Blackstone Expands Dropbox Credit Line: Assessing the Firm’s Valuation After Its Latest Private Lending Move

Blackstone (NYSE:BX) has grabbed attention yet again thanks to its decision to expand the private credit line for Dropbox to a hefty $2.7 billion. This move, coming just nine months after their original financing deal, reinforces Blackstone’s reputation as a leader in large-scale private lending. For investors tracking the stock, the news isn’t just a milestone for the private credit arm. It also signals how Blackstone can leverage these relationships with major tech firms to stay ahead in the competitive financial landscape.

Zooming out, Blackstone’s shares have shown real momentum, rising 20% over the past year and surging 34% in the last three months alone. The latest Dropbox financing adds another layer to the firm’s active year, marked by strong annual growth in both revenue and net income. While the stock has drifted slightly lower in the last day, the longer-term trajectory has been one of steady progress. Investors are keeping an eye on Blackstone’s approach to dealmaking in a shifting market.

So, with Blackstone’s aggressive moves in private credit and its solid year in the market, is the stock offering value at today’s price or is the market already giving credit for future growth?

Most Popular Narrative: Fairly Valued

The most popular analyst consensus views Blackstone as fairly valued, with the current market price almost completely in line with the projected fair value, according to the underlying future earnings outlook and risk assessment.

Blackstone has raised $62 billion of inflows in Q1 2025, marking the highest level in three years. This boosts assets under management (AUM) and gives the company a strong foundation for future revenue growth. The firm is well-positioned to benefit from market dislocation with $177 billion of dry powder available for opportunistic investments, potentially increasing future earnings as capital is deployed in undervalued assets.

Curious about the formulas behind Blackstone’s “just right” valuation? The analyst consensus hinges on ambitious projections that look beyond today’s price tag. Find out the compelling assumptions, growth strategies, and financial leaps that drive this fair value call. There is a bold roadmap beneath the surface you’ll want to see.

Result: Fair Value of $181.68 (ABOUT RIGHT)

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

However, ongoing trade negotiations and potential market volatility remain key risks that could disrupt Blackstone's growth trajectory and earnings outlook.

Find out about the key risks to this Blackstone narrative.

Another View: Market Comparisons Offer a Different Take

While the analyst consensus suggests Blackstone is fairly valued, comparing the market price to industry valuation ratios tells another story. By this measure, the stock appears expensive compared to the broader sector. Could the market be pricing in more optimism than fundamentals justify?

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

Stay updated when valuation signals shift by adding Blackstone to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Blackstone Narrative

If you see the story differently or want to draw your own conclusions from the data, you can craft your own in just minutes. Do it your way.

A great starting point for your Blackstone research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

Looking for more investment ideas?

Unlock new opportunities by searching beyond Blackstone. The right stock could be just one calculated move away. Do not let standout picks pass you by.

• Tap into tomorrow’s technology by tracking breakthroughs in artificial intelligence with AI penny stocks, designed for the innovation-focused investor.
• Uncover potential gems trading below their worth and seize bargains using our dynamic tool for undervalued stocks based on cash flows.
• Get ahead of the next income wave by spotting companies with robust payout histories through our easy-access gateway to dividend stocks with yields > 3%.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com