As of June 7, 2025, Blackstone Group Inc's estimated intrinsic value ranges from $36.03 to $94.39 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $91.15 | -35.1% |
| Discounted Cash Flow (5Y) | $94.39 | -32.8% |
| Dividend Discount Model (Multi-Stage) | $89.67 | -36.2% |
| Dividend Discount Model (Stable) | $63.54 | -54.8% |
| Earnings Power Value | $36.03 | -74.3% |
Is Blackstone Group Inc (BX) undervalued or overvalued?
With the current market price at $140.45, 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 Blackstone Group 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 | 0.64 | 0.87 |
| Cost of equity | 6.8% | 9.7% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 13.6% | 14.5% |
| Debt/Equity ratio | 0.07 | 0.07 |
| After-tax WACC | 6.6% | 9.4% |
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 | $94 | $123,567M | 82.4% |
| 10-Year Growth | $91 | $119,639M | 66.8% |
| 5-Year EBITDA | $62 | $84,756M | 74.3% |
| 10-Year EBITDA | $66 | $89,147M | 55.4% |
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 | $4,078M |
| Discount Rate (WACC) | 9.4% - 6.6% |
| Enterprise Value | $43,606M - $61,920M |
| Net Debt | $9,055M |
| Equity Value | $34,552M - $52,865M |
| Outstanding Shares | 1,213M |
| Fair Value | $28 - $44 |
| Selected Fair Value | $36.03 |
| Metric | Value |
|---|---|
| Market Capitalization | $170398M |
| Enterprise Value | $179453M |
| Trailing P/E | 66.98 |
| Forward P/E | 34.25 |
| Trailing EV/EBITDA | 13.65 |
| Current Dividend Yield | 299.66% |
| Dividend Growth Rate (5Y) | 16.70% |
| Debt-to-Equity Ratio | 0.07 |
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% | $27.34 |
| Discounted Cash Flow (5Y) | 25% | $23.60 |
| Dividend Discount Model (Multi-Stage) | 20% | $17.93 |
| Dividend Discount Model (Stable) | 15% | $9.53 |
| Earnings Power Value | 10% | $3.60 |
| Weighted Average | 100% | $82.01 |
Based on our comprehensive valuation analysis, Blackstone Group Inc's weighted average intrinsic value is $82.01, which is approximately 41.6% below the current market price of $140.45.
Key investment considerations:
Given these factors, we believe Blackstone Group Inc is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.