Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Brookfield Finance Inc. 4.50% P (BNJ)

Company Dividend Discount ModelIndustry: Investment - Banking & Investment ServicesSector: Financial Services

Valuation Snapshot

Stable Growth$21.58 - $82.07$62.72
Multi-Stage$26.90 - $29.56$28.20
Blended Fair Value$45.46
Current Price$41.23
Upside10.26%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-8.50%-0.90%0.210.190.370.570.390.330.310.290.270.25
YoY Growth--13.53%-50.40%-34.30%46.58%18.24%6.34%5.99%8.21%8.39%7.75%
Dividend Yield--0.60%0.67%1.72%1.85%1.60%2.05%1.80%2.09%2.04%2.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)996.00
(-) Cash Dividends Paid (M)702.33
(=) Cash Retained (M)293.67
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)199.20124.5074.70
Cash Retained (M)293.67293.67293.67
(-) Cash Required (M)-199.20-124.50-74.70
(=) Excess Retained (M)94.47169.17218.97
(/) Shares Outstanding (M)2,354.362,354.362,354.36
(=) Excess Retained per Share0.040.070.09
LTM Dividend per Share0.300.300.30
(+) Excess Retained per Share0.040.070.09
(=) Adjusted Dividend0.340.370.39
WACC / Discount Rate4.48%4.48%4.48%
Growth Rate2.86%3.86%4.86%
Fair Value$21.58$62.72$82.07
Upside / Downside-47.65%52.11%99.05%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)996.001,034.491,074.461,115.981,159.101,203.891,240.00
Payout Ratio70.51%74.41%78.31%82.21%86.10%90.00%92.50%
Projected Dividends (M)702.33769.78841.40917.40998.021,083.501,147.00

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate4.48%4.48%4.48%
Growth Rate2.86%3.86%4.86%
Year 1 PV (M)729.70736.79743.89
Year 2 PV (M)756.06770.83785.74
Year 3 PV (M)781.43804.44827.90
Year 4 PV (M)805.84837.63870.36
Year 5 PV (M)829.31870.41913.12
PV of Terminal Value (M)59,436.7562,382.5765,444.04
Equity Value (M)63,339.0866,402.6769,585.06
Shares Outstanding (M)2,354.362,354.362,354.36
Fair Value$26.90$28.20$29.56
Upside / Downside-34.75%-31.59%-28.31%

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