A Fresh Look at KKR’s Valuation Following Major Boston Expansion and Long-Term Office Lease

If you follow KKR (NYSE:KKR), the recent announcement of its 15-year lease for more than 130,000 square feet at Two International Place in downtown Boston probably caught your eye. This is not just another office move; it is one of the largest transactions Boston has seen this year and signals real intent from the firm to double down on growth plans in the city. KKR’s expanded footprint will focus on scaling its insurance business and supporting its global operations, showing that the company is positioning itself for the long haul in a key American business hub.

This expansion comes as momentum around KKR has been steadily building. Over the past year, the stock has climbed 11%, with a striking 15% gain in the past three months alone. Recent moves, such as the profitable ISC exit and local Boston hiring, have contributed to a sense that the company is actively shaping its own trajectory, even as revenue faced some softness. In the broader context, KKR’s willingness to invest in physical infrastructure while other firms stay cautious says a lot about management’s long view and positive risk appetite.

So after a year of solid stock performance and bold strategic bets, is KKR now trading at a bargain, or has the market already priced in the next stage of its growth story?

Most Popular Narrative: 10.7% Undervalued

According to the most widely followed analyst narrative, KKR is currently trading at a discount to its estimated fair value. This suggests that the market may be underestimating its long-term earnings potential and growth opportunities.

"Strong and accelerating fundraising momentum across asset classes, especially with institutional investors and the fast-growing private wealth/retail segment, are expanding fee-paying AUM and supporting double-digit management fee growth. Further upside comes from new distribution initiatives, such as the partnership with Capital Group and insurance third-party capital. This is likely to positively impact future revenue and management fees."

Curious about what underpins this optimistic outlook? There is a bold growth story taking shape beneath the surface. Insiders are betting on significant changes in both margins and earnings power that could reshape how investors value the business. Want to know which key assumptions could make or break this price target? The full narrative reveals the hidden drivers behind the numbers and what could ignite KKR's next leap.

Result: Fair Value of $164.47 (UNDERVALUED)

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

However, sharp competition and possible fee pressures in alternative assets could slow KKR’s revenue and margin gains and may reshape the market narrative going forward.

Find out about the key risks to this KKR narrative.

Another View: Market Metrics Paint a Different Picture

While analysts see upside for KKR, looking at the company's price-to-earnings compared to the industry suggests it is actually on the expensive side. Could the market already be ahead of the story?

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

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

Build Your Own KKR Narrative

If you see the story differently or would rather trust your own data-driven analysis, you can put together your own view in just minutes. Do it your way

A great starting point for your KKR research is our analysis highlighting 1 key reward and 2 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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