Brookfield Business Valuation
| BBU Stock | USD 26.08 0.52 2.03% |
At this time, the firm appears to be undervalued. Brookfield Business shows a prevailing Real Value of $27.57 per share. The current price of the firm is $26.08. Our model approximates the value of Brookfield Business from analyzing the firm fundamentals such as Current Valuation of 40.77 B, profit margin of 0.01 %, and Return On Equity of 0.29 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Brookfield Business' valuation include:
Price Book 0.9784 | Enterprise Value 40.8 B | Enterprise Value Ebitda 5.3994 | Price Sales 0.0416 | Forward PE 36.9004 |
Undervalued
Today
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.
Brookfield Business' intrinsic value may or may not be the same as its current market price of 26.08, 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 26.08 | Real 27.57 | Target 26.6 | Hype 26.19 |
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.
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: 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.
Brookfield Business Cash |
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Brookfield Valuation Trend
Brookfield Business' real value is important for investors to make better decisions and a more accurate overall view of Brookfield Business' financial worth over time. Using both Brookfield Business' enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
Brookfield Business Total Value Analysis
Brookfield Business Partners is currently forecasted to have company total value of 40.77 B with market capitalization of 1.94 B, debt of 45.52 B, and cash on hands of 2.87 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Brookfield Business fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
40.77 B | 1.94 B | 45.52 B | 2.87 B |
Brookfield Business Investor Information
About 79.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 0.98. Some equities with similar Price to Book (P/B) outperform the market in the long run. Brookfield Business recorded earning per share (EPS) of 8.09. The entity last dividend was issued on the 29th of November 2024. The firm had 1558:1000 split on the 15th of March 2022. Based on the key indicators related to Brookfield Business' liquidity, profitability, solvency, and operating efficiency, Brookfield Business Partners may be sliding down financialy. It has an above-average likelihood of going through some form of financial trouble next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 1.3 B | 2.1 B |
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Brookfield Business Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Brookfield Business has an asset utilization ratio of 64.4 percent. This implies that the Company is making $0.64 for each dollar of assets. An increasing asset utilization means that Brookfield Business Partners is more efficient with each dollar of assets it utilizes for everyday operations.Brookfield Business Ownership Allocation
Brookfield Business holds a total of 74.28 Million outstanding shares. The majority of Brookfield Business Partners outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Brookfield Business to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Brookfield Business. Please pay attention to any change in the institutional holdings of Brookfield Business Partners as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Brookfield Business Profitability Analysis
The company reported the last year's revenue of 53.05 B. Total Income to common stockholders was 3.78 B with profit before taxes, overhead, and interest of 4.32 B.Brookfield Business Past Distributions to stockholders
About Brookfield Business Valuation
The stock valuation mechanism determines Brookfield Business' current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Brookfield Business based exclusively on its fundamental and basic technical indicators. 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, and relevant financial multiples and ratios and then compare them to those of Brookfield Business's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.1 B | 2.4 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 |
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
At this time, Brookfield Business' Dividends Paid is comparatively stable compared to the past year. Dividend Paid And Capex Coverage Ratio is likely to gain to 0.96 in 2024, whereas Dividend Yield is likely to drop 0.04 in 2024. . At this time, Brookfield Business' Retained Earnings are comparatively stable compared to the past year. Price Earnings To Growth Ratio is likely to gain to 0.09 in 2024, whereas Earnings Yield is likely to drop 0.17 in 2024.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 57 M | 86.7 M | |
| Dividend Yield | 0.04 | 0.04 | |
| Dividend Payout Ratio | 0.12 | 0.11 | |
| Dividend Paid And Capex Coverage Ratio | 0.91 | 0.96 |
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
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 Outstanding | 74.5 M | |
| Quarterly Earnings Growth Y O Y | -0.319 | |
| Forward Price Earnings | 36.9004 |
Brookfield Business Current Valuation Indicators
Brookfield Business' valuation analysis is 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.Additional Tools for Brookfield Stock Analysis
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.