Brookfield Business Corporation (BBUC)
Valuation Overview•Is Brookfield Business Corporation Overvalued or Undervalued?
Trading at a discount compared to peers, but the underlying intrinsic cash flows struggle to support the current price.
Fragile underlying quality score of 39/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven predominantly by aggressive share repurchases.
BBUC struggles with subpar profitability and pressured margins. This is paired with a moderately leveraged but stable balance sheet.
The company maintains stable top-line performance paired with stable bottom-line earnings. Operating efficiency remains adequate with margins around 13.9%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $6.3B | +234.5% | — | — | — | |
| EBITDA | $1000.0M | — | +75.5% | — | — | |
| Net Income | $39.4M | +102.9% | -69.4% | — | — | |
| EPS (Diluted) | $0.56 | +97.5% | — | — | — | |
| Free Cash Flow | $276.0M | +23.0% | +12.8% | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 18.1% | 12.9% | 10.8% | 10.1% |
| Operating Margin | 13.9% | 8.0% | 6.8% | 6.2% |
| Net Margin | -3.6% | -1.3% | 2.0% | 1.0% |
| FCF Margin | 0.3% | -4.2% | -4.3% | -2.5% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $1.31 | $0.19 | -85.5% | ||
| Q1'26 | — | $-0.47 | — | ||
| Q1'26 | — | $-0.47 | — | ||
| Q4'23 | — | $6.22 | — | ||
| Q3'23 | — | $1.33 | — | ||
| Q2'23 | — | $1.48 | — | ||
| Q1'23 | — | $-2.54 | — | ||
| Q4'22 | — | $2.66 | — |
Total return is +18.5% (1Y), lagging the benchmark by -6.5%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -8.8% | -18.1% | — |
| 1Y | +18.5% | -6.5% | +0.9% |
| 3YCAGR | +19.6% | -1.4% | +3.8% |
| 5YCAGR | +4.1% | -9.1% | +4.0% |
| 10YCAGR | +2.0% | -12.0% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Brookfield Business Corporation (BBUC) valuation, health, and returns.
Brookfield Business Corporation is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. overvalued (implying -72.7% downside from DCF intrinsic value of $9.05)
Brookfield Business Corporation has multiple valuation anchors: DCF Intrinsic Value: $9.05 | Peer Relative Fair Value: $74.44 | Wall Street Analyst Target: $40.75 (implying +23.1% upside). A convergence of these signals offers higher conviction.
Brookfield Business Corporation displays weak financial health with a composite quality score of 39/100, supported by a Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 29.1%.
Brookfield Business Corporation pays a 1.4% dividend yield, covered by a 123% payout ratio with 0 years of growth, supplemented by a 4.8% buyback yield.
Brookfield Business Corporation's current growth trajectory is Stable. The company achieved +234.5% 1Y revenue growth and +97.5% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Buy based on 2 analysts. The consensus price target represents a +23.1% change from current levels.
Investment risks for Brookfield Business Corporation include: -21.0% 1-year max drawdown, high beta (1.32x market volatility), stretched payout ratio. Volatility risk is characterized by a beta of 1.32x.
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.