Brookfield Asset Management Ltd. (BAM)
Valuation Overview•Is Brookfield Asset Management Ltd. Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
High-quality fundamentals with a strong composite quality score of 86/100, backed by robust profitability and solvency.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
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Verdict: Elite compounder with fortress-level fundamentals across every core pillar.
Wall Street is highly bullish, projecting significant upside with steady expected earnings growth. This is paired with healthy capital returns, anchored by a strong dividend yield, though free cash flow coverage appears tight.
BAM exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins (highlighted by a massive 26.1% ROIC). This is paired with a moderately leveraged but stable balance sheet.
The company demonstrates solid revenue growth (7.4% 3Y CAGR) however, earnings have severely contracted over the same period. This growth is supported by elite operational efficiency, sustaining an impressive 61.8% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $1.7B | +16.9% | +7.4% | +18.8% | — | |
| EBITDA | $941.8M | — | +2.4% | — | — | |
| Net Income | $904.0M | +14.6% | +9.1% | — | — | |
| EPS (Diluted) | $0.56 | +14.3% | -32.0% | — | — | |
| Free Cash Flow | $392.8M | +30.3% | — | +3.5% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 81.8% | 73.7% | 76.3% | 82.5% |
| Operating Margin | 61.8% | 71.2% | 74.2% | 72.8% |
| Net Margin | 52.6% | 52.6% | 56.4% | 50.4% |
| FCF Margin | 41.1% | 41.6% | 33.6% | 43.5% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q3'26Latest | $0.43 | $0.44 | +1.8% | ||
| Q2'26 | $0.41 | $0.43 | +4.7% | ||
| Q1'26 | $0.41 | $0.40 | -2.4% | ||
| Q1'26 | $0.44 | $0.47 | +6.6% | ||
| Q4'25 | $0.40 | $0.41 | +1.6% | ||
| Q3'25 | $0.39 | $0.38 | -2.1% | ||
| Q2'25 | $0.39 | $0.40 | +1.5% | ||
| Q1'25 | $0.39 | $0.40 | +3.3% |
Total return is -22.9% (1Y), lagging the benchmark by -38.7%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -12.5% | -24.9% | — |
| 1Y | -22.9% | -38.7% | +3.2% |
| 3YCAGR | +14.0% | -6.7% | +15.0% |
| 5YCAGR | +9.9% | -1.4% | +18.9% |
| 10YCAGR | +4.8% | -8.5% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Brookfield Asset Management Ltd. (BAM) valuation, health, and returns.
Brookfield Asset Management Ltd. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. overvalued (implying -20.7% downside from DCF intrinsic value of $36.53)
Brookfield Asset Management Ltd. has multiple valuation anchors: DCF Intrinsic Value: $36.53 | Peer Relative Fair Value: $35.56 | Wall Street Analyst Target: $58.50 (implying +29.3% upside). A convergence of these signals offers higher conviction.
Brookfield Asset Management Ltd. displays excellent financial health with a composite quality score of 86/100, supported by a Piotroski F-Score of 3/9, Return on Invested Capital (ROIC) of 26.1%.
Brookfield Asset Management Ltd. pays a 3.8% dividend yield, covered by a 113% payout ratio with 3 years of growth, supplemented by a 0.6% buyback yield.
Brookfield Asset Management Ltd.'s current growth trajectory is Accelerating. The company achieved +16.9% 1Y revenue growth and +14.3% 1Y EPS growth, compared to its 3Y revenue CAGR of +7.4%.
Wall Street consensus is Buy based on 20 analysts, beating EPS expectations in 67% of recent quarters with a 2-quarter streak. The consensus price target represents a +29.3% change from current levels.
Investment risks for Brookfield Asset Management Ltd. include: -30.2% 1-year max drawdown, high beta (1.43x market volatility), stretched payout ratio. Volatility risk is characterized by a beta of 1.43x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.