A Look At Brookfield Business Partners (BBU) Valuation After Softer First Quarter 2026 Results

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Brookfield Business Partners (BBU) is in focus after Brookfield Business Corporation reported first quarter 2026 results, showing sales of US$6,436 million and net income of US$40 million, both lower than in the same period a year earlier.

See our latest analysis for Brookfield Business Partners.

The recent 1-day share price decline of 2.09% to US$31.46 and a 30-day share price return down 9.21%, alongside a year to date share price return down 12.20%, contrasts with a 1-year total shareholder return of 30.82% and 3-year total shareholder return of 87.45%. This suggests longer term holders have still seen strong compounding even as short term momentum has cooled following softer first quarter earnings and a pause in buybacks.

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With BBU trading at US$31.46, sitting at a discount to the average analyst price target and with recent earnings softness already on the table, you have to ask: is there genuine upside here or is the market already pricing in future growth?

Preferred Price-to-Sales of 0.2x: Is it justified?

On a P/S of 0.2x at a last close of $31.46, Brookfield Business Partners screens as cheap compared with both its peers and the broader global Industrials sector.

The P/S ratio compares the company’s market value with its revenue, which can be useful when earnings are volatile or loss making. For a private equity focused business like Brookfield Business Partners, where net income can swing with deal timing, this can give you a cleaner way to benchmark what investors are paying for each dollar of sales.

Relative to the global Industrials industry average of 0.8x, the stock trades at a steep discount. It also sits far below the peer average of 1.9x. This is a multiple level the market could move toward if sentiment or fundamentals change. At the same time, our fair P/S estimate of 0.2x suggests the current pricing is close to what the SWS model implies based on historical relationships.

Explore the SWS fair ratio for Brookfield Business Partners

Result: Price-to-Sales of 0.2x (ABOUT RIGHT)

However, the declining annual revenue of 38.79% and a reported net loss of US$26 million highlight business pressures that could keep the valuation subdued.

Find out about the key risks to this Brookfield Business Partners narrative.

Another view: DCF points to a very different story

While the P/S of 0.2x makes BBU look inexpensive compared with peers, the SWS DCF model presents a more detailed view, with an estimated future cash flow value of $109.73 per unit versus the current $31.46 price. That difference suggests a very different balance of risk and potential reward, so which signal do you place more weight on?

Story Continues

Look into how the SWS DCF model arrives at its fair value.BBU Discounted Cash Flow as at May 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Brookfield Business Partners for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Mixed signals on valuation and business momentum can be confusing, so it makes sense to look through the numbers yourself and decide where you stand. If you want a concise summary of both the bullish and cautious talking points in one place, start with 1 key reward and 3 important warning signs

Looking for more investment ideas?

If you stop here, you could miss other stocks that better fit your goals, so use these focused lists to quickly spot ideas worth a closer look.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include BBU.

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