Author Topic: BAM - Brookfield Asset Management  (Read 308787 times)

Shane

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Re: BAM - Brookfield Asset Management
« Reply #370 on: January 08, 2018, 02:40:12 PM »
Seems like it wouldn't be hard to bring that expertise in house via hiring... After all, paying a team $10-20m a year is nothing if they can put billions to work.


chrispy

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Re: BAM - Brookfield Asset Management
« Reply #371 on: January 08, 2018, 03:27:51 PM »
Brookfield are real asset operators that recently began putting money to work for clients. Almost everyone else has been managing money and is now trying to figure out the operational aspect

dutchman

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Re: BAM - Brookfield Asset Management
« Reply #372 on: January 08, 2018, 04:18:45 PM »
Is BAM.A  the right ticker for toronto ?

ICUMD

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Re: BAM - Brookfield Asset Management
« Reply #373 on: January 08, 2018, 04:41:16 PM »
Would appreciate some help understanding valuation of this company and some of its subsidiaries.

Brookfield Asset Management BAM.A:  PE ratio is 30, BV is 34 (P/B is 1.6).  50% debt to capital load.  It appears on the surface to be overvalued by these metrics.  I like the business a lot, but why should I buy it now?

Brookfield Business Partners BBU.UN: PE ratio is 75, BV is $60 (P/B is 0.78). 37% debt to capital load.  Better value???

Brookfield Infrastructure Partners BIP.UN:  PE 36, BV 19.32 (P/B is 2.84). 44% debt to capital load.  Very overvalued?

I'm sure I'm oversimplifying everything here and I love the underlying business, but would it not be a risk going into a market correction given these values?
With the exception of BBU.UN, they all seem overvalued (assuming my values are correct...)

Thanks!
FIH.U TCEHY, IFFNY, BRK.B

gokou3

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Re: BAM - Brookfield Asset Management
« Reply #374 on: January 08, 2018, 04:58:28 PM »
Folding BAM into BRK kinda makes sense for both.  BAM can put BRK cash to good use, especially since a lot of stuff is capital/organic/M&A intensive, and has loads of operational expertise.  BAM doesn't have to be as dependent on various funding source. 

But my sense is that unless BRK gives a great deal, BAM is more than happy with whatever it's doing.  BAM might get some benefits under BRK, but it can do any deal it wants with what it has.  And like BRK, BAM seems to take enormous pride with working with their investors.

There are also lots of different insider/controlling shareholders (from what I understand) to work out a BAM sale.

BRK should just participate in BAM's fund-raising effort.  BRK will get a good return of its idle cash (above what it can do on its own), BAM has good growth opportunities.

spark411

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Re: BAM - Brookfield Asset Management
« Reply #375 on: January 08, 2018, 06:49:40 PM »
Does anyone have a good breakout of the valuation of BAM?   I'm trying to sort out how much the value is from the asset management business and how much of the value is the underlying holdings of it's subsidiaries like BPY, BIP, BEP, etc.    Thanks in advance.

chrispy

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Re: BAM - Brookfield Asset Management
« Reply #376 on: January 09, 2018, 04:55:19 AM »
This may have been posted before, but here is a good place to start:

Brookfield Asset Management: Value Growth Over Next 5 Years https://seekingalpha.com/article/4112673?source=ansh

Uccmal

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Re: BAM - Brookfield Asset Management
« Reply #377 on: January 09, 2018, 05:28:03 AM »
Would appreciate some help understanding valuation of this company and some of its subsidiaries.

Brookfield Asset Management BAM.A:  PE ratio is 30, BV is 34 (P/B is 1.6).  50% debt to capital load.  It appears on the surface to be overvalued by these metrics.  I like the business a lot, but why should I buy it now?

Brookfield Business Partners BBU.UN: PE ratio is 75, BV is $60 (P/B is 0.78). 37% debt to capital load.  Better value???

Brookfield Infrastructure Partners BIP.UN:  PE 36, BV 19.32 (P/B is 2.84). 44% debt to capital load.  Very overvalued?

I'm sure I'm oversimplifying everything here and I love the underlying business, but would it not be a risk going into a market correction given these values?
With the exception of BBU.UN, they all seem overvalued (assuming my values are correct...)

Thanks!

Its hard to say.  Other board members and I were discussing this privately when I was building my position in BAM.a in 2017.  These companies are going to grow alot in the next few years, and I am sure there will be pullbacks.  But I bought Bep.un at 75% of todays price (1.5 years ago), and Bam.a 6% cheaper (through last year).  I suppose it depends on when a pull back occurs.  If its tomorrow I will be underwater.  If it goes up 30% from here and pulls back 20% I wont notice.  I may buy more. 

Right now I am not adding because I have a sizable position, amd can wait to add more.  I may edit this post because my 8  yr. old is bugging me and I cant concentrate.
GARP tending toward value

villainx

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Re: BAM - Brookfield Asset Management
« Reply #378 on: January 09, 2018, 08:55:26 AM »
Seems like it wouldn't be hard to bring that expertise in house via hiring... After all, paying a team $10-20m a year is nothing if they can put billions to work.

It's one of the reason BAM and their various subs are worthwhile investment options.  Not only operational expertise, but a lot of experience working in various governmental, regulatory, political, etc situations.  The scale of the real asset purchases is likely something you want to be fairly certain you can pull off profitably.

But with regards to partnering with BAM, BRK partners with 3G.  If BAM ever needed BRK's backing, seems like a way in.  But BAM's approach is likely more conservative/value oriented/long term - and they've seem to be okay with getting the capital they need.

Og

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Re: BAM - Brookfield Asset Management
« Reply #379 on: January 09, 2018, 09:53:54 AM »
Would appreciate some help understanding valuation of this company and some of its subsidiaries.

Brookfield Asset Management BAM.A:  PE ratio is 30, BV is 34 (P/B is 1.6).  50% debt to capital load.  It appears on the surface to be overvalued by these metrics.  I like the business a lot, but why should I buy it now?

Brookfield Business Partners BBU.UN: PE ratio is 75, BV is $60 (P/B is 0.78). 37% debt to capital load.  Better value???

Brookfield Infrastructure Partners BIP.UN:  PE 36, BV 19.32 (P/B is 2.84). 44% debt to capital load.  Very overvalued?

I'm sure I'm oversimplifying everything here and I love the underlying business, but would it not be a risk going into a market correction given these values?
With the exception of BBU.UN, they all seem overvalued (assuming my values are correct...)

Thanks!

Partners Value Investments LP can be purchased at double digit discounts (at times) and the majority of their book value is in BAM stock. It's also levered up with preferred stock. Units are thinly traded as about 90% of the float is owned by BAM management. However, if you are able to get an order in (with patience) and double digit discounts to NAV (I've seen it near 20% before), and are willing to wait a few years, you should do even better than if just owning the common in that scenario.

As for valuation of BAM stock -- I'd recommend first checking out their investor presentations. They do a pretty good job on explaining on they value their company and their estimates tend to be on the conservative side.