...

Brookfield Wealth Solutions Ltd. (BNT) Intrinsic Value

DCF-based fair value calculation with Bear, Base, and Bull scenarios

Popular:

Brookfield Wealth Solutions Ltd. (BNT)

View Full Profile →

Intrinsic Value (DCF)

Current$48.03
→
Intrinsic$294.07
+512%
$214.50$294.07$445.04
Market implies 1% growth for 5 years
DCF analysis suggests BNT could have 512% upside at 25% growth — verify assumptions match your view.
At $48, the market prices in only 1% growth — below historical 25%, suggesting low expectations.
Range: Bear $215 → Bull $445. Current price implies expectations below the bear case — very conservative expectations.
Discount ↓Growth →21%23%25%27%
8%$352$376$402$430
10%$259$276$294$313
12%$208$221$234$248
14%$176$186$196$207

Bull Case

  • Bull case ($445) offers 827% upside at 30% growth, 9% discount
  • Price below even worst-case scenario — strong margin of safety
  • Market-implied growth (1%) ≤ historical CAGR (25%)

Bear Case

  • Bear case ($215) with 20% growth, 12% discount rate
  • Using 25% growth — aggressive, watch for mean reversion
Loading charts...

5-Year Net Income Projection

Year 1$1.52B
Year 2$1.90B
Year 3$2.37B
Year 4$2.96B
Year 5$3.70B
Terminal$54.51B

📐 Model Inputs

Growth Rate25.0%5Y CAGR (cascade: 5Y→3Y→TTM)
Discount Rate10.0%WACC estimate
Terminal Growth3.0%Perpetuity rate
Base Net Income$1.21BTTM actual
Bear g×0.8, r+2%
Base Historical CAGR
Bull g×1.2, r−1.5%
ℹ️

DCF estimates based on historical growth rates extrapolated forward. Uses Net Income (FCF not meaningful for insurers). See FAQ below for full methodology.

Related Analysis

Full Stock ProfileCompare BNT vs BRK.BStock Screener

Frequently Asked Questions

Is BNT stock undervalued or overvalued?
🟢 UNDERVALUED

BNT trades at $48.03 vs. our DCF-derived intrinsic value of $251.29, implying +300% upside. At a 10.0% WACC and 25.0% projected FCF growth, the market appears to be underpricing the present value of BNT's future cash flows. The bear case ($180.22) still suggests upside, providing margin of safety.

What is BNT's intrinsic value?

Using a 5-year DCF model: Base FCF of $1.21B, projected at 25.0% 5Y CAGR (best of revenue, EPS, or FCF growth), discounted at 10.0% WACC, with 3.0% terminal growth. Terminal value calculated via Gordon Growth Model: TV = FCF₅ × (1+g) / (WACC−g). After deducting $-7.70B net debt and dividing by 0.17B shares: Bear $180.22 | Base $251.29 | Bull $355.94. Current price $48.03 implies +300% to base case.

How is BNT's fair value calculated?

DCF Methodology:

① Project FCF years 1-5 using 25.0% growth derived from 5-year historical CAGR (best of revenue, EPS, or FCF growth, with 8% floor and 25% cap).

② Calculate terminal value at year 5 using perpetuity growth model with g=3.0%.

③ Discount all cash flows to PV using WACC=10.0%.

④ Sum PV of explicit period + PV of terminal value = Enterprise Value ($35.54B).

⑤ Subtract net debt, divide by shares outstanding.

Sensitivity analysis available above—adjust WACC ±2% or growth ±3% to stress-test the valuation. Implied EV/FCF multiple: 29.3x.