the Brookfield Business information on this page should be used as a complementary analysis to other Brookfield Business' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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When running Brookfield Business' price analysis, check to measure Brookfield Business' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Brookfield Business is operating at the current time. Most of Brookfield Business' value examination focuses on studying past and present price action to predict the probability of Brookfield Business' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Brookfield Business' price. Additionally, you may evaluate how the addition of Brookfield Business to your portfolios can decrease your overall portfolio volatility.
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Is Brookfield Business' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Brookfield Business. If investors know Brookfield will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Brookfield Business listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
2.145
Dividend Share
0.25
Earnings Share
6.49
Revenue Per Share
253.838
Quarterly Revenue Growth
(0.08)
The market value of Brookfield Business is measured differently than its book value, which is the value of Brookfield that is recorded on the company's balance sheet. Investors also form their own opinion of Brookfield Business' value that differs from its market value or its book value, called intrinsic value, which is Brookfield Business' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Brookfield Business' market value can be influenced by many factors that don't directly affect Brookfield Business' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Brookfield Business' value and its price as these two are different measures arrived at by different means. Investors typically determine if Brookfield Business is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Brookfield Business' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.