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Brookfield Corporation (BN): A Bull Case Theory

By Ricardo Pillai | August 04, 2025, 3:29 PM

We came across a bullish thesis on Brookfield Corporation on Capitalist Letters’s Substack by Oguz Erkan. In this article, we will summarize the bulls’ thesis on BN. Brookfield Corporation's share was trading at $67.55 as of July 28th. BN’s trailing and forward P/E were 232.93 and 23.87 respectively according to Yahoo Finance.

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A young professional in a suit examining tables of data and charts on a laptop, representing the company's sophisticated asset management services.

Brookfield Corporation (BN), the world’s largest alternative asset manager, remains widely underowned by retail investors due to its complex structure, yet it offers a compelling investment opportunity. Managing over $1 trillion across infrastructure, renewables, real estate, private equity, and credit, Brookfield operates through three synergistic segments: asset management, wealth solutions, and operating businesses, with its flagship Brookfield Asset Management (BAM) handling C-suite operations for its public entities under master service agreements.

This structure enables Brookfield to control assets, commit permanent capital, and maintain first access to deal flow, creating a perpetual engine for assets under management (AUM) growth. Its scale, track record, and internal capital from wealth and operating units allow it to invest countercyclically, deploying funds when competitors retreat. Brookfield is uniquely positioned to capitalize on secular tailwinds: alternative assets are projected to more than double to $60 trillion by 2032, renewables are expected to make up 50% of global energy by 2050, and global infrastructure investment needs exceed $15 trillion, driven by energy transition and digitalization.

Distributable earnings (DE), the true measure of shareholder value, have grown 50% in five years, with management targeting 15% annual growth, implying $12.5 billion DE by 2030. Despite a conservatively managed balance sheet and Fitch’s A- rating, BN trades at an 18% discount to fair value, offering an attractive risk/reward profile. With a robust business model, structural advantages, and secular growth drivers, Brookfield offers investors an opportunity for above-average returns over the next five years, underpinned by one of the best capital allocators globally.

Previously we covered a bullish thesis on Brookfield Corporation (BN) by 310 Value in April 2025, which highlighted its large discount to sum-of-the-parts valuation and resilient distributable earnings stream. The stock has appreciated about 32% since then as the thesis partly played out. The thesis still stands as Brookfield remains undervalued. Oguz Erkan shares a similar view but emphasizes secular AUM growth drivers.

Brookfield Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held BN at the end of the first quarter which was 37 in the previous quarter. While we acknowledge the potential of BN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. 

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