Brookfield Infrastructure Total Debt vs. Current Valuation

BIP-PE Preferred Stock  CAD 23.71  0.19  0.79%   
Based on the measurements of profitability obtained from Brookfield Infrastructure's financial statements, Brookfield Infrastructure Partners may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Brookfield Infrastructure's ability to earn profits and add value for shareholders.
For Brookfield Infrastructure profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Brookfield Infrastructure to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Brookfield Infrastructure Partners utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Brookfield Infrastructure's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Brookfield Infrastructure Partners over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Brookfield Infrastructure's value and its price as these two are different measures arrived at by different means. Investors typically determine if Brookfield Infrastructure is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Brookfield Infrastructure's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Brookfield Infrastructure Current Valuation vs. Total Debt Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Brookfield Infrastructure's current stock value. Our valuation model uses many indicators to compare Brookfield Infrastructure value to that of its competitors to determine the firm's financial worth.
Brookfield Infrastructure Partners is the top company in total debt category among its peers. It also is the top company in current valuation category among its peers reporting about  2.45  of Current Valuation per Total Debt. Comparative valuation analysis is a catch-all model that can be used if you cannot value Brookfield Infrastructure by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Brookfield Infrastructure's Preferred Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Brookfield Total Debt vs. Competition

Brookfield Infrastructure Partners is the top company in total debt category among its peers. Total debt of Utilities industry is currently estimated at about 527.42 Billion. Brookfield Infrastructure holds roughly 33.8 Billion in total debt claiming about 6% of Utilities industry.
Total debt  Workforce  Revenue  Valuation  Capitalization

Brookfield Current Valuation vs. Total Debt

Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.

Brookfield Infrastructure

Total Debt

 = 

Bonds

+

Notes

 = 
33.8 B
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Brookfield Infrastructure

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
82.7 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Brookfield Current Valuation vs Competition

Brookfield Infrastructure Partners is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Utilities industry is currently estimated at about 26.42 Trillion. Brookfield Infrastructure adds roughly 82.7 Billion in current valuation claiming only tiny portion of Utilities industry.

Brookfield Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Brookfield Infrastructure. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Brookfield Infrastructure position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Brookfield Infrastructure's important profitability drivers and their relationship over time.

Use Brookfield Infrastructure in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Brookfield Infrastructure position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Brookfield Infrastructure will appreciate offsetting losses from the drop in the long position's value.

Brookfield Infrastructure Pair Trading

Brookfield Infrastructure Partners Pair Trading Analysis

The ability to find closely correlated positions to Brookfield Infrastructure could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Brookfield Infrastructure when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Brookfield Infrastructure - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Brookfield Infrastructure Partners to buy it.
The correlation of Brookfield Infrastructure is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Brookfield Infrastructure moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Brookfield Infrastructure moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Brookfield Infrastructure can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Brookfield Infrastructure position

In addition to having Brookfield Infrastructure in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Air
Air Theme
Companies specializing in air services and air delivery. The Air theme has 43 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Air Theme or any other thematic opportunities.
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Other Information on Investing in Brookfield Preferred Stock

To fully project Brookfield Infrastructure's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Brookfield Infrastructure at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Brookfield Infrastructure's income statement, its balance sheet, and the statement of cash flows.
Potential Brookfield Infrastructure investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Brookfield Infrastructure investors may work on each financial statement separately, they are all related. The changes in Brookfield Infrastructure's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Brookfield Infrastructure's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.