Your Portfolio, Our Perspective

Brookfield is down ~6% YTD and almost 9% over the last three months, trading at ~13x next year's distributable earnings with distributable earnings grown at a 22% CAGR since 2020. Management targets over $6.95 USD in distributable EPS by 2030 vs. $2.31 USD in 2025 (~25% CAGR), and expects $53 Billion USD of FCF over the next five years. They believe intrinsic value can grow from $68 USD per share to ~$140 USD by 2030.

“Brookfield (BN) is down ~6% YTD and almost 9% over the last three months. It trades at ~13x next years distributable earning and since 2020, distributable earnings have grown at a 22% CAGR (compounded annual growth rate). Management is targeting over $6.95 USD in distributable earnings per share by 2030, vs. $2.31 USD in 2025 translating into an expected 25% CAGR. Additionally, the company expects to generate $53 Billion USD of FCF over the next five years, representing close to half of its current market value. We believe the intrinsic value of the business can grow from $68 USD per share to ~$140 USD by 2030.”

Microsoft is down approximately 18% YTD and almost 30% off its 52-week high, trading at less than 25x this year's earnings with a 2.2% FCF yield. The firm believes earnings will continue growing at double digits over the next few years and the business is underpinned by one of the strongest balance sheets in the world.

“Microsoft (MSFT) is down approximately 18% YTD and almost 30% off its 52-week high. It is trading at less than 25x this year’s earnings with a 2.2% free cash flow (FCF) yield. We believe earnings will continue growing at double digits over the next few years and the business is underpinned by one of the strongest balance sheets in the world.”

S&P Global is a name they are adding to. The stock is down ~15% YTD and almost 25% off its 52-week high, trades at less than 23x this year's earnings and 20x next year's estimated EPS with a 4.5% FCF yield. They believe earnings will continue growing at a double-digit clip and reject the idea that AI will compromise SPGI's core business model.

“S&P Global (SPGI) is another name we are adding to. The stock price is down ~15% YTD and almost 25% off its 52-week high. It trades at less than 23x this year’s earnings and 20x next year estimated earnings per share (EPS) with a 4.5% FCF yield. We believe earnings will continue growing at a double-digit clip over the next few years and reject the idea that AI will compromise SPGI’s core business model.”

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