Brookfield Renewable: Stock Gets Expensive, 7.75% Preferreds Still Make Sense

Brookfield Renewable Partners L.P. has surged, but the current valuation is unjustifiable given fundamentals and sector dynamics. BEP trades at 15x FFO and 15x EV/EBITDA, with a net debt/EBITDA of 6.0x, raising concerns given asset lifespans. The rally appears disconnected from earnings estimate revisions, driven instead by speculative data center demand fears.