Brookfield Infrastructure Partners (NYSE:BIP) just reported full year 2025 results that included US$23.1b in sales and US$449m in net income, along with fresh progress in its AI focused data center build out.

The fresh results and AI focused build out come after a solid run in the units, with a 30 day share price return of 7.55% and year to date share price return of 7.96%. The 1 year total shareholder return of 17.91% points to momentum that has been building over a longer stretch.

If Brookfield Infrastructure’s AI push has caught your attention, this could be a good moment to see what else is emerging in the space through our list of 33 AI infrastructure stocks.

After a strong 1 year return of 17.91% and a recent unit price of US$37.03, along with fresh AI infrastructure progress, the key question is simple: is Brookfield Infrastructure still undervalued or is the market already pricing in future growth?

Most Popular Narrative: 11.6% Undervalued

Brookfield Infrastructure Partners' most followed valuation narrative pegs fair value at $41.91 per unit, compared with the current price of $37.03, which raises questions about what is driving that gap.

Active capital recycling, selling partial stakes in mature assets at compelling multiples and redeploying proceeds into higher yielding, growth oriented opportunities, enhances return on invested capital, underpins ongoing distributable earnings expansion, and provides built in upside to net margins.

Want to see what is behind that fair value number? The narrative leans heavily on earnings expansion, margin uplift and a future profit multiple that assumes real staying power. Curious which specific growth and profitability assumptions need to hold up to support that outcome?

Result: Fair Value of $41.91 (UNDERVALUED)

However, you still need to weigh execution risk on large capital projects and the impact of higher borrowing costs, which could pressure cash flows and unit valuation.

Another View: Earnings Multiple Sends A Different Signal

The first narrative leans on a fair value of $41.91 per unit, but the current P/E of 38x tells a more cautious story. It sits higher than both the peer average of 22.6x and a fair ratio of 37.2x, which points to limited room for error if expectations slip. This raises a question: is this a margin of safety, or a tightrope?

Build Your Own Brookfield Infrastructure Partners Narrative

If you interpret the numbers differently, or prefer to stress test the assumptions yourself, you can build a custom Brookfield Infrastructure view in just a few minutes, starting with Do it your way.

A great starting point for your Brookfield Infrastructure Partners research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Brookfield Infrastructure is already on your radar, do not stop there, wider opportunities could be waiting in other corners of the market right now.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.