Brookfield Business Corporation
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$7.20
Market Price
$25.41
Overvalued By
252.9%
Method: EV/EBITDA holding-company model: 6.5x TTM EBITDA of $2.49B ($16.2B EV) less an estimated ~$14.7B net debt (implied from $1.37B TTM interest expense at ~8-9% avg cost), divided by 205.44M shares.
Reasoning: BBUC (Brookfield Business Corporation, NYSE/TSX exchangeable share class of Brookfield Business Partners) is a leveraged, diversified private-equity-style holding company with negative net income, so an EBITDA-multiple-less-net-debt approach is more appropriate than an FCF DCF or DDM; result is conservative relative to the market price given high leverage.