As of August 29, 2025, Black Knight Inc's estimated intrinsic value ranges from $12.92 to $90.15 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $16.82 | -77.8% |
| Discounted Cash Flow (5Y) | $15.60 | -79.4% |
| Dividend Discount Model (Multi-Stage) | $12.92 | -82.9% |
| Dividend Discount Model (Stable) | $32.10 | -57.6% |
| Earnings Power Value | $90.15 | +19.0% |
Is Black Knight Inc (BKI) undervalued or overvalued?
With the current market price at $75.76, the stock appears to be significantly overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Black Knight 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 | 0.87 | 0.96 |
| Cost of equity | 7.9% | 10.3% |
| Cost of debt | 4.0% | 7.5% |
| Tax rate | 17.7% | 18.4% |
| Debt/Equity ratio | 0.22 | 0.22 |
| After-tax WACC | 7.0% | 9.5% |
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 | $16 | $4,876M | 82.3% |
| 10-Year Growth | $17 | $5,067M | 66.9% |
| 5-Year EBITDA | $31 | $7,263M | 88.2% |
| 10-Year EBITDA | $30 | $7,109M | 76.4% |
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 | $1,338M |
| Discount Rate (WACC) | 9.5% - 7.0% |
| Enterprise Value | $14,078M - $19,046M |
| Net Debt | $2,430M |
| Equity Value | $11,648M - $16,616M |
| Outstanding Shares | 157M |
| Fair Value | $74 - $106 |
| Selected Fair Value | $90.15 |
| Metric | Value |
|---|---|
| Market Capitalization | $11876M |
| Enterprise Value | $14306M |
| Trailing P/E | 48.53 |
| Forward P/E | 91.35 |
| Trailing EV/EBITDA | 21.00 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.22 |
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% | $5.05 |
| Discounted Cash Flow (5Y) | 25% | $3.90 |
| Dividend Discount Model (Multi-Stage) | 20% | $2.58 |
| Dividend Discount Model (Stable) | 15% | $4.81 |
| Earnings Power Value | 10% | $9.02 |
| Weighted Average | 100% | $25.36 |
Based on our comprehensive valuation analysis, Black Knight Inc's intrinsic value is $25.36, which is approximately 66.5% below the current market price of $75.76.
Key investment considerations:
Given these factors, we believe Black Knight Inc is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.