Hey there. Here is my valuation comments on Brookfield from the latest report:
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Given the spinoff, it will be tough to value Brookfield Corp using historical data, given the previous valuations factored in 100% of Brookfield Asset Management. That said, one of the best measures of valuing an asset manager like BN is to compare it to Net Asset Value. In this case, the current NAV is around US$62 per share. This means that Brookfield Corp NAV in CAD is approximately ~$86 as of writing.
This implies that Brookfield is trading at a double digit discount to NAV. While the discount has narrowed (it was 24% as of last quarter), the valuation gap remains. With that in mind, it still provides an excellent entry point to one of the best asset managers in the world. Worth noting, pre-spinoff of BAM, Brookfield had traded at a approximate 8% discount to NAV.
Furthermore, the company has plenty of liquidity, which can be used to fund growth or repurchase shares, with the latter being a strong possibility given the current value disconnect. In fact, since the spinoff, BN has repurchased close to 1 billion USD in shares, and it recently announced plans to buy back an additional US$1B in Fiscal 2024.
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So, the company's NAV gap has closed quite a bit to the point that it is now trading at a single digit discount. I'd view the company as slightly discounted to fairly valued after its meteoric runup.