Thinking about whether Brookfield Asset Management is a bargain right now? You are not alone. This might be the perfect time to take a closer look at its value fundamentals.
After a jump of 3.5% in the past week but sliding 3.2% over the last month, Brookfield Asset Management’s stock price has shown both short-term optimism and ongoing investor caution.
Much of this activity has been influenced by a flurry of recent news. Brookfield’s expansion efforts in global alternatives and its new infrastructure partnerships are turning heads, while regulatory changes have added some uncertainty to the outlook. These headlines are offering both fresh opportunities and new risks for shareholders.
When it comes to pure numbers, Brookfield Asset Management only scores 1 out of 6 on our valuation checks. On paper, it is looking pricey. But traditional valuation measures are just the start. Stick around as we dig deeper into different approaches and introduce a method many investors overlook.
Brookfield Asset Management scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
The Excess Returns model provides a straightforward way to value companies like Brookfield Asset Management by measuring how much profit the company generates above its cost of equity capital. In essence, this model examines what shareholders earn in addition to what they might expect from a risk-equivalent investment.
Based on recent estimates, Brookfield Asset Management has a Book Value of CA$5.25 per share and is projected to achieve stable Earnings Per Share (EPS) of CA$2.25, according to forecasts from five analysts. The company’s Cost of Equity is estimated at CA$0.47 per share, resulting in an annual Excess Return of CA$1.78 per share. This result aligns with an average Return on Equity of 36.40 percent. Looking further ahead, the Stable Book Value is forecasted to be CA$6.17 per share, based on four analyst estimates.
Applying this methodology, Brookfield Asset Management’s Excess Returns valuation results in an intrinsic value that is 23.9 percent higher than the current market price. This indicates the stock is trading above its fair value, at a significant premium.
Result: OVERVALUED
Our Excess Returns analysis suggests Brookfield Asset Management may be overvalued by 23.9%. Discover 920 undervalued stocks or create your own screener to find better value opportunities.
BAM Discounted Cash Flow as at Nov 2025
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Brookfield Asset Management.
The Price-to-Earnings (PE) ratio is a widely used metric for valuing profitable companies because it directly relates a company’s market value to its earnings. For companies generating consistent profits like Brookfield Asset Management, the PE ratio helps investors gauge how much they are paying for each dollar of earnings. This makes it easier to compare businesses of different sizes.
Growth expectations and perceived risks play a big role in shaping what counts as a “normal” or “fair” PE ratio. Companies expected to grow faster usually command higher multiples, while those exposed to greater risks or market uncertainty tend to trade at lower multiples. These benchmarks help contextualize a company’s valuation in relation to its peers and the broader industry.
Brookfield Asset Management currently trades at a PE ratio of 32.5x. This is well above the Capital Markets industry average of 8.7x and still below the average of its peer group at 50.1x. To provide a more tailored view, Simply Wall St calculates a Fair Ratio of 27.9x for Brookfield Asset Management, which factors in its growth outlook, margins, risks, business model, and market cap. Unlike basic peer or industry comparisons, this Fair Ratio is a dynamic measure that aims to reflect what the market should reasonably pay for the stock given all these important variables.
Currently, Brookfield Asset Management’s actual PE ratio is only about 4.6x above its Fair Ratio, suggesting the stock is moderately overvalued by this method.
Result: OVERVALUED
TSX:BAM PE Ratio as at Nov 2025
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Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. Narratives are simply your personal story or perspective behind a company, connecting your fair value and estimates for future revenue, earnings, and margins to real financial decisions. Think of them as an easy way to link your outlook on Brookfield Asset Management’s business to a forecast and a target price you believe in.
Narratives make investing more approachable and dynamic by turning company data into a living story. You can build and share these stories with others directly on Simply Wall St’s Community page, which is used by millions of investors. As new information emerges, such as news headlines or quarterly results, Narratives automatically update so your investment thesis stays fresh and relevant.
This approach empowers you to decide when to buy or sell by comparing your Fair Value Narrative against the current market Price. For example, one Brookfield Asset Management Narrative might forecast rapid global expansion and assign a high fair value, while another Narrative may anticipate regulatory headwinds and set a more conservative valuation. Narratives let you see and act on these differences, making investment decisions more personal, contextual, and actionable.
Do you think there’s more to the story for Brookfield Asset Management? Head over to our Community to see what others are saying!
TSX:BAM Community Fair Values as at Nov 2025
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include BAM.TO.
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