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For investors wondering whether BlackRock stock is starting to look interesting again, the key question is whether the current price reflects a fair deal or a potential mispricing on the upside or downside.
After reaching a last close of US$964.71, the share price has declined 8.1% over the past week, 9.9% over the past month, 11.1% year to date, while still sitting on a 49.5% return over three years and 21.8% over five years.
Recent coverage has focused on BlackRock’s role as a major asset manager and its exposure to broad market trends, which often influences how investors think about risk and fee-based revenue. Over a longer horizon, headlines around industry fund flows and assets under management have played a part in shaping sentiment toward the stock.
According to Simply Wall St’s framework, BlackRock currently has a valuation score of 3 out of 6. The next sections will outline how different valuation methods assess the stock, then connect those numbers to a fuller view of the investment case.
Find out why BlackRock’s -6.0% return over the last year is lagging behind its peers.
Approach 1: BlackRock Excess Returns Analysis
The Excess Returns model asks whether BlackRock is expected to earn more on its equity base than the return required by shareholders, then capitalizes that difference into an intrinsic value per share.
For BlackRock, the model uses a Book Value of $364.87 per share and a Stable Book Value estimate of $372.36 per share, based on weighted future book value estimates from 4 analysts. On this equity base, the stock is modeled to earn Stable EPS of $60.30 per share, sourced from weighted future return on equity estimates from 7 analysts, implying an average Return on Equity of 16.19%.
The required Cost of Equity is set at $29.39 per share, so the implied Excess Return is $30.91 per share. Aggregating these excess returns produces an estimated intrinsic value of about $1,082.56 per share. Compared with the recent share price of $964.71, this Excess Returns valuation suggests BlackRock is about 10.9% undervalued.
Result: UNDERVALUED
Our Excess Returns analysis suggests BlackRock is undervalued by 10.9%. Track this in your watchlist or portfolio, or discover 44 more high quality undervalued stocks.
Approach 2: BlackRock Price vs Earnings
