Blackstone (BX): Valuation Insights Following $1.8 Billion Senior Housing Asset Sale and Strategic Refocus

Blackstone (NYSE:BX) is making headlines with the sale of its U.S. senior housing assets valued at $1.8 billion, taking on losses topping $600 million. This divestment highlights a strategic shift in response to persistent headwinds in the sector.

See our latest analysis for Blackstone.

Blackstone’s headline-making divestment follows a year of notable volatility. After announcing new leadership in Europe and ongoing deal rumors, the firm’s 1-year total shareholder return sits at -15.2%. Despite the recent momentum shift, its five-year total shareholder return of more than 200% shows that long-term holders remain strongly in the green.

If big strategic moves like this have you wondering where momentum is building, now is a perfect time to broaden your lens and discover fast growing stocks with high insider ownership

With Blackstone’s shares trading about 24% below the average analyst price target and the company’s strong long-term growth record, the key question is whether investors are overlooking a buying opportunity or if future gains are already reflected in the price.

Most Popular Narrative: 18.8% Undervalued

Blackstone’s most widely followed narrative suggests its fair value sits well above the recent closing price, reflecting notable upside potential for the stock. This conclusion stems from ambitious assumptions about Blackstone’s future growth and market positioning. Revenue and margin expansion are highlighted as crucial drivers.

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.

Want to know why analysts are penciling in such bold growth for Blackstone? It all comes down to a formula built on surging inflows, ambitious earnings projections, and an expanding margin profile that could redefine its future. Discover the big levers propelling 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, tariffs and ongoing trade disputes could undercut growth. In addition, any economic slowdown might challenge Blackstone’s ambitious earnings projections in the coming years.

Find out about the key risks to this Blackstone narrative.

Another View: Our DCF Model Adds Caution

While the analyst consensus sees upside in Blackstone’s price based on future earnings, our DCF model lands on a much lower fair value. This suggests the stock is actually overvalued today. This kind of gap between approaches raises the question: is the market pricing in too much optimism?

Look into how the SWS DCF model arrives at its fair value.

Build Your Own Blackstone Narrative

If you think the story should be told differently or want to see how your own findings stack up, you can build your own view from the ground up in just a few minutes. 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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