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Brookfield (TSX:BN) Shiller PE Ratio : 27.70 (As of Apr. 27, 2024)


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What is Brookfield Shiller PE Ratio?

As of today (2024-04-27), Brookfield's current share price is C$55.96. Brookfield's E10 for the quarter that ended in Dec. 2023 was C$2.02. Brookfield's Shiller PE Ratio for today is 27.70.

The historical rank and industry rank for Brookfield's Shiller PE Ratio or its related term are showing as below:

TSX:BN' s Shiller PE Ratio Range Over the Past 10 Years
Min: 13.21   Med: 20.91   Max: 33.65
Current: 27.64

During the past years, Brookfield's highest Shiller PE Ratio was 33.65. The lowest was 13.21. And the median was 20.91.

TSX:BN's Shiller PE Ratio is ranked worse than
86.79% of 757 companies
in the Asset Management industry
Industry Median: 12.63 vs TSX:BN: 27.64

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Brookfield's adjusted earnings per share data for the three months ended in Dec. 2023 was C$0.563. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is C$2.02 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Brookfield Shiller PE Ratio Historical Data

The historical data trend for Brookfield's Shiller PE 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 Shiller PE Ratio Chart

Brookfield Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.41 25.45 32.63 20.75 26.25

Brookfield Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Shiller PE 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 20.75 21.38 21.54 20.91 26.25

Competitive Comparison of Brookfield's Shiller PE Ratio

For the Asset Management subindustry, Brookfield's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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 Shiller PE Ratio Distribution in the Asset Management Industry

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

* The bar in red indicates where Brookfield's Shiller PE Ratio falls into.



Brookfield Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Brookfield's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=55.96/2.02
=27.70

* 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 E10 for the quarter that ended in Dec. 2023 is calculated as:

For example, Brookfield's adjusted earnings per share data for the three months ended in Dec. 2023 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=0.563/125.4675*125.4675
=0.563

Current CPI (Dec. 2023) = 125.4675.

Brookfield Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201403 0.392 98.604 0.499
201406 0.570 99.473 0.719
201409 0.536 99.394 0.677
201412 0.815 98.367 1.040
201503 0.614 99.789 0.772
201506 0.511 100.500 0.638
201509 0.230 100.421 0.287
201512 0.603 99.947 0.757
201603 0.203 101.054 0.252
201606 0.129 102.002 0.159
201609 0.900 101.765 1.110
201612 0.124 101.449 0.153
201703 -0.071 102.634 -0.087
201706 0.168 103.029 0.205
201709 0.164 103.345 0.199
201712 0.868 103.345 1.054
201803 0.724 105.004 0.865
201806 0.542 105.557 0.644
201809 0.096 105.636 0.114
201812 1.675 105.399 1.994
201903 0.521 106.979 0.611
201906 0.319 107.690 0.372
201909 0.808 107.611 0.942
201912 0.650 107.769 0.757
202003 -0.279 107.927 -0.324
202006 -0.583 108.401 -0.675
202009 0.132 108.164 0.153
202012 0.512 108.559 0.592
202103 0.968 110.298 1.101
202106 0.599 111.720 0.673
202109 0.596 112.905 0.662
202112 0.858 113.774 0.946
202203 1.025 117.646 1.093
202206 0.435 120.806 0.452
202209 0.320 120.648 0.333
202212 -0.312 120.964 -0.324
202303 0.068 122.702 0.070
202306 0.040 124.203 0.040
202309 0.162 125.230 0.162
202312 0.563 125.468 0.563

Add all the adjusted EPS together and divide 10 will get our E10.

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) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Brookfield Shiller PE Ratio Related Terms

Thank you for viewing the detailed overview of Brookfield's Shiller PE 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.