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BLK (BlackRock) Intrinsic Value: Projected FCF : $505.32 (As of Oct. 31, 2024)


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What is BlackRock Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-10-31), BlackRock's Intrinsic Value: Projected FCF is $505.32. The stock price of BlackRock is $981.03. Therefore, BlackRock's Price-to-Intrinsic-Value-Projected-FCF of today is 1.9.

The historical rank and industry rank for BlackRock's Intrinsic Value: Projected FCF or its related term are showing as below:

BLK' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.83   Med: 1.24   Max: 1.95
Current: 1.94

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of BlackRock was 1.95. The lowest was 0.83. And the median was 1.24.

BLK's Price-to-Projected-FCF is ranked worse than
87.51% of 961 companies
in the Asset Management industry
Industry Median: 0.9 vs BLK: 1.94

BlackRock Intrinsic Value: Projected FCF Historical Data

The historical data trend for BlackRock's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

BlackRock Intrinsic Value: Projected FCF Chart

BlackRock Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 389.80 438.19 511.63 502.40 501.53

BlackRock Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 491.81 489.37 501.53 482.46 505.32

Competitive Comparison of BlackRock's Intrinsic Value: Projected FCF

For the Asset Management subindustry, BlackRock's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


BlackRock's Price-to-Projected-FCF Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, BlackRock's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where BlackRock's Price-to-Projected-FCF falls into.



BlackRock Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get BlackRock's Free Cash Flow(6 year avg) = $3,673.12.

BlackRock's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Jun24)*0.8)/Shares Outstanding (Diluted Average)
=(11.854592825659*3673.12+40102*0.8)/149.658
=505.32

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


BlackRock  (NYSE:BLK) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

BlackRock's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=981.03/505.31840596417
=1.94

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


BlackRock Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of BlackRock's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


BlackRock Business Description

Address
50 Hudson Yards, New York, NY, USA, 10001
BlackRock is the largest asset manager in the world, with $10.646 trillion in assets under management at the end of June 2024. Its product mix is fairly diverse, with 55% of managed assets in equity strategies, 26% in fixed income, 9% in multiasset classes, 7% in money market funds, and 3% in alternatives. Passive strategies account for around two thirds of long-term AUM, with the company's ETF platform maintaining a leading market share domestically and on a global basis. Product distribution is weighted more toward institutional clients, which by our calculations account for around 80% of AUM. BlackRock is geographically diverse, with clients in more than 100 countries and more than one third of managed assets coming from investors domiciled outside the US and Canada.
Executives
Mark Wiedman officer: Senior Managing Director 50 HUDSON YARDS, NEW YORK NY 10001
J. Richard Kushel officer: Senior Managing Director BLACKROCK, INC., 50 HUDSON YARDS, NEW YORK NY 10001
Laurence Fink director, officer: Chairman and CEO BLACKROCK, INC., 50 HUDSON YARDS, NEW YORK NY 10001
Pamela Daley director C/O PATHEON N.V., HERENGRACHT 483, AMSTERDAM P7 1017 BT
Rachel Lord officer: Senior Managing Director 55 EAST 52ND STREET, NEW YORK NY 10055
Stephen Cohen officer: Senior Managing Director 55 EAST 52ND STREET, NEW YORK NY 10055
Christopher J. Meade officer: General Counsel and CLO BLACKROCK, INC., 55 EAST 52ND STREET, NEW YORK NY 10055
Marc D. Comerchero officer: Principal Accounting Officer BLACKROCK, INC., 50 HUDSON YARDS, NEW YORK NY 10001
Martin Small officer: CFO & Senior Managing Director 50 HUDSON YARDS, NEW YORK NY 10001
Amin H. Nasser director 50 HUDSON YARDS, NEW YORK NY 10001
Caroline Heller officer: Senior Managing Director 50 HUDSON YARDS, NEW YORK NY 10001
Manish Mehta officer: Senior Managing Director 55 EAST 52ND STREET, NEW YORK NY 10055
Mark Mccombe officer: Senior Managing Director BLACKROCK, INC., 55 EAST 52ND STREET, NEW YORK NY 10055
Robert Kapito director, officer: President 100 BELLEVUE PARKWAY, WILMINGTON DE 19809
William E Ford director 55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055