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Brookfield BusinessTSX:BBUC -2.24%55 Pretax Margin % is 4.47% as of Mar. 2026, which is 178% above its 10-year median of 1.61. GuruFocus rates TSX:BBUC with a GF Score™ of 55/100 and a GF Value™ of C$12.19 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 551 Conglomerates companies, Brookfield Business ranks worse than 73.5% on this metric.
The historical rank and industry rank for Brookfield Business's Pretax Margin % or its related term are showing as below:
TSX:BBUC'
s Pretax Margin % Range Over the Past 10 Years
Min: -2.74 Med: 1.61 Max: 6.76
Current: 1.39
TSX:BBUC's Pretax Margin % is ranked worse than 73.5% of 551
companies
in the Conglomerates industry
Industry Median: 6.45
vs TSX:BBUC: 1.39
Brookfield Business (TSX:BBUC) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Brookfield Business Pretax Margin % Related Terms
Brookfield Business Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Brookfield Business's Pretax Margin % 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.
For the Conglomerates subindustry, Brookfield Business's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Business Pretax Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Brookfield Business's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Brookfield Business's Pretax Margin % falls into.
* 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 Business (TSX:BBUC) has a Pretax Margin % of 4.47% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Brookfield Business and its competitors. This is 178% above median its historical median of 1.61. According to the industry distribution chart, Brookfield Business ranks #405 out of 551 companies in the Conglomerates industry, placing it in the top 73.5%.
Is Brookfield Business' Pretax Margin % too high?
Brookfield Business' current Pretax Margin % of 4.47% is 178% above median its 10-year median of 1.61. The Conglomerates industry median Pretax Margin % is 6.45. Brookfield Business' value of 4.47% is 30.7% below this industry median. Based on the distribution chart, Brookfield Business ranks #405 out of 551 companies in the Conglomerates industry, which is below the industry midpoint. Overall, Brookfield Business has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Brookfield Business' Pretax Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Brookfield Business ranks #405 out of 551 companies for Pretax Margin %. This places Brookfield Business in the lower half of its industry. The industry median Pretax Margin % is 6.45. Brookfield Business' value of 4.47% is 30.7% below this benchmark. While the company's 10-year median is 1.61 vs. the industry median of 6.45, Brookfield Business has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Conglomerates company?
The median Pretax Margin % among Conglomerates companies is 6.45, based on 551 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Brookfield Business's current Pretax Margin % of 4.47% is 30.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Brookfield Business and its competitors. For the Conglomerates industry, the median Pretax Margin % is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Brookfield Business's current Pretax Margin % is 4.47%, which is 178% above median its own 10-year median of 1.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Brookfield Business stock overvalued right now?
Based on GuruFocus' analysis, Brookfield Business (TSX:BBUC) is currently considered Significantly Overvalued. The stock's GF Value™ is C$12.19, compared to a current price of C$42.86 — trading 251.6% above its estimated fair value. The current Pretax Margin % is 4.47%, which is 178% above median its 10-year median of 1.61 and 30.7% below the Conglomerates industry median of 6.45. Brookfield Business' overall GF Score™ is 55/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Brookfield Business (TSX:BBUC), the current Pretax Margin % is 4.47% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Brookfield Business (TSX:BBUC) Overvalued in 2026?
Based on GuruFocus' analysis, Brookfield Business stock appears to be overvalued.
The current stock price of C$42.86 is trading 251.6% above its estimated GF Value™ of C$12.19.
GuruFocus considers Brookfield Business to be Significantly Overvalued.
Key valuation signals for TSX:BBUC:
Pretax Margin %: 4.47% (178% above median its 10-year median of 1.61)
GF Value™: C$12.19 vs. price of C$42.86 (251.6% above fair value)
Industry Position: 30.7% below the Conglomerates median (#405 of 551)
No single metric tells the full story. See the TSX:BBUC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Brookfield Business Corp is the operator of vital industrial and business services operations. The company focuses on acquiring market businesses for value, execute its operational improvement plans to increase cash flows and recycle capital to compound long-term growth. Geographically, it derives maximum revenue from the United States, and the rest from Europe, Brazil, Australia, Canada, and others. It operates in four segments within particular sectors namely: business services, infrastructure services, industrials, and corporate. The company derives maximum revenue from Industrials segment engaged in energy storage operations, engineered components manufacturing operations, water and wastewater operations, electric heat tracing systems manufacturer, and other industrials operations.
55GF Score
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