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  5. BN: Hi, how do you see Brookfield's valuation right now? [Brookfield Corporation Class A Limited Voting Shares]
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Q: Hi, how do you see Brookfield's valuation right now? Is it still fairly priced? What would be a good entry price given the very reasons and likely upcoming volatility? Thank you
Asked by Matt on February 05, 2025
5i Research Answer:

The stock has consolidated about $6/share in the past week, and this does make it more attractive. Cash flow is $6B annually, and it will likely be very active with M&A deals this year. We would consider it a buy in the $81 range. There is no specific reason for the recent decline: BN is up 61% in the past year and BAM 58%. There is no major news. The group has entered a bidding war for a company called Insignia, but it is a relatively small company. With no news, one could speculate on reasons for a decline (profit taking, tariffs, interest rates, short selling) but it would only be speculation and there is no way of knowing. We would not really consider the trading activity that unusual, considering the big embedded gains and the market shakiness overall right now.