Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Industrial Conglomerates industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Industrial Conglomerates Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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3 Undervalued Industrial Conglomerates Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Industrial Conglomerates industry for Friday, December 12, 2025. Let’s take a closer look at their individual scores to see how they measure up against each other and the Industrial Conglomerates industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Brookfield Business Partners L.P.’s Value Grade

Value Grade:

Brookfield Business Partners L.P. is a private equity firm specializing in growth capital, divestitures, and acquisitions. The firm typically invests in business services, infrastructure services, construction, energy, and industrials sector. The firm prefers to invest globally. It prefers to take majority controlling stake in companies. The firm seeks returns of at least 15%-20% on its investments. The firm was founded in 2016 and is based in Hamilton, Bermuda. Brookfield Business Partners L.P. operates as a subsidiary of Brookfield Corporation.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Brookfield Business Partners L.P. has a Value Score of 85, which is considered to be undervalued.

When you look at Brookfield Business Partners L.P.’s price-to-sales ratio at 0.28 compared to the industry median at 0.40, this company has a lower price relative to revenue compared to its peers. This could make Brookfield Business Partners L.P.’s stock more attractive for value investors.

Now, let’s assess Brookfield Business Partners L.P.’s EV/EBITDA ratio, also known as enterprise multiple. At 9.9, when compared to the industry median of 15.6, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Brookfield Business Partners L.P.’s shareholder yield is lower than its industry median ratio of 4.75%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Brookfield Business Partners L.P.’s price-to-book ratio is higher than its industry median ratio of 1.70. This could make Brookfield Business Partners L.P. less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Brookfield Business Partners L.P.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Brookfield Business Partners L.P.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 6.65. This could make Brookfield Business Partners L.P. more attractive because the lower P/FCF ratio indicates that Brookfield Business Partners L.P. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Icahn Enterprises L.P.’s Value Grade

Value Grade:

Icahn Enterprises L.P., through its subsidiaries engages in the investment, energy, automotive, food packaging, real estate, home fashion and pharma in the United States and internationally. The Investment segment invests its proprietary capital through various private investment funds; and it provides investment advisory, administrative, and back-office services to the investment funds. The Energy segment engages in refining and marketing of petroleum in the form of gasoline, diesel, jet fuel, and distillates; renewable fuels refine renewable feedstocks, such as soybean oil, corn oil, and other related renewable feedstocks into renewable diesel and markets renewable products; and nitrogen fertilizer produces and markets nitrogen fertilizers in the form of urea ammonium nitrate and ammonia. The Automotive segment engages in repair and maintenance of automotive; sale of installed parts or materials related to automotive services; and sale of automotive aftermarket parts and retailed merchandise. The Food Packaging segment produces and sells cellulosic, fibrous, and plastic casings used to prepare and package processed meat products. The Real Estate segment consists of investment properties, including land, retail, office, and industrial properties; and development and sale of single-family homes; and the operations of a resort and two country clubs. The Home Fashion segment manufactures, sources, markets, distributes, and sells home fashion consumer products. The Pharma segment offers pharmaceutical products and services; and develops approved therapies and product candidates. Icahn Enterprises L.P. was incorporated in 1987 and is headquartered in Sunny Isles Beach, Florida.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Icahn Enterprises L.P. has a Value Score of 61, which is considered to be undervalued.

Icahn Enterprises L.P.’s price-to-book ratio is lower than its peers. This could make Icahn Enterprises L.P. fairly attractive for value investors when compared to the industry median at 1.70.

You can read more about Icahn Enterprises L.P.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Steel Partners Holdings L.P.’s Value Grade

Value Grade:

Steel Partners Holdings L.P., together with its subsidiaries, engages in industrial products, energy, banking, defense, supply chain management, logistics, and youth sports businesses worldwide. It operates through Diversified Industrial, Energy, and Financial Services segments. The company fabricates precious metals and alloys into brazing alloys; manufactures and sells seamless stainless steel tubing coils; mechanical and fluid-carrying welded low carbon tubing for automotive, heavy truck, heating, cooling and oil and gas markets; fasteners, adhesives, and fastening systems for the commercial low slope roofing industry, as well as specialty fasteners for the building products industry; and woven substrates of fiberglass, quartz, carbon, and aramid materials. It also designs, manufactures, and markets power electronics and protection, motion control, power quality electromagnetic equipment, custom ball-screws, gears, and gearboxes used in medical, commercial and military aerospace, computer, datacom, industrial, specialty LED lighting, test and measurement, and telecom applications. In addition, the company provides meat-room blade products, repair services, and distributed products for the meat and deli departments of supermarkets, restaurants, and meat and fish processing plants, and electrical saws and cutting equipment distributors; cutting blades for bakeries; and wood cutting blade products for the pallet manufacturing and recycler, and portable saw mill industries. Further, it offers coated, laminated, and metallized films for engineered applications; and drilling and production services to oil and gas exploration and production companies. The company also originates and funds consumer and small business loans; issues credit cards; takes deposits; participates in syndicated commercial and industrial, and asset based credit facilities and securitizations; and offers finance solutions. The company was founded in 1990 and is based in New York, New York.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Steel Partners Holdings L.P. has a Value Score of 99, which is considered to be undervalued.

Steel Partners Holdings L.P.’s price-earnings ratio is 3.7 compared to the industry median at 12.1. This means that it has a lower price relative to its earnings compared to its peers. This makes Steel Partners Holdings L.P. more attractive for value investors.

Steel Partners Holdings L.P.’s price-to-book ratio is higher than its peers. This could make Steel Partners Holdings L.P. less attractive for value investors when compared to the industry median at 1.70.

You can read more about Steel Partners Holdings L.P.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Industrial Conglomerates Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Industrial Conglomerates stocks as well as other industrys.

Choosing Which of the 3 Best Industrial Conglomerates Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Brookfield Business Partners L.P. stock has a Value Grade of A.
• Icahn Enterprises L.P. stock has a Value Grade of B.
• Steel Partners Holdings L.P. stock has a Value Grade of A.

Now that you have a bit more background about each of the 3 undervalued stocks in the Industrial Conglomerates industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Industrial Conglomerates Stocks

Want to learn more about Industrial Conglomerates stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 3 Undervalued Industrial Conglomerates Stocks for Friday, December 12
• Is Honeywell International Inc. (HON) Overvalued?
• Is Honeywell International Inc. (HON) Overvalued?
• Is Honeywell International Inc. (HON) Overvalued?

AAII Disclaimer

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