Is BROOKFIELD ASSET MANAGEMENT LTD (BAM) Stock Over or Undervalued?

Friday, March 01, 2024 10:24 AM | InvestorsObserver Analysts

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BROOKFIELD ASSET MANAGEMENT LTD (BAM) receives a strong valuation ranking of 73 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. BAM has a better value than 73% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

BAM gets a 73 Valuation Rank today. Find out what this means to you and get the rest of the rankings on BAM!
See Full BAM Report

Metrics Analysis

BAM's trailing-12-month Price to Earnings (PE) ratio of 36.84 puts it above the historical average of roughly 15. BAM is a poor value at its current trading price as investors are paying more than what its worth in relation to the company's earnings. BAM's trailing-12-month earnings per share (EPS) of 0.09 does not justify what it is currently trading at in the market. Trailing PE ratios, however, do not factor in a company's projected growth rate, resulting in some firms having high PE ratios due to high growth potentially enticing investors even if current earnings are low.
BAM has a 12 month forward PE to Growth (PEG) ratio of 1.48. Markets are overvaluing BAM in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 0.09's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.

Summary

BAM's valuation metrics are weak at its current price due to a overvalued PEG ratio despite strong growth. BAM's PE and PEG are worse than the market average resulting in a below average valuation score. Click Here to get the full Report on BROOKFIELD ASSET MANAGEMENT LTD (BAM) stock.

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