Blackstone (BX): Examining Valuation After Recent Share Price Swings

Blackstone (BX) shares have shown some movement recently, drawing attention from investors seeking clarity on what is driving the action. The company’s performance over the past month has included a mix of gains and pullbacks, prompting closer review.

See our latest analysis for Blackstone.

Blackstone's share price has seen some swings lately, reflecting investors' recalibrating expectations following a challenging stretch for alternative asset managers. While the past year included a -20.96% total shareholder return, the longer-term performance still stands out, with a 73% gain over three years and 180% over five years. Momentum for the firm's core businesses may be stabilizing as markets digest recent volatility and look ahead to potential catalysts.

If recent moves in Blackstone have you curious about what else is gaining attention, now’s an ideal time to broaden your perspective and discover fast growing stocks with high insider ownership

With Blackstone shares trading 25% below analyst price targets while maintaining steady long-term returns, the question remains: is the current weakness a buying opportunity, or is the market already factoring in the company’s growth prospects?

Most Popular Narrative: 19% Undervalued

Blackstone’s latest fair value estimate stands nearly $35 higher than the last close price, which reveals a belief in significant upside and strong business momentum behind this valuation.

Blackstone is positioned for strong future growth with high inflows and substantial capital for opportunistic investments in undervalued assets. Strategic alliances and innovations in private credit and wealth management aim to boost revenue through expanded market reach and larger spreads.

Read the complete narrative.

Curious how analysts justify such a bold target? The narrative hinges on ambitious forecasts, including rapid earnings acceleration, expanding margins, and a profit outlook that rivals industry heavyweights. The real surprise is that the assumptions behind these numbers might defy your expectations. Find out which financial factors are powering this valuation.

Result: Fair Value of $179.78 (UNDERVALUED)

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

However, ongoing market volatility and shifting global trade policies could quickly undermine these optimistic forecasts. This could potentially impact Blackstone’s future valuations and growth trajectory.

Find out about the key risks to this Blackstone narrative.

Another View: What Do the Multiples Say?

While the fair value estimate looks attractive, Blackstone’s current price-to-earnings ratio of 41.9x is much higher than both the industry average of 23.5x and the peer average of 35.9x. If the market shifts closer to the fair ratio of 25.3x, that could signal more valuation risk than opportunity. Does this premium reflect justified optimism, or is caution warranted?

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

Build Your Own Blackstone Narrative

If the current analysis doesn't fully align with your view, or if you like diving into the numbers yourself, you can quickly assemble your own perspective in just a couple of minutes with Do it your way.

A great starting point for your Blackstone research is our analysis highlighting 3 key rewards and 3 important warning signs 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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