Blackstone, headquartered in New York City, provides investment and fund management services across four segments: Real Estate, Private Equity, Credit & Insurance, and Hedge Fund Solutions. The company employs 4,735 people and went public on June 22, 2007.
Based on our analysis, Blackstone has received an overvalued rating of 1 out of 5 stars from Cashu. The company's key financial ratios indicate that it is trading at significantly elevated valuations compared to its sector peers.
The Price-to-Earnings (PE) ratio for Blackstone stands at 64.92, while the sector average is only 11.69. A high PE ratio suggests that investors are paying a premium for each dollar of earnings, indicating potential overvaluation. Similarly, the Price-to-Book (PB) ratio is at 25.46 compared to the sector's 1.12, highlighting that the stock is priced well above its book value, which could deter value-focused investors.
Despite reporting a robust net profit margin of 20.99, which exceeds the sector average of 18.54, this efficiency in generating profit does not sufficiently justify the high valuation ratios. Furthermore, while Blackstone boasts a strong Return on Equity (ROE) of 33.81 against the sector's 8.14, this alone does not compensate for the inflated price multiples relative to industry norms.
The Return on Assets (ROA) for Blackstone is 6.39, much higher than the sector's 0.88. However, these impressive performance metrics are overshadowed by the substantial premium that the stock commands, raising concerns about sustainability and future growth potential.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Financials
Overvalued
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