Blackstone (BX) Could Be 16% Undervalued On PGP Glass Sale Talks
PGP Glass sale talks put fresh attention on Blackstone
Blackstone (BX) is back in focus after reports that Brookfield Corporation is in advanced talks to buy PGP Glass for US$1.3b to US$1.5b. The deal could potentially give Blackstone an exit from its six year investment.
Recent trading tells a mixed story for Blackstone. The share price has slipped 13.5% over the past month and is down 21.9% year to date, yet the 3 year total shareholder return of 28.8% and 5 year total shareholder return of 25.0% point to a longer record of value creation even as short term momentum cools around news such as the prospective PGP Glass exit.
See how other alternative asset managers are positioned by running the curated 29 high quality undervalued stocks alongside Blackstone after this PGP Glass exit story.
Short term pressure around Blackstone and the PGP Glass exit rumor has reset expectations. Is this a moment to step in now, or does the math still argue for waiting on a cleaner entry point?
Most Popular Narrative: 14% Undervalued
Blackstone’s most followed narrative pegs fair value at about $143.45, which sits above the recent $124.01 close and presents the current pullback as a valuation gap rather than a completed story.
The firm is positioned to benefit from market dislocation, with $177 billion of dry powder available for opportunistic investments. This may increase future earnings as capital is deployed in undervalued assets. Blackstone's strategic alliance with Wellington and Vanguard aims to develop integrated public-private investment solutions, which may expand revenue channels by tapping into the private wealth market.
See why 98 investors see Blackstone as 14% undervalued.
Result: Fair Value of $143.45 (UNDERVALUED)
Still, tariff related cost pressures and prolonged trade disputes could drag on real estate values and delay deal activity, which would test the upbeat Blackstone narrative.
Find out about the key risks to this Blackstone narrative.
Another View: Blackstone Through The Cash Flow Lens
The earlier discussion framed Blackstone around a fair value of $143.45, which implies the stock looks undervalued. A different lens, the SWS DCF model, points the other way. On that cash flow view, Blackstone at $124.01 trades above an estimated value of $112.73, which tilts the story toward overvaluation instead. Which lens do you trust more when real money is on the line?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Blackstone for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 29 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
Mixed signals around Blackstone can easily pull you in two directions, so consider moving quickly, testing the numbers yourself, and weighing both the potential upside and the embedded concerns by checking the 2 key rewards and 3 important warning signs.
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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.
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