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Here’s What Led to Apollo Global Management’s Premium Valuation


Jul. 27 2018, Updated 9:01 a.m. ET

Apollo’s valuation compared to peers

Apollo Global Management’s (APO) PE ratio is 13.29x on an NTM (next-12-month) basis. It has a premium valuation since its peers have an average PE ratio of 12.03x. On an NTM basis, Apollo’s competitors have the following PE ratios:

  • Blackstone Group (BX): 11.41x
  • Carlyle Group (CG): 8.92x
  • KKR & Co. (KKR): 15.77x

In the first quarter, Apollo Global Management’s private equity segment was primarily impacted by the performance of its public holdings. In the second quarter, its inflows could be elevated since investors might choose investments in alternative assets. Real estate investments are thus expected to get a boost in the second quarter.

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What’s driving stock prices of alternatives?

Alternative asset managers have been seeing their stock prices rise. Over the past three months, Blackstone Group rose 14.85%, while Apollo Global Management, Carlyle Group, and KKR & Co. rose 25.75%, 18.07%, and 31.64%, respectively, as of July 24. The rise was mainly due to investors’ increased interest in alternative asset classes.

On an LTM (last-12-month) basis, Apollo has a PE ratio of 11.0x, while other asset managers (XLF) have the following PE ratios:

  • Blackstone Group (BX): 11.62x
  • Carlyle Group (CG): 8.32x
  • KKR & Co. (KKR): 14.19x

Next, let’s see how analysts are viewing Apollo Global Management.


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