Brookfield Asset Management is an alternative asset manager and REIT/Real Estate Investment Manager firm focuses on real estate, renewable power, infrastructure and venture capital and private equity assets. It manages a range of public and private investment products and services for institutional and retail clients. This week, I fundamentally analyze Brookfield Asset Management’s stock. I review Brookfield Asset Management’s annual report and its operating segments, analyze the key ratios, and derive the intrinsic value using Discounted Cash Flow (DCF) analysis. Since this is a long video, please feel free to use the time stamps in the video if you only wish to watch certain topics.
I review various key ratios such as Revenue, Net Income, Shares outstanding, Dividends, Payout Ratio, Free Cash Flows (FCF), Financial Leverage, Current Ratio, Debt to Equity Ratio, Return on Equity (ROE), Days Sales Outstanding (DSO), Days Inventory, Payable Period, Cash Conversion Cycle, Inventory Turnover, etc.
After taking into account Brookfield Asset Management’s 2020 free cash flow of $4,329 million, a 6% growth rate of FCF (growth for the next 10 years), 10% discount rate, 2.125% long term growth rate (growth from 10 year mark in the future to perpetuity), 1,557 million shares outstanding, and $5,450 million of long term debt, the DCF analysis yields us an intrinsic value of $43.30 per share.
0:37 Business Overview
6:10 Key Ratios Analysis
15:16 Discounted Cash Flow Analysis / Intrinsic Value
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Brookfield Asset Management’s Website: here.
Morningstar Key Ratios Link: here.
Useful Resources here.
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