| BN Stock | | | 84.47 1.01 1.21% |
Based on the measurements of profitability obtained from Brookfield's financial statements, Brookfield's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Brookfield's ability to earn profits and add value for shareholders. As of the 26th of November 2024,
EV To Sales is likely to grow to 3.99, while
Price To Sales Ratio is likely to drop 0.61. At this time, Brookfield's
Accumulated Other Comprehensive Income is very stable compared to the past year. As of the 26th of November 2024,
Operating Income is likely to grow to about 23.5
B, while
Net Income is likely to drop about 3
B.
For Brookfield profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Brookfield to generate income relative to revenue, assets, operating costs, and current equity. These
fundamental indicators attest to how well Brookfield utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Brookfield's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Brookfield 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's value and its price as these two are different measures arrived at by different means. Investors typically determine if Brookfield is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Brookfield'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 Market Capitalization vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Brookfield's current stock value. Our valuation model uses many indicators to compare Brookfield value to that of its competitors to determine the firm's financial worth.
Brookfield is number one stock in price to book category among its peers. It also is number one stock in market capitalization category among its peers creating about
59,037,237,421 of Market Capitalization per Price To Book. At this time, Brookfield's Market Cap is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Brookfield by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Brookfield's 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 Market Capitalization vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Brookfield | P/B | = | MV Per ShareBV Per Share |
| = | 2.13 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.
Brookfield | Market Cap | = | Shares Outstanding | X | Share Price |
| = | 125.9 B |
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.
Brookfield Market Capitalization vs Competition
Brookfield is number one stock in market capitalization category among its peers.
Market capitalization of
Financials industry is currently estimated at about 272.41 Billion. Brookfield totals roughly 125.9 Billion in market capitalization claiming about 46% of equities under Financials industry.
Brookfield Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Brookfield, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Brookfield will eventually generate negative long term returns. The profitability progress is the general direction of Brookfield's change in net profit over the period of time. It can combine
multiple indicators of Brookfield, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Brookfield Profitability Driver Comparison
Profitability drivers are factors that can directly affect your
investment outlook on Brookfield. 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 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's important profitability drivers and their relationship over time.
Use Brookfield 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 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 will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Brookfield 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 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 - 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 to buy it.
The correlation of Brookfield 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 moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Brookfield 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 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.
Use Investing Themes to Complement your Brookfield position
In addition to having Brookfield 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.
Industrials ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Industrials ETFs theme has 45 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
Industrials ETFs Theme or any other
thematic opportunities.
Other Information on Investing in Brookfield Stock
To fully project Brookfield's
future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the
financial position of Brookfield 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's income statement, its balance sheet, and the statement of cash flows.
Potential Brookfield investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Brookfield investors may work on each financial statement separately, they are all related. The changes in Brookfield's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Brookfield'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.
