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How Blackstone’s Valuation Compares

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Lower valuation

The Blackstone Group (BX) saw strong numbers in 3Q17, with an economic net income of $834 million, a 21% rise YoY (year-over-year). Blackstone has an NTM (next-12-month) price-to-book ratio of 3.7x.

Competitors’ average NTM price-to-book ratio is 4.4x, a valuation lower than Blackstone’s. Peers KKR (KKR), Apollo Global Management (APO), and The Carlyle Group (CG) have ratios of 1.4x, 6.8x, and 5.1x, respectively.

Blackstone’s distributable earnings rose 5% YoY to $626 million in 3Q17 due to strong realizations. The company also saw strong deployments of $10.9 billion and realizations of $8.8 billion. It had strong inflows of $19.7 billion in 3Q17 and $62.4 billion over the last 12 months.

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Price-to-cash-flow ratio

Blackstone has an NTM price-to-cash-flow ratio of 10.4x. To compare, alternative asset manager (XLF) peers’ ratios are as follows:

  • KKR (KKR): 2.5x
  • The Carlyle Group (CG): 8.6x
  • Apollo Global Management (APO): 9.7x
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