Brookfield BRP Holdings (Canada
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$15.82
Market Price
$15.49
Undervalued By
2.1%
Method: Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes, 25 par value, annual coupon = 0.04875 x 25 = 1.21875 per share. Current market price (stockanalysis.com) is 15.84, implying a market-required yield of 1.21875/15.84 = 7.69%, consistent with comparable Brookfield preferred/notes yields of 7.9-8.1% (BEPJ, BIPH, BIPI). Perpetuity value = 1.21875 / 0.077 = 15.82; no call adjustment needed since price is far below the 25 call price.
Reasoning: Deeply discounted low-coupon (4.875%) perpetual note priced to yield roughly 7.7%, in line with sister Brookfield preferred securities; value reflects the market-clearing perpetuity price, not par.