Is BlackRock Inc (BLK) overvalued?
On Equity Rank's model estimate, BLK trades 63% above its fair value. BlackRock Inc (BLK) last closed at $1,178.87; the multi-method model fair value is $721.25.
| Price | Model fair value | Price vs model |
|---|---|---|
| $1178.87 | $721.25 | 63% above |
What the answer rests on
- 1 of 12 valuation methods put BLK's value above its price and 11 put it below, so the methods mostly agree.
- To justify today's price, BLK's free cash flow would need to grow about 23.6% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew -7.0% a year.
- BLK trades at 27.9 times its last year's earnings, against a median of 13.3 for 97 profitable Asset Management companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 33% above to 87% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind BLK's fair value · What prices assume · Other companies