MeritValue

Brookfield Business Corp

BBUCdata completeness 88%11 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

Brookfield Business Corp earns about 3% on invested capital, but has diluted owners by 14% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $105.73 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$46.6B1$57.4B2$55.1B3$40.6B3$27.5B3
Net income$2.15B4$240M5$3.78B6$895M6$387M6
Operating cash flow$1.69B7$1.01B8$2.13B9$3.28B9$3.23B9
Capital expenditure—————
Free cash flow (derived)—————
Total debt$29.1B10$46.7B11$42.2B12$38.9B13$43.7B13
Cash & equivalents$2.59B14$2.87B15$3.25B15$3.24B15$3.55B15
Diluted shares77.1M74.6M74.3M74.3M87.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$1,745.43
your share of equity
Profit it earned you last year
$44.12
Free cash flow it threw off
—
Debt you’d be carrying
$4,987.31

10 shares is a claim on $1,745.43 of net worth that earned you $44.12 last year, against $4,987.31 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
3% avg · 5y
FY21 5%FY22 -0%FY23 6%FY24 1%FY25 1%

It earned an average 3% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+14% shares · 5y

Share count is up 14% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 50% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 1 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 1 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$105.73
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$895M
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2021-12-31 · accession 0001628280-24-008228 (Revenue)
  2. 20-F · period ending 2022-12-31 · accession 0001628280-25-017216 (Revenue)
  3. 20-F · period ending 2023-12-31 · accession 0001628280-26-022148 (Revenue)
  4. 20-F · period ending 2021-12-31 · accession 0001628280-24-008228 (ProfitLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001628280-25-017216 (ProfitLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001628280-26-022148 (ProfitLoss)
  7. 20-F · period ending 2021-12-31 · accession 0001628280-24-008228 (CashFlowsFromUsedInOperatingActivities)
  8. 20-F · period ending 2022-12-31 · accession 0001628280-25-017216 (CashFlowsFromUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001628280-26-022148 (CashFlowsFromUsedInOperatingActivities)
  10. 20-F · period ending 2021-12-31 · accession 0001628280-23-006618 (Borrowings)
  11. 20-F · period ending 2022-12-31 · accession 0001628280-24-008228 (Borrowings)
  12. 20-F · period ending 2023-12-31 · accession 0001628280-25-017216 (Borrowings)
  13. 20-F · period ending 2024-12-31 · accession 0001628280-26-022148 (Borrowings)
  14. 20-F · period ending 2021-12-31 · accession 0001628280-25-017216 (CashAndCashEquivalents)
  15. 20-F · period ending 2022-12-31 · accession 0001628280-26-022148 (CashAndCashEquivalents)