Blackstone CEO says BX is undervalued
Blackstone's CEO said his stock is undervalued at 1st Qtr 2017 earnings call:
"The average company in the S&P has a dividend yield of 2% and trades at around 20x last year's earnings. Blackstone stock raised to 12x, not 20x, last year's earnings with an 8% yield, not a 2% yield over the last 3 years, as I mentioned. That's despite having leading positions in all of our various businesses. Faster revenue and earnings growth and much higher payout. Go figure. I don't think they teach that in Graham and Dodd.
As most of you know, I've been racking my brain to make sense of this disconnect. If our shares were valued the same as the average S&P company based on dividend yield, the share price would be over $100 a share instead of the $30, where it now is. If we were valued using the average P multiple, the price would be over $50. That's just math. In any case, this disconnect remains a mystery to me. I leave it to you to figure it out."
* Currently Blackstone (BX) share price is only $30+.
Link: https://seekingalpha.com/article/4063946?source=ansh $BX
Chart from Bloomberg
"The average company in the S&P has a dividend yield of 2% and trades at around 20x last year's earnings. Blackstone stock raised to 12x, not 20x, last year's earnings with an 8% yield, not a 2% yield over the last 3 years, as I mentioned. That's despite having leading positions in all of our various businesses. Faster revenue and earnings growth and much higher payout. Go figure. I don't think they teach that in Graham and Dodd.
As most of you know, I've been racking my brain to make sense of this disconnect. If our shares were valued the same as the average S&P company based on dividend yield, the share price would be over $100 a share instead of the $30, where it now is. If we were valued using the average P multiple, the price would be over $50. That's just math. In any case, this disconnect remains a mystery to me. I leave it to you to figure it out."
* Currently Blackstone (BX) share price is only $30+.
Link: https://seekingalpha.com/article/4063946?source=ansh $BX
Chart from Bloomberg
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