As of June 6, 2025, Brookfield Infrastructure Corp's estimated intrinsic value ranges from $28.76 to $204.80 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $204.80 | +400.4% |
| Discounted Cash Flow (5Y) | $161.52 | +294.6% |
| Dividend Discount Model (Multi-Stage) | $28.76 | -29.7% |
| Earnings Power Value | $50.89 | +24.3% |
Is Brookfield Infrastructure Corp (BIPC) undervalued or overvalued?
With the current market price at $40.93, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Brookfield Infrastructure Corp's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.66 | 0.74 |
| Cost of equity | 6.9% | 9.0% |
| Cost of debt | 7.5% | 10.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 2.35 | 2.35 |
| After-tax WACC | 5.9% | 8.2% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $162 | $33,211M | 75.1% |
| 10-Year Growth | $205 | $38,926M | 57.5% |
| 5-Year EBITDA | $125 | $28,426M | 70.9% |
| 10-Year EBITDA | $173 | $34,761M | 52.4% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $1,282M |
| Discount Rate (WACC) | 8.2% - 5.9% |
| Enterprise Value | $15,579M - $21,627M |
| Net Debt | $11,884M |
| Equity Value | $3,695M - $9,743M |
| Outstanding Shares | 132M |
| Fair Value | $28 - $74 |
| Selected Fair Value | $50.89 |
| Metric | Value |
|---|---|
| Market Capitalization | $5404M |
| Enterprise Value | $17288M |
| Trailing P/E | 0.00 |
| Forward P/E | 16.45 |
| Trailing EV/EBITDA | 7.50 |
| Current Dividend Yield | 468.75% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 2.35 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $61.44 |
| Discounted Cash Flow (5Y) | 29% | $40.38 |
| Dividend Discount Model (Multi-Stage) | 24% | $5.75 |
| Earnings Power Value | 12% | $5.09 |
| Weighted Average | 100% | $132.54 |
Based on our comprehensive valuation analysis, Brookfield Infrastructure Corp's weighted average intrinsic value is $132.54, which is approximately 223.8% above the current market price of $40.93.
Key investment considerations:
Given these factors, we believe Brookfield Infrastructure Corp is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.