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:
Below please find a table outlining a discounted cash flow forecast for BBU, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Brookfield Business Partners LP ranked in the 97th percentile in terms of potential gain offered. Our DCF model suggests the stock is undervalued by 11383%; returns of such proportions should be viewed with some skepticism, though. In terms of the factors that were most noteworthy in this DCF analysis for BBU, they are:
The compound growth rate in the free cash flow of Brookfield Business Partners LP over the past 3.82 years is 1.32%; that's higher than 93.6% of free cash flow generating stocks in the Industrials sector.
11% of the company's capital comes from equity, which is greater than just 3.15% of stocks in our cash flow based forecasting set.
The business' balance sheet reveals debt to be 89% of the company's capital (with equity being the remaining amount). Approximately 96.82% 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
TCOM, CYD, PRIM, HHR, and LMB can be thought of as valuation peers to BBU, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Brookfield Place in New York represents a good example of BPY's prime properties. Source Introduction This post is about current Brookfield Asset Management (BAM) prospects and will involve to some extent developments in its main subsidiaries (BIP, BEP, BPY, BBU) with most emphasis on BPY due to its risks. Do...
Alexander Steinberg on Seeking Alpha | August 18, 2020
Shares of GrafTech International (NYSE: EAF) fell more than 10% at the open on Thursday after the company said its majority shareholder was distributing part of its holdings. In a statement late Wednesday, GrafTech, a manufacturer of graphite electrodes used in steel production, said that a consortium led by Brookfield Business Partners (NYSE: BBU) has distributed a portion of its shares. The move increases the public float -- the number of shares available for trade -- by 26.8 million, meaning the company's float is now about 35% of shares outstanding from 25%.
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