Brookfield Asset Management's strategic transformation accelerates, unlocking the mystery of undervalued stock valuations

DYORMaster · 2026-01-13T10:16:00+00:00

Brookfield Asset Management's stock is under $55, offering a 3.3% dividend yield despite significant growth in assets and earnings. Key initiatives, including large fund launches and strategic acquisitions, signal a shift towards next-generation infrastructure investment, particularly in AI and nuclear energy. The current valuation may present a compelling opportunity for long-term investors.

DYORMaster

2026-01-13 10:16:00

Abstract generation in progress

Brookfield Asset Management’s movements in the stock market are attracting attention. Currently trading below $55, it offers a dividend yield of 3.3%, while at the same time, the company’s market value continues to expand significantly.

Rapidly Growing Assets Under Management and Revenue Base

The performance outlook for 2025 clearly demonstrates the company’s growth trend. Assets under management have reached $581 billion, an 8% increase year-over-year, and fee-based revenue has seen a substantial 19% growth. Earnings per share have risen to $1.72. Despite this solid performance expansion, the stock price remains below expectations, possibly because the market views this as a transitional period ahead of future transformation.

Launch of Large-Scale Funds and Strategic Acquisitions

The company is swiftly advancing several key initiatives. It has successfully raised $20 billion for its Transformation Fund, and its real estate-related investment funds are also operating at a scale of $17 billion. Furthermore, in strategic acquisitions, it has gained full control of Oaktree and acquired a majority stake in Angel Oak. These moves signify a genuine shift from traditional infrastructure assets to next-generation sectors.

Accelerating Investment in Next-Generation Infrastructure

Of particular note is the proactive expansion into emerging areas. Securing an $80 billion nuclear energy contract with the U.S. government and establishing a $100 billion AI infrastructure fund aimed at over 20% annual revenue growth symbolize Brookfield’s evolution from a mere infrastructure management company to a driver of digital transformation.

In the financial world, a shift in thinking about wealth creation is also required, and as Robert Kiyosaki points out, the disconnect between corporate value and stock valuation can create market distortions. Brookfield’s current valuation level may be worth considering for investors looking at long-term growth opportunities.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.