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Brookfield (TSX:BN) Cyclically Adjusted PB Ratio : 2.04 (As of Jun. 06, 2024)


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What is Brookfield Cyclically Adjusted PB Ratio?

As of today (2024-06-06), Brookfield's current share price is C$59.04. Brookfield's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 was C$28.95. Brookfield's Cyclically Adjusted PB Ratio for today is 2.04.

The historical rank and industry rank for Brookfield's Cyclically Adjusted PB Ratio or its related term are showing as below:

TSX:BN' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 1.46   Med: 2.05   Max: 2.87
Current: 2.04

During the past years, Brookfield's highest Cyclically Adjusted PB Ratio was 2.87. The lowest was 1.46. And the median was 2.05.

TSX:BN's Cyclically Adjusted PB Ratio is ranked worse than
85.99% of 942 companies
in the Asset Management industry
Industry Median: 0.8 vs TSX:BN: 2.04

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Brookfield's adjusted book value per share data for the three months ended in Mar. 2024 was C$36.213. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is C$28.95 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Brookfield Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Brookfield's Cyclically Adjusted PB Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Brookfield Cyclically Adjusted PB Ratio Chart

Brookfield Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.24 2.16 2.78 1.67 1.88

Brookfield Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.67 1.65 1.53 1.88 1.96

Competitive Comparison of Brookfield's Cyclically Adjusted PB Ratio

For the Asset Management subindustry, Brookfield's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Brookfield's Cyclically Adjusted PB Ratio Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Brookfield's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Brookfield's Cyclically Adjusted PB Ratio falls into.



Brookfield Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Brookfield's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=59.04/28.95
=2.04

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Brookfield's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Brookfield's adjusted Book Value per Share data for the three months ended in Mar. 2024 was:

Adj_Book=Book Value per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=36.213/126.2576*126.2576
=36.213

Current CPI (Mar. 2024) = 126.2576.

Brookfield Quarterly Data

Book Value per Share CPI Adj_Book
201406 14.507 99.473 18.413
201409 14.612 99.394 18.561
201412 16.692 98.367 21.425
201503 17.639 99.789 22.318
201506 18.427 100.500 23.150
201509 18.763 100.421 23.590
201512 19.960 99.947 25.214
201603 20.127 101.054 25.147
201606 19.391 102.002 24.002
201609 20.435 101.765 25.353
201612 20.279 101.449 25.238
201703 20.959 102.634 25.783
201706 20.643 103.029 25.297
201709 19.595 103.345 23.939
201712 21.355 103.345 26.090
201803 21.257 105.004 25.560
201806 22.281 105.557 26.650
201809 20.563 105.636 24.577
201812 24.052 105.399 28.812
201903 24.626 106.979 29.064
201906 24.709 107.690 28.969
201909 25.790 107.611 30.259
201912 26.933 107.769 31.553
202003 26.447 107.927 30.939
202006 25.037 108.401 29.161
202009 25.374 108.164 29.618
202012 26.872 108.559 31.253
202103 27.429 110.298 31.398
202106 27.064 111.720 30.586
202109 31.360 112.905 35.069
202112 32.933 113.774 36.547
202203 35.057 117.646 37.623
202206 34.145 120.806 35.686
202209 34.206 120.648 35.796
202212 34.140 120.964 35.634
202303 34.951 122.702 35.964
202306 34.405 124.203 34.974
202309 35.045 125.230 35.332
202312 36.699 125.072 37.047
202403 36.213 126.258 36.213

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Brookfield  (TSX:BN) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Brookfield Cyclically Adjusted PB Ratio Related Terms

Thank you for viewing the detailed overview of Brookfield's Cyclically Adjusted PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Brookfield (TSX:BN) Business Description

Address
181 Bay Street, Suite 100, Brookfield Place, P.O. Box 762, Toronto, ON, CAN, M5J 2T3
Brookfield Corp owns and manages the commercial property, power, and infrastructure assets. Its investment focus includes Real Estate, Infrastructure, Renewable Power and Private Equity. Real Estate is made up of office and retail properties; Renewable power is made up of hydroelectric, wind, solar, and storage generating facilities; Infrastructure is made up of utilities, transport, energy, data infrastructure, and sustainable resource assets; and Private Equity is focused on business services, infrastructure services, and industrial operations. The company generates the majority revenue through Private Equity. Located around the world, its assets are concentrated in the United States, and Canada.
Executives
Nicholas Howard Goodman Senior Officer

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