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Brookfield Reinsurance (Brookfield Reinsurance) Earnings Power Value (EPV) : $4.81 (As of Dec23)


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What is Brookfield Reinsurance Earnings Power Value (EPV)?

As of Dec23, Brookfield Reinsurance's earnings power value is $4.81. *

* GuruFocus does not store EPV value into our database if Average Maintenance CAPEX is 0.

Margin of Safety is N/A.

The basic concept of EPV is that one should value a stock based on the current free cash flow of a company and not on future projections which may, or may not, come true. It is arguably a better way to analyze stocks than Discounted Cash Flow analysis that relies on highly speculative growth assumptions many years into the future. Assumption: Current profitability is sustainable.


Brookfield Reinsurance Earnings Power Value (EPV) Historical Data

The historical data trend for Brookfield Reinsurance's Earnings Power Value (EPV) 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.

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Brookfield Reinsurance Earnings Power Value (EPV) Chart

Brookfield Reinsurance Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Earnings Power Value (EPV)
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Brookfield Reinsurance Quarterly Data
Dec18 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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Competitive Comparison of Brookfield Reinsurance's Earnings Power Value (EPV)

For the Insurance - Reinsurance subindustry, Brookfield Reinsurance's Earnings Power Value (EPV), along with its competitors' market caps and Earnings Power Value (EPV) 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 Reinsurance's Earnings Power Value (EPV) Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Brookfield Reinsurance's Earnings Power Value (EPV) distribution charts can be found below:

* The bar in red indicates where Brookfield Reinsurance's Earnings Power Value (EPV) falls into.



Brookfield Reinsurance Earnings Power Value (EPV) Calculation

Earnings Power Value also known as just Earnings Power is a valuation technique popularised by Bruce Greenwald, an authority on value investing at Columbia University. It is arguably a better way to analyze stocks than Discounted Cash Flow analysis that relies on highly speculative growth assumptions many years into the future.

The basic concept of EPV is that one should value a stock based on the current free cash flow of a company and not on future projections which may, or may not, come true. This valuation tool excludes the potential growth that a company may have so that needs to be looked at separately. Since future growth is excluded from the analysis, only the maintenance capital expenditures are subtracted from after-tax EBIT (earnings before interest and taxes) and growth capex is ignored.


Brookfield Reinsurance  (NYSE:BNRE) Earnings Power Value (EPV) Explanation

Assumption: Current profitability is sustainable.

Earnings power value (EPV) uses a very basic equation which assumes no growth, although it does rely on an assumption about the cost of capital as well as the fact that current earnings are sustainable. It also involves several adjustments to clean up the underlying Earnings figures.


Be Aware

Though using today's earnings in calculating Earnings Power Value, GuruFocus is normalizing these earnings to the business cycle. This eliminates the effects on profitability of valuing the firm at different points in the business cycle. This means that we are considering the average earnings over 5 years.


Brookfield Reinsurance Earnings Power Value (EPV) Related Terms

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Brookfield Reinsurance (Brookfield Reinsurance) Business Description

Traded in Other Exchanges
Address
94 Pitts Bay Road, Ideation House, First Floor, Pembroke, BMU, HM08
Brookfield Reinsurance Ltd owns and operates a reinsurance business focused on providing capital-based solutions to insurance companies and their stakeholders. The company offers a broad range of insurance products and services, including life insurance and annuities, and personal and commercial property and casualty insurance.