As of 2025-05-18, the Fair Value of Brookfield Asset Management Inc (BAM.A.TO) is 8.78 CAD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 48.01 CAD, the upside of Brookfield Asset Management Inc is -81.7%.

Is BAM.A.TO a good investment?

With the market price of 48.01 CAD and our fair value calculation, Brookfield Asset Management Inc (BAM.A.TO) is not a good investment. Investing in BAM.A.TO stocks now will result in a potential loss of 81.7%.

48.01 CAD

Stock Price

8.78 CAD

Fair Price

FAIR VALUE CALCULATION

BAM.A.TO Fair Value

Peter Lynch's formula is:

BAM.A.TO Fair Value

= Earnings Growth Rate x TTM EPS

BAM.A.TO Fair Value

= 5 x 1.26 USD

BAM.A.TO Fair Value

= 5 x 1.76 CAD

BAM.A.TO Fair Value

= 8.78

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 0 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

	Historical Earnings

	0Y Avg
Net income
YoY growth	-100%

BAM.A.TO Fair Value - Peers Benchmarking

	Market Cap (mil)	EPS	Fair Value	Upside
a
Brookfield Asset Management Inc	92,617	1.3	8.78	-81.7%
Blackstone Group Inc	179,196	2.1	52.07	-64.5%
BlackRock Inc	153,425	40.7	322.16	-67.4%
KKR & Co Inc	111,831	2.5	62.15	-50.6%
Bank of New York Mellon Corp	64,439	6.6	33.02	-63.3%
Ameriprise Financial Inc	50,215	31.2	541.34	3.3%
T. Rowe Price Group Inc	21,793	9.1	45.37	-53.7%
Northern Trust Corp	20,991	11.4	139.84	29.6%
Franklin Resources Inc	11,758	0.8	3.85	-82.8%
Invesco Ltd	6,910	1.8	44.93	191%

BAM.A.TO Fair Value - Key Data

Market Cap (mil)	92,617
P/E	43x
Forward P/E	67.5x

EPS	1.26
Avg earnings growth rate	-100%
TTM earnings	1,543

BAM.A.TO Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.