MMarketMath

BX

Fast growerQuality: High (84/100)2 red flags

Blackstone Inc. · Financials · Asset Management & Custody Banks

$143.64

52w 101.73 – 190.09

20y monthly, adjusted

Mkt cap

$107.8B

P/E

35.6

P/FCF

23.7

FCF yield

4.2%

ROE

34.8%

Shldr yield

5.6%

div 5.6% + bb 0.0%

What today's price assumes

At $107.8B, the market is pricing in 10.0% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 6.9% per year — the price asks for acceleration beyond the historical record.

Simple DCF per-share range: $92 · $114 · $142 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Historical multiple lens

At its own median P/OCF of 20.2× across 13 years, BX would trade near $125/share (25th–75th percentile: $90–$168); it trades at 23.1× today.

Assumes the historical multiple regime persists — re-ratings can be permanent.

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

+19.3%

Rev 5y

+18.8%

Rev 10y

+12.0%

EPS 5y

+20.9%

EPS 10y

+21.0%

FCF 5y

+20.0%

FCF 10y

+6.9%

Fundamentals

Fiscal 2008–2025, from SEC filings

Revenue

2008: −$349.4M
2009: $1.8B
2010: $3.1B
2011: $3.3B
2012: $4.0B
2013: $6.6B
2014: $7.5B
2015: $4.6B
2016: $5.1B
2017: $7.1B
2018: $6.8B
2019: $7.3B
2020: $6.1B
2021: $22.6B
2022: $8.5B
2023: $8.0B
2024: $13.2B
2025: $14.5B
$0$10.0B$20.0B
08
11
14
17
20
23

Net income

2008: −$5.6B
2009: −$2.4B
2010: −$370.0M
2011: −$168.3M
2012: $218.6M
2013: $1.2B
2014: $1.6B
2015: $709.8M
2016: $1.0B
2017: $1.5B
2018: $1.5B
2019: $2.0B
2020: $1.0B
2021: $5.9B
2022: $1.7B
2023: $1.4B
2024: $2.8B
2025: $3.0B
−$5.0B$0$5.0B
08
11
14
17
20
23

Free cash flow

2008: $1.8B
2009: $387.9M
2010: −$426.0M
2011: $1.1B
2012: $546.1M
2013: $3.5B
2014: $1.6B
2015: $2.3B
2016: −$110.4M
2017: −$1.7B
2018: $27.4M
2019: $1.9B
2020: $1.8B
2021: $3.9B
2022: $6.1B
2023: $3.8B
2024: $3.4B
2025: $4.5B
$0$2.0B$4.0B$6.0B
08
11
14
17
20
23

Diluted shares (lower is better)

2010: 1.3B
2011: 1.7B
2012: 1.9B
2013: 2.1B
2014: 2.2B
2015: 2.2B
2016: 2.2B
2017: 1.2B
2018: 1.2B
2019: 676.2M
2020: 697.3M
2021: 720.1M
2022: 740.9M
2023: 755.4M
2024: 766.6M
2025: 780.2M
01.0B2.0B
08
11
14
17
20
23

Margins

0%1000%081114172023
Net marginFCF margin

Capital returned (dividends + buybacks)

2017: $2.8B
2018: $3.0B
2019: $2.4B
2020: $2.4B
2021: $4.6B
2022: $6.5B
2023: $4.3B
2024: $4.4B
2025: $6.0B
$0$2.0B$4.0B$6.0B
08
11
14
17
20
23

Cash vs long-term debt

$0$5.0B$10.0B$15.0B081114172023
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

Revenue by quarter

Q2'23: $2.8B
Q3'23: $2.5B
Q4'23: $1.3B
Q1'24: $3.7B
Q2'24: $2.8B
Q3'24: $3.7B
Q4'24: $3.1B
Q1'25: $3.3B
Q2'25: $3.7B
Q3'25: $3.1B
Q4'25: $4.4B
Q1'26: $3.6B
Q2'26: $5.0B
$0$2.0B$4.0B
23
24
24
25
26

Net income by quarter

Q2'23: $601.3M
Q3'23: $552.0M
Q4'23: $151.8M
Q1'24: $847.4M
Q2'24: $444.4M
Q3'24: $780.8M
Q4'24: $703.9M
Q1'25: $614.9M
Q2'25: $764.2M
Q3'25: $624.9M
Q4'25: $1.0B
Q1'26: $649.7M
Q2'26: $1.2B
$0$500.0M$1.0B
23
24
24
25
26
QuarterRevenueYoYNet incomeYoYEPSOCF
Q2'26$5.0B+35.9%$1.2B+60.8%1.54$1.9B
Q1'26$3.6B+10.0%$649.7M+5.7%0.83$991.0M
Q4'25 *$4.4B+41.4%$1.0B+44.2%1.29$1.1B
Q3'25$3.1B−15.7%$624.9M−20.0%0.80$1.6B
Q2'25$3.7B+32.7%$764.2M+72.0%0.98$888.5M
Q1'25$3.3B−10.8%$614.9M−27.4%0.80$1.1B
Q4'24 *$3.1B+139.9%$703.9M+363.7%0.91$161.4M
Q3'24$3.7B+44.1%$780.8M+41.5%1.02$1.2B
Q2'24$2.8B−0.7%$444.4M−26.1%0.58$1.2B
Q1'24$3.7B+166.9%$847.4M+887.5%1.11$939.8M
Q4'23 *$1.3B−24.6%$151.8M−72.8%0.21$895.7M
Q3'23$2.5B+140.2%$552.0M+23941.6%0.73$1.1B
Q2'23$2.8B+347.3%$601.3M0.79$1.7B

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue+19.3%+18.8%+12.0%+10.8%
Operating cash flow−9.7%+19.2%+6.9%+16.4%
Free cash flow−9.3%+20.0%+6.9%+16.6%
EPS (diluted)+17.9%+20.9%+21.0%
Equity+4.2%+5.4%
LT debt+0.2%+17.0%+6.4%
Diluted shares+1.7%+2.3%−9.6%−3.2%
Stock price+14.1%+6.4%+23.4%+22.9%

$100, 3 years ago

$149vs $176 in SPY

14.1% vs 20.7%/yr

$100, 5 years ago

$136vs $181 in SPY

6.4% vs 12.6%/yr

$100, 10 years ago

$817vs $412 in SPY

23.4% vs 15.2%/yr

$100, 15 years ago

$2,203vs $813 in SPY

22.9% vs 15.0%/yr

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

22.0%

OCF ÷ (equity + debt)

OCF / EV yield

4.0%

MC vs 10× OCF

2.31

≤1 = priced under 10× OCF

Debt / FCF

2.8y

SBC / FCF

31.8%

Owner earnings

$3.1B

OCF − capex − SBC

OE yield

2.9%

Share count 5y

−3.2%

per year; negative = buybacks

Growth engine (5y): reinvested 36.5% of operating cash flow at an incremental return of 33.2% — an organically fundable growth rate of about 12.1% per year (growth ≈ reinvestment rate × incremental ROIC).

Checklist

17 of 24 checks pass · 71%. Checks with structurally missing inputs are excluded.

Growth & Consistency

6/7

  • Revenue growth

    18.8% · 5y CAGR ≥ 5%

    pass
  • EPS growth

    20.9% · 5y CAGR ≥ 5%

    pass
  • FCF growth

    20.0% · 5y CAGR ≥ 5%

    pass
  • Revenue rises consistently

    5 of 9 · up in ≥ 7 of last 10 years

    fail
  • FCF consistently positive

    8 of 10 · positive in ≥ 8 of last 10 years

    pass
  • Profitable every year

    10 of 10 · net income > 0 in ≥ 8 of last 10

    pass
  • Cash flow keeps up with sales

    19.2% vs 18.8% · OCF CAGR ≥ 0.9× revenue CAGR

    pass

Profitability

5/5

  • Net margin

    20.9% · ≥ 8%

    pass
  • Operating margin

    · ≥ 10%

    na
  • Gross margin stable or rising

    · no drop > 2 pts over 3y

    na
  • Return on equity

    34.8% · ≥ 12%

    pass
  • Cash ROIC

    22.0% · ≥ 12%

    pass
  • FCF margin

    31.5% · ≥ 5%

    pass
  • Earnings back their cash

    OCF $4.7B vs NI $3.0B · OCF ≥ net income (latest FY)

    pass

Balance Sheet

3/4

  • Debt payable from cash flow

    2.8y · LT debt ≤ 3× FCF

    pass
  • Cash cushion

    21% · cash ≥ 50% of LT debt

    fail
  • Leverage

    1.45 · LT debt ≤ 1.5× equity

    pass
  • Equity positive and compounding

    $8.7B · equity > 0 and grew over ~5y

    pass
  • Interest burden

    · interest ≤ 15% of operating income

    na

Capital Allocation

1/4

  • Share count flat or shrinking

    -3.2% · ≤ +0.5%/yr over ~5y

    pass
  • Stock comp restrained

    32% · SBC ≤ 15% of FCF

    fail
  • Distributions funded by FCF

    132% · dividends + buybacks ≤ 100% of FCF

    fail
  • Repurchases are a habit

    0 of 10 · buybacks in ≥ 5 of last 10 years

    fail

Valuation Discipline

2/4

  • FCF yield

    4.2% · ≥ 3%

    pass
  • Earnings multiple

    35.6 · P/E ≤ 25

    fail
  • Price asks less than history delivered

    10.0% vs 6.9% · implied FCF growth ≤ historical FCF CAGR

    fail
  • Shareholder yield

    5.6% · dividends + buybacks ≥ 2% of market cap

    pass

Red flags

Mechanical checks — a flag is a question to investigate, not a verdict

Heavy stock compensation

Stock-based compensation consumes more than 30% of free cash flow.

Distributions exceed FCF

Dividends plus buybacks exceeded free cash flow in the latest fiscal year.

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
202514,4503,0193.874,6631164,5476,0131,4452,63112,5778,666780
202413,2302,7773.623,482613,4204,4241,1681,97211,4608,212767
20238,0231,3911.844,0572243,8334,2689882,95611,6066,817755
20228,5181,7482.366,3362356,1016,5198464,25212,4917,656741
202122,5775,8578.133,986643,9224,6036372,1207,8569,423720
20206,1021,0451.501,9361121,8242,3864381,9995,7326,652697
20197,3382,0503.031,963601,9032,3974172,17211,5427,010676
20186,8331,5422.264618273,0463672,20810,3956,3791,207
20177,1451,4711.22-1,62624-1,6512,8433391,99215,1671,207
20165,1461,0390.86-8922-1103241,8378,9412,165
20154,6477100.572,397592,3386301,8376,7322,152
20147,4851,5850.741,655301,6257351,4129,4762,152
20136,6131,1710.563,548263,5228558322,073
20124,0192190.12583375469507101,891
20113,253-168-0.101,100361,0631,3967551,669
20103,119-370-0.29-37254-4262,4405891,278
20091,774-2,391412243883,048952
2008-349-5,5941,890501,8403,303504

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.