BlackRock (BLK): Valuation Check as New Systematic Alternatives ETF Extends Its Liquid Alts Toolkit

BlackRock (BLK) just added another piece to its ETF toolkit with the iShares Systematic Alternatives Active ETF, extending its lead in liquid alternatives as investors hunt for smoother, less market tied return streams.

See our latest analysis for BlackRock.

All of this product activity, from outcome focused income ETFs to liquid alternatives like IALT, comes as BlackRock’s 1 year total shareholder return of 3.78 percent lags its powerful 3 year total shareholder return of 63.68 percent. This suggests long term momentum remains intact even as the recent 90 day share price return of minus 4.48 percent hints at cooling sentiment around the current $1083.36 level.

If BlackRock’s ETF moves have you thinking more broadly about where capital is flowing, it might be worth exploring fast growing stocks with high insider ownership as a way to spot under the radar compounders.

With growth still in double digits and the share price sitting roughly 23 percent below the average analyst target, is BlackRock quietly undervalued here, or are investors already paying up for its next leg of earnings growth?

Most Popular Narrative: 18.5% Undervalued

With BlackRock last closing at $1083.36 against a narrative fair value near $1328.64, the story leans toward upside rooted in long term earnings power.

The company's global platform and targeted expansion in emerging markets (e.g., India and Middle East) align with the continued growth in global wealth and the investable asset base, supporting AUM growth and future fee accretion as capital markets and retirement systems develop in these regions.

Read the complete narrative.

Curious how steady double digit growth, thicker margins, and a lower future earnings multiple can still point higher from here? The full narrative unpacks the math.

Result: Fair Value of $1328.64 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent fee compression and integration risks from recent private market acquisitions could cap margin expansion and challenge the long term undervaluation case.

Find out about the key risks to this BlackRock narrative.

Another Lens on Valuation

While the narrative fair value pegs BlackRock as 18.5 percent undervalued, its 27.6 times price to earnings looks rich versus the US capital markets average of 25.8 times and a fair ratio of 19.5 times. This implies meaningful de rating risk if sentiment cools.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own BlackRock Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a personalized view in just minutes: Do it your way.

A great starting point for your BlackRock research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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.

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