Brookfield Business Price To Sales vs. Current Valuation

BBU-UN Stock  CAD 34.69  0.77  2.17%   
Based on Brookfield Business' profitability indicators, Brookfield Business Partners is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Brookfield Business' ability to earn profits and add value for shareholders.

Brookfield Business Price To Sales Ratio

0.0275

At present, Brookfield Business' Days Sales Outstanding is projected to decrease significantly based on the last few years of reporting. The current year's EV To Sales is expected to grow to 0.87, whereas Price To Sales Ratio is forecasted to decline to 0.03. At present, Brookfield Business' Operating Income is projected to increase significantly based on the last few years of reporting. The current year's Income Before Tax is expected to grow to about 3.9 B, whereas Accumulated Other Comprehensive Income is projected to grow to (711.5 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.03790.0399
Notably Down
Slightly volatile
For Brookfield Business profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Brookfield Business to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Brookfield Business Partners utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Brookfield Business's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Brookfield Business Partners over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Brookfield Business' value and its price as these two are different measures arrived at by different means. Investors typically determine if Brookfield Business is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Brookfield Business' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Brookfield Business Current Valuation vs. Price To Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Brookfield Business's current stock value. Our valuation model uses many indicators to compare Brookfield Business value to that of its competitors to determine the firm's financial worth.
Brookfield Business Partners is number one stock in price to sales category among its peers. It also is the top company in current valuation category among its peers reporting about  1,021,047,228,973  of Current Valuation per Price To Sales. At present, Brookfield Business' Price To Sales Ratio is projected to slightly decrease based on the last few years of reporting. Comparative valuation analysis is a catch-all model that can be used if you cannot value Brookfield Business by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Brookfield Business' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Brookfield Current Valuation vs. Price To Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Brookfield Business

P/S

 = 

MV Per Share

Revenue Per Share

 = 
0.06 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Brookfield Business

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
57.69 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Brookfield Current Valuation vs Competition

Brookfield Business Partners is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is currently estimated at about 92.82 Billion. Brookfield Business totals roughly 57.69 Billion in current valuation claiming about 62% of equities under Industrials industry.

Brookfield Business Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Brookfield Business, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Brookfield Business will eventually generate negative long term returns. The profitability progress is the general direction of Brookfield Business' change in net profit over the period of time. It can combine multiple indicators of Brookfield Business, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-749 M-711.5 M
Operating Income3.5 B3.7 B
Income Before Tax3.7 B3.9 B
Total Other Income Expense Net213 M223.7 M
Net Income3.8 BB
Income Tax Expense-55 M-52.2 M
Net Income From Continuing Ops3.8 BB
Net Income Applicable To Common Shares32.4 M57.2 M
Net Interest Income-3.6 B-3.4 B
Change To Netincome-180.6 M-171.5 M
Net Income Per Share 6.47  3.98 
Income Quality 0.56  0.54 
Net Income Per E B T 0.13  0.12 

Brookfield Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Brookfield Business. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Brookfield Business position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Brookfield Business' important profitability drivers and their relationship over time.

Use Brookfield Business in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Brookfield Business position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Brookfield Business will appreciate offsetting losses from the drop in the long position's value.

Brookfield Business Pair Trading

Brookfield Business Partners Pair Trading Analysis

The ability to find closely correlated positions to Brookfield Business could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Brookfield Business when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Brookfield Business - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Brookfield Business Partners to buy it.
The correlation of Brookfield Business is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Brookfield Business moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Brookfield Business moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Brookfield Business can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Brookfield Business position

In addition to having Brookfield Business in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Airlines
Airlines Theme
Domestic and international airlines and airline services. The Airlines theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Airlines Theme or any other thematic opportunities.
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When determining whether Brookfield Business is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Brookfield Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Brookfield Business Partners Stock. Highlighted below are key reports to facilitate an investment decision about Brookfield Business Partners Stock:
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You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
To fully project Brookfield Business' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Brookfield Business at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Brookfield Business' income statement, its balance sheet, and the statement of cash flows.
Potential Brookfield Business investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Brookfield Business investors may work on each financial statement separately, they are all related. The changes in Brookfield Business's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Brookfield Business's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.