Q: Hello,
TD believes the following on BN
After subtracting the market value of BN's stakes in BAM/BEP/BIP, the stock is ascribing negative value to the stake in BBU (~$1.75/share), real-estate (~$20.00/share), insurance (~$2.50/share), and carried interest (~$3.60/share). BN's ~$4bln of annual FCF provides considerable firepower to address the discount, although share buybacks must be weighed against the prospect of growing the franchise. We believe that BN's conviction in the intrinsic value of its stock price is evidenced by ~$750mm of TTM share repurchases and ~ $100mm of share purchases in the open market by the senior executive team.
Couple questions
1. This is the first time I have seen the value of BN being just reflected as just BIP,BEP, and BAM. Would you agree with this.
2. If you agree, isn’t it extremely compelling to get BBU, Reinsurance, oaktree, and property for free?
3. Would you agree with the $61 USD target or 90% upside?
Thank you!
TD believes the following on BN
After subtracting the market value of BN's stakes in BAM/BEP/BIP, the stock is ascribing negative value to the stake in BBU (~$1.75/share), real-estate (~$20.00/share), insurance (~$2.50/share), and carried interest (~$3.60/share). BN's ~$4bln of annual FCF provides considerable firepower to address the discount, although share buybacks must be weighed against the prospect of growing the franchise. We believe that BN's conviction in the intrinsic value of its stock price is evidenced by ~$750mm of TTM share repurchases and ~ $100mm of share purchases in the open market by the senior executive team.
Couple questions
1. This is the first time I have seen the value of BN being just reflected as just BIP,BEP, and BAM. Would you agree with this.
2. If you agree, isn’t it extremely compelling to get BBU, Reinsurance, oaktree, and property for free?
3. Would you agree with the $61 USD target or 90% upside?
Thank you!
