Brookfield (TSX:BN) Issues New Preferred Shares, Is The Stock Still Cheap?

Brookfield (TSX:BN) has launched a new fixed-income offering, issuing 6,000,000 non-convertible Class A preferred shares at CA$25 each for total proceeds of CA$150 million.

Brookfield's new preferred share issue lands at a time when the common stock trades at CA$52.65, with the share price down 17.85% year to date and the 1-year total shareholder return declining 15.90%. However, the 3-year total shareholder return of 95.99% points to much stronger earlier momentum that has since faded.

Compare Brookfield's new preferred issue with other income-focused ideas by scanning our curated list of 3 dividend fortresses for potential alternatives in your portfolio.

Brookfield trades well below the average analyst target, yet the preferred share issue and recent share price slide signal caution. Is the discount a genuine opportunity, or is it a warning sign on valuation?

Most Popular Narrative: 35.8% Undervalued

The most followed narrative on Simply Wall St compares Brookfield's recent CA$52.65 close to an implied fair value of CA$82, framing the current share price as a sizable discount that investors are trying to justify against the risks outlined.

BN has fallen ~20% this year and ~26% from its 52-week high while LTM DE-bR per share grew 7% and Q2 grew 15%. The price was US$45.89 at end-2025 and US$36.92 on 2 October 2026.

See why 6 investors see Brookfield as 36% undervalued .

Result: Fair Value of CA$82 (UNDERVALUED)

Still, Brookfield's heavy use of related-party insurance capital and its reliance on real-asset gains in Wealth Solutions could quickly flip this underpriced story on its head.

Find out about the key risks to this Brookfield narrative .

Brookfield's P/E Sends a Very Different Signal

Brookfield might look inexpensive if you focus on the CA$82 fair value narrative, yet the plain vanilla P/E ratio points to a tougher story. The stock trades on a 66.6x P/E compared with about 6.8x for the wider Canadian Capital Markets group and 16.6x for peers.

That gap is wide. It suggests that investors already pay a substantial premium for Brookfield's earnings, even after a share price decline of 17.85% year to date. This leaves less room for error if profit delivery falls short. The key question is whether this is a temporary distortion or a sign that the initial undervaluation narrative relies too heavily on optimistic assumptions.

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Sentiment on Brookfield is split, with clear risks on one side and meaningful upside arguments on the other. Review the numbers yourself and move quickly to frame your own stance by weighing the 1 key reward and 2 important warning signs .