Brookfield (TSX:BN) Valuation: Is There Further Upside After Recent Gains?

Brookfield (TSX:BN) shares edged up slightly today, gaining 0.5% to close at CA$95.17. Investors may be taking stock of its recent upswing, as the stock has risen about 4% over the past month.

See our latest analysis for Brookfield.

Brookfield’s modest 0.5% gain today adds to a steady uptrend, with the share price advancing 15% year-to-date and total shareholder return over the past year reaching 34%. The momentum here suggests growing optimism about the company’s long-term value, even though recent news has been light.

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With Brookfield’s strong recent performance and current share price just above analyst targets, investors are left to wonder whether the stock is still undervalued or if the market is already factoring in all its future growth potential.

Most Popular Narrative: 2.2% Undervalued

Brookfield’s most followed valuation view places fair value at CA$97.28, slightly above the last close of CA$95.17, suggesting a narrow margin to the upside. This sets the stage for a significant change in expectations about the company's next phase of growth.

Brookfield's Wealth Solutions business is scaling rapidly, both in the U.S. and through expansion into new markets like the U.K. and Japan. This is expected to drive increased revenue and cash flow, given the potential to originate over $25 billion of predictable liabilities annually.

Read the complete narrative.

What is the reason behind this high fair value estimate? The central story focuses on fast-expanding global operations, impressive potential margins, and an ambitious profit trajectory. Interested in the data that differentiates this price point? Explore further to see the specific formula behind Brookfield’s latest valuation.

Result: Fair Value of $97.28 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, continued market volatility or a shift in monetary policy could challenge Brookfield’s revenue forecasts and reshape the current bullish outlook.

Find out about the key risks to this Brookfield narrative.

Build Your Own Brookfield Narrative

If you think this outlook misses something or prefer to reach your own conclusions, you can shape a personal take in just a few 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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