Brookfield (TSX:BN) Valuation Check After $11 Billion AI Data Center Expansion in India

Brookfield (TSX:BN) is back on investors radar after stepping into Digital Connexions, a Reliance joint venture planning to pour $11 billion into AI driven data centers in Indias Andhra Pradesh.

See our latest analysis for Brookfield.

Despite a soft 1 day share price return of 1.01 percent to about 64.54 dollars, Brookfield’s 16.79 percent year to date share price return and triple digit multi year total shareholder returns suggest momentum is still building as investors warm to its AI infrastructure push and recent preferred share financing.

If Brookfield’s AI data center move has caught your eye, it could be a good moment to explore other high growth tech and AI names using high growth tech and AI stocks for fresh ideas.

Yet with Brookfield now trading slightly above analyst targets after a powerful multi year run, investors face a tougher call: is this AI infrastructure pivot still an underappreciated growth engine, or has the market already priced it in?

Price-to-Earnings of 126.1x: Is it justified?

Brookfield’s last close at CA$64.54 implies a steep valuation premium, with its 126.1x price-to-earnings ratio sitting well above peers and industry averages.

The price-to-earnings multiple compares the current share price to the company’s earnings, effectively revealing how many dollars investors are willing to pay for each dollar of profit. For a diversified asset manager like Brookfield, a high P/E often reflects expectations of durable fee income, scalable capital deployment, and the potential for earnings to ramp as new strategies, such as AI infrastructure, mature.

However, Brookfield’s 126.1x multiple stands out as expensive both against its selected peers, which trade around 52.3x earnings, and especially versus the broader Canadian Capital Markets industry, which sits near 8.8x. That gap suggests the market is assigning Brookfield a premium growth and quality narrative that far exceeds sector norms, leaving little margin for disappointment if earnings or cash flows underwhelm.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Earnings of 126.1x (OVERVALUED)

However, steep revenue declines and a share price already above analyst targets mean that any AI execution hiccup could trigger a sharp shift in sentiment.

Find out about the key risks to this Brookfield narrative.

Build Your Own Brookfield Narrative

If this perspective does not fully resonate, or you would rather dig into the numbers yourself, you can shape a custom view in minutes: Do it your way.

A great starting point for your Brookfield research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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