As of June 20, 2025, Artisan Partners Asset Management Inc's estimated intrinsic value ranges from $31.77 to $78.12 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $32.03 | -24.1% |
| Discounted Cash Flow (5Y) | $37.63 | -10.8% |
| Dividend Discount Model (Multi-Stage) | $31.77 | -24.7% |
| Dividend Discount Model (Stable) | $78.12 | +85.2% |
| Earnings Power Value | $43.65 | +3.5% |
Is Artisan Partners Asset Management Inc (APAM) undervalued or overvalued?
With the current market price at $42.19, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Artisan Partners Asset Management Inc'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 | 0.68 | 0.86 |
| Cost of equity | 7.0% | 9.7% |
| Cost of debt | 4.5% | 4.5% |
| Tax rate | 19.1% | 19.8% |
| Debt/Equity ratio | 0.06 | 0.06 |
| After-tax WACC | 6.8% | 9.3% |
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 | $38 | $2,976M | 71.8% |
| 10-Year Growth | $32 | $2,524M | 51.6% |
| 5-Year EBITDA | $30 | $2,337M | 64.1% |
| 10-Year EBITDA | $30 | $2,355M | 48.1% |
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 | $272M |
| Discount Rate (WACC) | 9.3% - 6.8% |
| Enterprise Value | $2,919M - $4,003M |
| Net Debt | $(60)M |
| Equity Value | $2,979M - $4,063M |
| Outstanding Shares | 81M |
| Fair Value | $37 - $50 |
| Selected Fair Value | $43.65 |
| Metric | Value |
|---|---|
| Market Capitalization | $3403M |
| Enterprise Value | $3344M |
| Trailing P/E | 10.61 |
| Forward P/E | 9.25 |
| Trailing EV/EBITDA | 13.10 |
| Current Dividend Yield | 719.79% |
| Dividend Growth Rate (5Y) | 2.26% |
| Debt-to-Equity Ratio | 0.06 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $9.61 |
| Discounted Cash Flow (5Y) | 25% | $9.41 |
| Dividend Discount Model (Multi-Stage) | 20% | $6.35 |
| Dividend Discount Model (Stable) | 15% | $11.72 |
| Earnings Power Value | 10% | $4.36 |
| Weighted Average | 100% | $41.45 |
Based on our comprehensive valuation analysis, Artisan Partners Asset Management Inc's weighted average intrinsic value is $41.45, which is approximately 1.7% below the current market price of $42.19.
Key investment considerations:
Given these factors, we believe Artisan Partners Asset Management Inc is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.