Brookfield Business Partners L.P. Limited Partnership Units (BBU) Company Bio
Brookfield Business Partners L.P. specializes in investments in business services and industrials sector. Brookfield Business Partners L.P. is based in Hamilton, Bermuda. Brookfield Business Partners L.P. operates as a subsidiary of Brookfield Asset Management Inc.
BBU Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Brookfield Business Partners LP. To summarize, we found that Brookfield Business Partners LP ranked in the 98th percentile in terms of potential gain offered. Our DCF analysis implies the stock could yield a return of 17324% if fairly valued; such returns are always unlikely, though, so further investigation is likely warranted. In terms of the factors that were most noteworthy in this DCF analysis for BBU, they are:
Interest coverage, a measure of earnings relative to interest payments, is 1.18 -- which is good for besting just 23.09% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
8% of the company's capital comes from equity, which is greater than only 4.74% of stocks in our cash flow based forecasting set.
The business' balance sheet reveals debt to be 92% of the company's capital (with equity being the remaining amount). Approximately 95.22% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BBU, try NAV, TCOM, NM, RCII, and XPO.