Assessing Blackstone (BX) Valuation As Major AI Credit Deals And Liquidity Moves Draw Investor Focus

Blackstone (BX) has been drawing fresh attention after partnering with Apollo on a US$35b private credit package for Anthropic and backing Broadcom’s AI XPV Platform, while also pursuing large secondary sales and collateralized fund obligations.

See our latest analysis for Blackstone.

At a share price of US$120.88, Blackstone has seen a 13.2% 90 day share price return but is down 23.9% year to date. The 5 year total shareholder return of 47.6% points to a much stronger longer term record as investors weigh recent AI financing deals, liquidity moves in secondaries and regulatory noise in New Mexico.

If Blackstone’s AI push has caught your eye, it can be useful to see what else is shaping this theme across the market, starting with 48 AI infrastructure stocks

With Blackstone’s shares down 23.9% year to date but still showing a 47.6% 5 year total return and fresh AI deals grabbing headlines, is this a reset that leaves upside on the table, or is the market already pricing in future growth?

Most Popular Narrative: 25.5% Undervalued

Against a last close of $120.88, the most followed narrative puts Blackstone’s fair value at $162.26, reflecting a valuation built on detailed earnings and margin assumptions.

Blackstone is positioned for strong future growth with high inflows and substantial capital for opportunistic investments in undervalued assets. Strategic alliances and innovations in private credit and wealth management aim to boost revenue through expanded market reach and larger spreads.

Read the complete narrative.

Curious what underpins that higher fair value? The narrative leans heavily on rising earnings power, richer margins, and a future profit multiple that assumes continued strength across Blackstone’s platform. Result: Fair Value of $162.26 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, this depends on risks around BCRED redemption pressure and trade-related uncertainty that could affect real estate values and fee-related earnings.

Wall Street’s queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab’s valuation page.

Another Angle On Valuation

The earlier fair value estimate of $162.26 suggests upside, but Blackstone’s current P/E of 30.5x complicates the picture. It sits below the US Capital Markets industry at 39.2x, yet above the stock’s own fair ratio of 24.8x, which points to some valuation risk if sentiment cools.

This gap between today’s 30.5x and a fair ratio of 24.8x raises a simple question for investors: is the premium a reasonable price for Blackstone’s profile, or could a shift in expectations push the multiple closer to that lower level?

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Given the mix of optimism and concern running through Blackstone’s story, it makes sense to look at the numbers yourself and move quickly while sentiment is still forming. To get a balanced view of both sides, take a close look at the 3 key rewards and 3 important warning signs

Looking for more investment ideas?

If you are serious about building a stronger portfolio, do not stop at one stock. Use targeted screeners to uncover opportunities that fit your goals before others move first.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com