RE:Assessment Great thanks 5i for telling us the obvious and regurgitating some analyst comments. They didn't mention that all debt is non-recourse in each business. Debt is also split between BBU's portion and non-controlling interests. They didn't mention anything about potential exits of clarios and Westinghouse. They talk about earnings, but BBU is about free cash flow and FFO. No one talks about their past performance growth. This is why the stock is cheap.
Its trading at like 6-7x FFO not including gains on capital recycling. Because BBU doesn't payout cash flow in dividends like BPY, BEP, and BIP... BAM.a adjusted their view on cash flow from their ownership in BBU using a 70% payout ratio on FFO. See BAM's recent supplemental document.
BBU's FFO was 5.28 USD or 6.7 CAD over 2020. So if you paid a div using a 70% payout ratio the yield would be 13%. That's an effective 8x on free cash flow.