(BBU-UN) Brookfield Business - Ratings and Ratios

Brookfield Business Partners L.P. (BBU-UN) is a distinguished private equity firm under the Brookfield Corporation umbrella, renowned for its strategic focus on growth and acquisition. Their investment palette spans sectors like business services, infrastructure, construction, energy, and industrials, where they seek mature companies with latent growth potential.

BBUs approach is characterized by taking majority stakes, typically aiming for returns between 15% to 20%. They employ a long-term investment horizon, often holding assets for over a decade, which allows them to implement transformative strategies. Their value creation isnt just financial; they emphasize operational improvements and organic growth, sometimes even divesting non-core assets to enhance focus and efficiency.

As part of Brookfield Corporation, BBU leverages a global network and expertise in infrastructure and real assets, enhancing their competitive edge. Their teams deep sector knowledge and operational expertise are pivotal in driving portfolio companies success. Notably, they incorporate ESG considerations, recognizing their impact on long-term value creation.

From a financial standpoint, BBU boasts a market cap of 2.35 billion CAD, with a forward P/E ratio of 30.58, reflecting market expectations of significant growth. Their price-to-book ratio of 0.89 indicates a valuation that may attract value investors. While their P/S ratio of 0.05 suggests a focus on profitability over revenue growth.

For investors, BBU offers exposure to a diversified portfolio with a history of strong returns, though its important to consider the inherent risks of private equity, including illiquidity. Their alignment with Brookfield Corporation and robust risk management practices make them a compelling choice for those seeking private equity exposure through a publicly traded vehicle.