A Look At Brookfield Business Partners (NYSE:BBU) Valuation After Earnings, Buyback Completion And Dividend Confirmation

Why Brookfield Business Partners Stock Is Back on Investors’ Radar

Brookfield Business Partners (NYSE:BBU) just paired its 2025 earnings release with a fresh share buyback update and an affirmed dividend plan tied to its upcoming corporate reorganization, drawing fresh attention from income focused investors.

See our latest analysis for Brookfield Business Partners.

The confirmed dividend, completed 1% share buyback and narrowing annual net loss have arrived alongside stronger trading interest, with a 15.23% 90 day share price return and a 57.90% 1 year total shareholder return pointing to building momentum off a relatively modest year to date share price move.

If this sort of corporate activity has your attention, it could be a good moment to broaden your search and check out 22 top founder-led companies as potential next candidates on your radar.

With a US$36.08 share price, an implied discount to analyst targets and a wide gap to some intrinsic value estimates, the question now is simple: is Brookfield Business Partners still mispriced, or is the market already baking in future growth?

Preferred Price-to-Sales Multiple of 0.3x: Is It Justified?

On a P/S basis, Brookfield Business Partners looks inexpensive at first glance, with a 0.3x ratio against both a 2.1x peer average and a 0.9x global industrials average.

The P/S multiple compares the company’s market value to its revenue, which can be useful when earnings are negative or volatile. For a private equity style business that reports a net loss of $26 million on revenue of $27,457 million, focusing on revenue rather than profit can help frame how much investors are currently paying for each dollar of sales.

Compared to peers, the 0.3x P/S ratio sits well below the 2.1x average, and it is also below the 0.9x global industrials average. At the same time, it is in line with the estimated fair P/S ratio of 0.3x. This suggests the current level could be a reference point that the market may continue to hover around if conditions stay similar.

Explore the SWS fair ratio for Brookfield Business Partners

Result: Price-to-Sales of 0.3x (ABOUT RIGHT)

However, you still need to weigh the annual 38.79% revenue decline and the continuing net loss of US$26 million, which could challenge how sustainable this low P/S story is.

Find out about the key risks to this Brookfield Business Partners narrative.

Another Angle: Our DCF Model Paints a Different Picture

While the 0.3x P/S ratio suggests Brookfield Business Partners is roughly in line with its fair ratio, our DCF model points in a different direction. On that view, the shares at $36.08 sit well below an estimated fair value of $109.28, implying a large valuation gap.

If you are weighing up which signal to pay more attention to, it might help to see how the assumptions stack up in detail. You can start by looking at how cash flows are treated and what discount rate is used. Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Brookfield Business Partners for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 52 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Brookfield Business Partners Narrative

If you would rather rely on your own judgment than ours, you can review the same data, test different assumptions, and build a custom story around Brookfield Business Partners in just a few minutes, then Do it your way.

A great starting point for your Brookfield Business Partners research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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