Brookfield Corporation (BN): Q4 2025 Results Breakdown
Price: $47 | Intrinsic Value (Management’s View): $68 | Discount: ~31%
Record Year, But Is The Stock Finally Cheap?
Brookfield just reported Q4 2025 results, and the numbers are strong. Record fundraising. Record asset sales. Record distributable earnings. Yet the stock sits at $47—a full 31% below management’s stated intrinsic value of $68 per share.
The question isn’t whether Brookfield had a good year (they did). The question is: At $47, is this finally a buy, or is there something broken under the hood?
Let’s break down the results and run the napkin math.
1. The Machine (What You’re Actually Buying)
Brookfield is a three-headed beast:
Engine #1: Asset Management (BAM)
$603 billion in fee-bearing capital (+12% YoY)
$112 billion raised in 2025 (record year)
Fee-related earnings: $3.0 billion (+22% YoY)
Annualized cash flow: $1.9 billion
Translation: This is the money printer. Every dollar of fee-bearing capital generates ~1.0% in fee-related earnings (after costs). And they just grew fee-bearing capital by $64 billion in one year. That’s $640 million of new annual earnings power added in 12 months.
Engine #2: Wealth Solutions (Insurance Float)
$143 billion in insurance assets
Annualized cash flow: $1.9 billion
15% ROE (down from 31% in 2023, but still world-class)
Net investment yield: 5.7%
Cost of funds: 3.5%
Gross spread: 2.25%
Translation: They collect insurance premiums (annuities, P&C), invest the float at 5.7%, and pay out 3.5%. The 2.25% spread generates $1.9 billion annually. This is Berkshire Hathaway’s playbook, but focused on real assets.
Engine #3: Operating Businesses
Renewable Power (BEP): $8.5 billion equity value
Infrastructure (BIP): $7.3 billion equity value
Private Equity (BBU): $3.2 billion equity value
Real Estate (BPG): $26.5 billion equity value
Total annualized cash flow: $1.5 billion
Translation: These are permanent capital vehicles that own toll roads, data centers, hydroelectric dams, and trophy office buildings. They throw off $1.5 billion in annual distributions to BN.
2. The Napkin Math: What’s It Worth?
Step 1: Add Up the Cash Flows
BusinessAnnualized Cash Flow
Asset Management (BAM)$1.9B
Wealth Solutions$1.9B
Operating Businesses$1.5B
Total (before corporate costs)$5.3B
Corporate costs & interest-$0.9B
Net Cash Flow $4.4B
Step 2: Adjust for Carry and Realizations
Brookfield has $11.6 billion of accumulated unrealized carried interest sitting on the balance sheet. Over the next 3 years, they expect to realize ~$6 billion of this (net of costs). That’s $2 billion/year of bonus cash flow.
Adjusted Annual Cash Flow: $4.4B + $2.0B = $6.4 billion
Step 3: Value the Business
Method 1: Multiple of Earnings
Blackstone (BX) trades at 25x P/E
KKR trades at 22x P/E
Apollo (APO) trades at 24x P/E
Brookfield’s Distributable Earnings (DE) = $6.0 billion (2025 actual, including realizations).
Current Market Cap = $103 billion
Current P/E = 17.2x (= $103B / $6.0B)
At 20x P/E (middle of peer range): $6.0B × 20 = $120 billion market cap
Implied share price: $120B / 2.38B shares = $50.42/share (+7% upside)
At 23x P/E (average of peers): $6.0B × 23 = $138 billion market cap
Implied share price: $138B / 2.38B shares = $58/share (+23% upside)
Method 2: Sum-of-the-Parts (Management’s Approach)
Management breaks it down like this:
BAM (69% stake): $61.5B (using $52.39/share × 1.19B shares)
Carried Interest (10x multiple on $2.7B net target carry): $27.0B
Wealth Solutions (15x annualized DE of $1.9B): $28.0B
Operating Businesses: $46.4B (market value of BEP, BIP, BBU, BPG)
Less: Corporate debt & preferred: -$18.6B
Total: $144 billion / 2.38B shares = $60.50/share
Management says $68. I’m getting $50-60 depending on method. Let’s split the difference and call it $55 fair value.
3. The Yield Calculation
At $47/share: