BBU Valuation

Brookfield Business Partners LP

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25.480

-0.19(-0.740%)1D

Overview
Forecast
Valuation
Earnings

BBU Relative Valuation

BBU's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, BBU is overvalued; if below, it's undervalued.

Historical Valuation

Brookfield Business Partners LP (BBU) is now in the Fair zone, suggesting that its current forward PS ratio of 0.45 is considered Fairly compared with the five-year average of 18.87. The fair price of Brookfield Business Partners LP (BBU) is between 20.30 to 31.09 according to relative valuation methord.

Relative Value

Fair Zone

20.30-31.09

Current Price：25.48

Fair

17.70

Trailing

Forward

24.41

EV/EBITDA

Brookfield Business Partners LP. (BBU) has a current EV/EBITDA of 24.41. The 5-year average EV/EBITDA is 22.49. The thresholds are as follows: Strongly Undervalued below 15.12, Undervalued between 15.12 and 18.81, Fairly Valued between 26.18 and 18.81, Overvalued between 26.18 and 29.87, and Strongly Overvalued above 29.87. The current Forward EV/EBITDA of 24.41 falls within the Historic Trend Line -Fairly Valued range.

0.00

EV/EBIT

Brookfield Business Partners LP. (BBU) has a current EV/EBIT of 0.00. The 5-year average EV/EBIT is -57.96. The thresholds are as follows: Strongly Undervalued below -219.72, Undervalued between -219.72 and -138.84, Fairly Valued between 22.93 and -138.84, Overvalued between 22.93 and 103.81, and Strongly Overvalued above 103.81. The current Forward EV/EBIT of 0.00 falls within the Historic Trend Line -Fairly Valued range.

0.45

Brookfield Business Partners LP. (BBU) has a current PS of 0.45. The 5-year average PS is 0.14. The thresholds are as follows: Strongly Undervalued below -0.10, Undervalued between -0.10 and 0.02, Fairly Valued between 0.26 and 0.02, Overvalued between 0.26 and 0.38, and Strongly Overvalued above 0.38. The current Forward PS of 0.45 falls within the Strongly Overvalued range.

0.00

P/OCF

Brookfield Business Partners LP. (BBU) has a current P/OCF of 0.00. The 5-year average P/OCF is 3.21. The thresholds are as follows: Strongly Undervalued below -5.18, Undervalued between -5.18 and -0.99, Fairly Valued between 7.41 and -0.99, Overvalued between 7.41 and 11.61, and Strongly Overvalued above 11.61. The current Forward P/OCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/FCF

Brookfield Business Partners LP. (BBU) has a current P/FCF of 0.00. The 5-year average P/FCF is 27.94. The thresholds are as follows: Strongly Undervalued below -175.50, Undervalued between -175.50 and -73.78, Fairly Valued between 129.66 and -73.78, Overvalued between 129.66 and 231.37, and Strongly Overvalued above 231.37. The current Forward P/FCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

Brookfield Business Partners LP (BBU) has a current Price-to-Book (P/B) ratio of 2.53. Compared to its 3-year average P/B ratio of 2.65 , the current P/B ratio is approximately -4.63% higher. Relative to its 5-year average P/B ratio of 2.48, the current P/B ratio is about 2.00% higher. Brookfield Business Partners LP (BBU) has a Forward Free Cash Flow (FCF) yield of approximately 25.02%. Compared to its 3-year average FCF yield of -5.78%, the current FCF yield is approximately -533.00% lower. Relative to its 5-year average FCF yield of 10.26% , the current FCF yield is about 143.81% lower.

2.53

P/B

Median3y

2.65

Median5y

2.48

24.71

FCF Yield

Median3y

-5.78

Median5y

10.26

Competitors Valuation Multiple

The average P/S ratio for BBU's competitors is 1.22, providing a benchmark for relative valuation. Brookfield Business Partners LP Corp (BBU) exhibits a P/S ratio of 0.45, which is -62.79% above the industry average. Given its robust revenue growth of -43.83%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

BBU.N

Brookfield Business Partners LP

Performance Decomposition

Market capitalization of BBU increased by 25.41% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 1.69 to 3.79.

The secondary factor is the Revenue Growth, contributed -43.83%to the performance.

Overall, the performance of BBU in the past 1 year is driven by Margin Expansion. Which is more sustainable.

-43.83%

12.02B → 6.75B

Revenue Growth

124.26%

1.69 → 3.79

Margin Expansion

-55.02%

-505.71 → -227.47

P/E Change

25.41%