Brookfield Corporation (BN) Discounted Future Market Cap

Brookfield Corporation

BN (NYSE)

(%)

Valuation
Brookfield Corporation Discounted Future Market Cap

"""
    Model: Discounted Future Market Cap

# Render model description
model.render_description(r"""
## Discounted Future Market Cap

This model estimates the intrinsic value of a common share by projecting the Future Market Capitalization using the estimated PE Ratio and then discounting it to the Present using an Annual Required Rate of Return.
""")

# Initialize assumptions
assumptions.init({
    "data": {
        "%discount_rate": None,
        "beta": data.get("profile:beta", default=1),
        "%risk_free_rate": data.get("treasury:year10"),
        "%market_premium": data.get("risk:totalEquityRiskPremium"),
        "pe_ratio": data.get("ratio:priceEarningsRatio"),
        "%revenue_growth_rate": None,
        "%net_income_margin": None,
        "historical_years": 10,
        "projection_years": 5,
    },
    "hierarchies": [{
        "parent": "%discount_rate",
        "children": ["beta", "%risk_free_rate", "%market_premium"]
    }]
})

# Calculate cost of equity
cost_of_equity = assumptions.get("%risk_free_rate") + assumptions.get("beta") * assumptions.get("%market_premium")
assumptions.set("%discount_rate", cost_of_equity)

# Compute metrics
data.compute({
    "%grossMargin": "income:grossProfit / income:revenue",
    "%operating_margin": "income:operatingIncome / income:revenue",
    "%netMargin": "income:netIncome / income:revenue",
    "%revenueGrowthRate": "function:growth:income:revenue",
    "%netIncomeGrowthRate": "function:growth:income:netIncome",
    "%totalStockholdersEquityGrowthRate": "function:growth:balance:totalStockholdersEquity",

# Calculating NOPAT (Net Operating Profit After Taxes)
    "%taxRate": "income:incomeTaxExpense / income:incomeBeforeTax",
    "incomeTax": "income:operatingIncome * %taxRate",
    "nopat": "income:operatingIncome - incomeTax",

# Calculating Invested Capital
    "investedCapital": [
        "balance:totalNonCurrentAssets", "-", "balance:cashAndCashEquivalents", "+",
        "balance:totalCurrentAssets", "-", "balance:totalCurrentLiabilities"
    ],
    "%roic": "nopat / investedCapital",
})

data.set_default_range(f"{-assumptions.get('historical_years')}->0")

assumptions.set("%net_income_margin", data.average(f"%netMargin"))
assumptions.set_bounds(
    "%net_income_margin", low=0, high="100%"
)

assumptions.set("%revenue_growth_rate", data.average(f"%revenueGrowthRate"))
assumptions.set_bounds(
    "%revenue_growth_rate", low=0, high="25%"
)

# Compute forecasted values and ratios
data.compute({
    "income:revenue": f"""
        income:revenue:-1 * 
        (1 + {assumptions.get('%revenue_growth_rate')})
    """,
    "%revenueGrowthRate": "function:growth:income:revenue",
    "income:netIncome": f"income:revenue * {assumptions.get('%net_income_margin')}",
}, forecast=assumptions.get("projection_years"))

projected_revenue = data.get("income:revenue")
projected_net_income = data.get(f"income:netIncome:{assumptions.get('projection_years')}")

shares_outstanding = data.get("income:weightedAverageShsOut")
future_market_cap = assumptions.get("pe_ratio") * projected_net_income
discounted_future_market_cap = future_market_cap / (
            (1 + assumptions.get("%discount_rate")) ** assumptions.get("projection_years"))

stock_value = discounted_future_market_cap / shares_outstanding

# Set the final value
model.set_final_value({
    "value": stock_value,
    "units": "$"
})

# Render results
model.render_results([
    [stock_value, "Present Value", "$"],
    [projected_net_income, "Estimated net income", "$"],
    [future_market_cap, "Estimated market capitalization", "$"],
    [discounted_future_market_cap, "Market capitalization discounted to present", "$"],
    [shares_outstanding, "Shares Outstanding", "#"],
    [data.get("income:eps"), "Earnings Per Share (EPS)", "$"],
    [data.get("profile:price"), "Market Price", "$"],
    [data.get("ratio:priceEarningsRatio"), "Price to Earnings (PE) Ratio", "#"]
])

# Render chart
model.render_chart({
    "data": {
        "income:revenue": "Revenue",
        "income:netIncome": "Net Income"
    },
    "start": -assumptions.get("historical_years"),
    "end": "*",
    "properties": {
        "title": "Historical and forecasted data",
        "set_editable": [
            "income:revenue",
            "income:netIncome"
        ]
    }
})

# Render table for estimated future values
model.render_table({
    "data": {
        "income:revenue": "Revenue",
        "%revenueGrowthRate": "Revenue Growth Rate",
        "income:netIncome": "Net Income",
    },
    "start": -1,
    "end": "*",
    "properties": {
        "title": "Estimated Future Values",
        "order": "ascending",
        "number_format": "M"
    }
})

# Render historical values table
model.render_table({
    "data": {
        "income:revenue": "Revenue",
        "income:costOfRevenue": "Cost of Revenue",
        "income:grossProfit": "Gross Profit",
        "%grossMargin": "Gross Margin",
        "income:operatingIncome": "Operating Income",
        "%operating_margin": "Operating Margin",
        "income:netIncome": "Net Income",
        "%netMargin": "Net Margin",
    },
    "start": -assumptions.get("historical_years"),
    "end": 0,
    "properties": {
        "title": "Historical Values",
        "display_averages": True,
        "order": "descending",
        "number_format": "M"
    },
})

# Render historical growth rates table
model.render_table({
    "data": {
        "income:revenue": "Revenue",
        "%revenueGrowthRate": "Revenue Growth Rate",
        "income:netIncome": "Net Income",
        "%netMargin": "Net Margin",
        "%netIncomeGrowthRate": "Net Income Growth Rate",
        "balance:totalStockholdersEquity": "Stockholders Equity",
        "%totalStockholdersEquityGrowthRate": "Equity Growth Rate",
        "%roic": "Return on Invested Capital (ROIC)",
        "nopat": "After-tax Operating Income",
        "%taxRate": "Income Tax Rate",
        "investedCapital": "Invested Capital",
    },
    "start": -assumptions.get("historical_years"),
    "end": 0,
    "properties": {
        "title": "Historical Growth Rates",
        "display_averages": True,
        "order": "descending",
        "number_format": "M"
    },
})

# Set description for assumptions
assumptions.set_description({
    "%discount_rate": r"""
        ## Discount Rate

`Discount Rate` = `Cost of Equity` = `Risk Free Rate` + `Beta` * `Market Premium`

The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula.

[Read More](https://www.investopedia.com/terms/c/costofequity.asp#mntl-sc-block_1-0-20)
    """,

"beta": r"""
        ## Beta

Beta is a value that measures the price fluctuations (volatility) of a stock with respect to fluctuations in the overall stock market.
    """,

"%risk_free_rate": r"""
        ## Risk-Free Rate

The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time.
        By default, it is equal to the current yield of the U.S. 10 Year Treasury Bond.
    """,

"%market_premium": r"""
        ## Market Premium

Market risk premium represents the excess returns over the risk-free rate that investors expect for taking on the incremental risks connected to the equities market.
    """,

"pe_ratio": r"""
        ## Price to Earnings (PE) Ratio

Estimated Price to Earnings (PE) Ratio at the end of the projection period.

`Future Market Cap` = `PE Ratio` * `Projected Net Income`
    """,

"%revenue_growth_rate": r"""
        ## Revenue Growth Rate

The annual revenue growth rate is applied to projected revenue starting from the second projection year onward.
    """,

"%net_income_margin": r"""
        ## Net Income Margin

Net Income expressed as a percentage of Revenue.
    """,

"historical_years": r"""
        ## Historical Years

The number of historical years used to calculate averages for historical data.
    """,

"projection_years": r"""
        ## Projection Years

The number of years for projecting the analysis into the future.
    """,
})

print("End of model.")

Estimated Value

USD

Market Price USD

* Values are not guaranteed, please do your own
research before making investment decisions.

Discounted Future Market Cap

Interactive Assumptions

Discount Rate Discount Rate Discount Rate `Discount Rate` = `Cost of Equity` = `Risk Free Rate` + `Beta` * `Market Premium` The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula. Read More	%
↳ Beta Beta Beta Beta is a value that measures the price fluctuations (volatility) of a stock with respect to fluctuations in the overall stock market.	#
↳ Risk Free Rate Risk Free Rate Risk-Free Rate The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time. By default, it is equal to the current yield of the U.S. 10 Year Treasury Bond.	%
↳ Market Premium Market Premium Market Premium Market risk premium represents the excess returns over the risk-free rate that investors expect for taking on the incremental risks connected to the equities market.	%
Pe Ratio Pe Ratio Price to Earnings (PE) Ratio Estimated Price to Earnings (PE) Ratio at the end of the projection period. `Future Market Cap` = `PE Ratio` * `Projected Net Income`	#
Revenue Growth Rate Revenue Growth Rate Revenue Growth Rate The annual revenue growth rate is applied to projected revenue starting from the second projection year onward.	%
Net Income Margin Net Income Margin Net Income Margin Net Income expressed as a percentage of Revenue.	%
Historical Years Historical Years Historical Years The number of historical years used to calculate averages for historical data.	#
Projection Years Projection Years Projection Years The number of years for projecting the analysis into the future.	#

Results
Present Value	81.75 USD
Estimated net income	4.66 Bil. USD
Estimated market capitalization	367.6 Bil. USD
Market capitalization discounted to present	204.5 Bil. USD
Shares Outstanding	2.5 Bil.
Earnings Per Share (EPS)	0.503 USD
Market Price	41.2 USD
Price to Earnings (PE) Ratio	78.86

Historical and forecasted data

Monetary values in USD

{"sectionId": "section-chart-1", "sectionType": "chart", "title": "Historical and forecasted data", "timeseries": "annual", "series": [{"label": "Revenue", "mappingKey": "income:revenue", "data": [{"l": "2016", "x": "2016-12-31", "y": 24411000000}, {"l": "2017", "x": "2017-12-31", "y": 40786000000}, {"l": "2018", "x": "2018-12-31", "y": 56771000000}, {"l": "2019", "x": "2019-12-31", "y": 67826000000}, {"l": "2020", "x": "2020-12-31", "y": 62752000000}, {"l": "2021", "x": "2021-12-31", "y": 75731000000}, {"l": "2022", "x": "2022-12-31", "y": 92769000000}, {"l": "2023", "x": "2023-12-31", "y": 95924000000}, {"l": "2024", "x": "2024-12-31", "y": 86006000000}, {"l": "2025", "x": "2025-12-31", "y": 76128000000}, {"l": "2026", "x": "2026-12-31", "y": 87592876800, "oy": 87592876800, "e": true, "d": 2026, "g": 15.06, "og": 15.06}, {"l": "2027", "x": "2027-12-31", "y": 100784364046, "oy": 100784364046, "e": true, "d": 2027, "g": 15.06, "og": 15.06}, {"l": "2028", "x": "2028-12-31", "y": 115962489271, "oy": 115962489271, "e": true, "d": 2028, "g": 15.06, "og": 15.06}, {"l": "2029", "x": "2029-12-31", "y": 133426440155, "oy": 133426440155, "e": true, "d": 2029, "g": 15.06, "og": 15.06}, {"l": "2030", "x": "2030-12-31", "y": 153520462043, "oy": 153520462043, "e": true, "d": 2030, "g": 15.06, "og": 15.06}], "dataType": ".", "displayAs": "line", "dataTimeseries": "annual", "hidden": false}, {"label": "Net Income", "mappingKey": "income:netIncome", "data": [{"l": "2016", "x": "2016-12-31", "y": 1651000000}, {"l": "2017", "x": "2017-12-31", "y": 1462000000}, {"l": "2018", "x": "2018-12-31", "y": 3584000000}, {"l": "2019", "x": "2019-12-31", "y": 2807000000}, {"l": "2020", "x": "2020-12-31", "y": -134000000}, {"l": "2021", "x": "2021-12-31", "y": 3966000000}, {"l": "2022", "x": "2022-12-31", "y": 2056000000}, {"l": "2023", "x": "2023-12-31", "y": 1130000000}, {"l": "2024", "x": "2024-12-31", "y": 641000000}, {"l": "2025", "x": "2025-12-31", "y": 1307000000}, {"l": "2026", "x": "2026-12-31", "y": 2659319739, "oy": 2659319739, "e": true, "d": 2026, "g": 103.5, "og": 103.5}, {"l": "2027", "x": "2027-12-31", "y": 3059813292, "oy": 3059813292, "e": true, "d": 2027, "g": 15.06, "og": 15.06}, {"l": "2028", "x": "2028-12-31", "y": 3520621174, "oy": 3520621174, "e": true, "d": 2028, "g": 15.06, "og": 15.06}, {"l": "2029", "x": "2029-12-31", "y": 4050826723, "oy": 4050826723, "e": true, "d": 2029, "g": 15.06, "og": 15.06}, {"l": "2030", "x": "2030-12-31", "y": 4660881227, "oy": 4660881227, "e": true, "d": 2030, "g": 15.06, "og": 15.06}], "dataType": ".", "displayAs": "line", "dataTimeseries": "annual", "hidden": false}], "editableDates": {"2026-12-31": 31, "2027-12-31": 32, "2028-12-31": 33, "2029-12-31": 34, "2030-12-31": 35}, "properties": {"display_table": true}, "width": "full"}

Edit Chart Values	2026-12-31	2027-12-31	2028-12-31	2029-12-31	2030-12-31

↳ Growth Rate

Estimated Future Values

Monetary values in USD amounts except #	2025 Dec 31	LTM Mar 09	2026 Dec 31	2027 Dec 31	2028 Dec 31	2029 Dec 31	2030 Dec 31
Revenue	76,128	76,128	87,593	100,784	115,962	133,426	153,520
Revenue Growth Rate	-11.49%	0%	15.06%	15.06%	15.06%	15.06%	15.06%
Net Income	1,307	1,307	2,659	3,060	3,521	4,051	4,661

Monetary values in USD

amounts except #

2025
Dec 31

LTM
Mar 09

2026
Dec 31

2027
Dec 31

2028
Dec 31

2029
Dec 31

2030
Dec 31

Revenue

76,128

87,593

100,784

115,962

133,426

153,520

Revenue Growth Rate

-11.49%

15.06%

Net Income

1,307

2,659

3,060

3,521

4,051

4,661

Historical Values

Monetary values in USD amounts except #	Average	LTM Mar 09	2025 Dec 31	2024 Dec 31	2023 Dec 31	2022 Dec 31	2021 Dec 31	2020 Dec 31	2019 Dec 31	2018 Dec 31	2017 Dec 31	2016 Dec 31
Revenue	68,657	76,128	76,128	86,006	95,924	92,769	75,731	62,752	67,826	56,771	40,786	24,411
Cost of Revenue	52,798	46,594	46,594	67,936	81,409	78,511	64,000	47,386	52,728	45,519	32,388	17,718
Gross Profit	15,859	29,534	29,534	18,070	14,515	14,258	11,731	15,366	15,098	11,252	8,398	6,693
Gross Margin	23.56%	38.8%	38.8%	21.01%	15.13%	15.37%	15.49%	24.49%	22.26%	19.82%	20.59%	27.42%
Operating Income	12,721	21,776	21,776	17,994	14,446	14,136	11,615	9,474	10,124	8,046	5,958	4,581
Operating Margin	18.3%	28.6%	28.6%	20.92%	15.06%	15.24%	15.34%	15.1%	14.93%	14.17%	14.61%	18.77%
Net Income	1,798	1,307	1,307	641	1,130	2,056	3,966	-134	2,807	3,584	1,462	1,651
Net Margin	3.04%	1.72%	1.72%	0.745%	1.18%	2.22%	5.24%	-0.214%	4.14%	6.31%	3.58%	6.76%

Historical Growth Rates

Monetary values in USD amounts except #	Average	LTM Mar 09	2025 Dec 31	2024 Dec 31	2023 Dec 31	2022 Dec 31	2021 Dec 31	2020 Dec 31	2019 Dec 31	2018 Dec 31	2017 Dec 31	2016 Dec 31
Revenue	68,657	76,128	76,128	86,006	95,924	92,769	75,731	62,752	67,826	56,771	40,786	24,411
Revenue Growth Rate	15.05%	0%	-11.49%	-10.34%	3.4%	22.5%	20.68%	-7.48%	19.47%	39.19%	67.08%	22.59%
Net Income	1,798	1,307	1,307	641	1,130	2,056	3,966	-134	2,807	3,584	1,462	1,651
Net Margin	3.04%	1.72%	1.72%	0.745%	1.18%	2.22%	5.24%	-0.214%	4.14%	6.31%	3.58%	6.76%
Net Income Growth Rate	-283.2%	0%	103.9%	-43.27%	-45.04%	-48.16%	-3,060%	-104.8%	-21.68%	145.1%	-11.45%	-29.47%
Stockholders Equity	39,363	47,886	47,886	45,977	45,777	43,753	46,355	35,838	35,013	29,815	28,244	26,453
Equity Growth Rate	6.33%	0%	4.15%	0.437%	4.63%	-5.61%	29.35%	2.36%	17.43%	5.56%	6.77%	4.53%
Return on Invested Capital (ROIC)	3.2%	3.66%	3.66%	3.02%	3.11%	3.16%	3.12%	1.53%	3.35%	3.76%	3.2%	3.67%
After-tax Operating Income	9,922	16,120	16,120	11,761	12,058	11,020	9,780	4,338	9,267	8,322	5,251	5,109
Income Tax Rate	18.23%	25.97%	25.97%	34.64%	16.53%	22.04%	15.8%	54.21%	8.46%	-3.43%	11.87%	-11.53%
Invested Capital	309,624	440,381	440,381	389,256	387,739	349,141	313,234	284,260	276,576	221,583	164,150	139,158

Market is Open

After-Hours Quote

Market is Open

After-Hours Quote

Brookfield Corporation Discounted Future Market Cap

Estimated Value

USD

Market Price USD

Discounted Future Market Cap

Interactive Assumptions

Discount Rate

Discount Rate

Beta

Beta

Risk Free Rate

Risk-Free Rate

Market Premium

Market Premium

Pe Ratio

Price to Earnings (PE) Ratio

Revenue Growth Rate

Revenue Growth Rate

Net Income Margin

Net Income Margin

Historical Years

Historical Years

Projection Years

Projection Years

Results

Historical and forecasted data

Estimated Future Values

Historical Values

Historical Growth Rates

Discounted Cash Flow to Firm - Perpetual Growth

Earnings Power Value

Simple Dividend Discount Model

Simple Excess Return Model

Two-Stage Dividend Discount Model

Two-Stage Excess Return Model

Discounted Cash Flow to Firm - Exit Multiple

Discounted Future Market Cap

Peter Lynch Fair Value

Altman Z-Score

Beneish M-Score

Capital Asset Pricing Model (CAPM)

Margin Analysis

Piotroski F-Score

Return on Invested Capital (ROIC)

Shiller PE (CAPE) Ratio

Weighted Average Cost of Capital (WACC)