Buffett Brain · Research note
Score updated 26 Sept 2026
BAM· Financial Services
Brookfield Asset Management
Brookfield Asset Management's 52.9% ROIC is stellar, but a P/E of 31.2 suggests limited margin of safety.
Buffett fit
Partial fit
Owner
100
Durability
61
Management
63
Price
14
Score updated 26 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Financial Services stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning 100% of Brookfield Asset Management would mean overseeing a business with a 52.9% , which is exceptional and suggests strong competitive advantages.
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Brookfield has demonstrated resilience with a 5-year profitability streak, but its EPS saw a maximum decline of 76.81% in the past five years, which raises some concerns about volatility.
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Brookfield's management has maintained a disciplined approach with a debt/equity ratio of 0.71 and interest coverage of 18.7, indicating prudent financial management.
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The current earnings yield of 3.2% and yield of 2.69% are well below the 8-10% threshold that would indicate a clear .
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
8- 1 of 52.9% is top-quintile in the sector, indicating strong capital efficiency.
- 2 of 85.8% reflects a highly profitable business model.
- 3 of 59.3% is among the best in the financial services sector.
- 4Net margin of 49.6% supports robust profitability.
Concerns
8- 1 ratio of 31.2 suggests a high valuation relative to earnings.
- 2Earnings yield of 3.2% is below the desired 8-10% range for a .
- 3 yield of 2.69% indicates limited returns at current prices.
- 4EV/ of 33.3 is high, suggesting overvaluation.
Price history
$47.37+43.5%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Brookfield Asset Management operates as an alternative asset manager focusing on real estate, renewable power, infrastructure, and private equity. It manages $4.82B in revenue with a net income of $2.49B, indicating strong profitability. The firm invests both its own capital and third-party funds, targeting premier assets across various sectors. Its business model benefits from high of 85.8%, reflecting efficient operations.
How this analysis has moved
The call has held across 5 reviews.
Oct 4, 2026 → Oct 29, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Financial Services
Questions about Brookfield Asset Management
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