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BlackRock, Inc. (BLK)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$804.60 - $1,866.71$1,178.37
Multi-Stage$634.92 - $692.77$663.32
Blended Fair Value$920.85
Current Price$1,165.87
Upside-21.02%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS8.15%8.77%19.8019.3819.0916.2614.4313.3812.5710.619.869.42
YoY Growth--2.17%1.51%17.39%12.70%7.82%6.50%18.41%7.57%4.67%10.31%
Dividend Yield--2.09%2.34%2.85%2.13%1.91%3.04%2.87%1.96%2.57%2.77%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)6,096.00
(-) Cash Dividends Paid (M)3,288.00
(=) Cash Retained (M)2,808.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,219.20762.00457.20
Cash Retained (M)2,808.002,808.002,808.00
(-) Cash Required (M)-1,219.20-762.00-457.20
(=) Excess Retained (M)1,588.802,046.002,350.80
(/) Shares Outstanding (M)156.63156.63156.63
(=) Excess Retained per Share10.1413.0615.01
LTM Dividend per Share20.9920.9920.99
(+) Excess Retained per Share10.1413.0615.01
(=) Adjusted Dividend31.1434.0636.00
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.02%6.02%7.02%
Fair Value$804.60$1,178.37$1,866.71
Upside / Downside-30.99%1.07%60.11%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)6,096.006,462.746,851.547,263.737,700.728,164.008,408.92
Payout Ratio53.94%61.15%68.36%75.57%82.79%90.00%92.50%
Projected Dividends (M)3,288.003,951.944,683.865,489.556,375.237,347.607,778.25

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.02%6.02%7.02%
Year 1 PV (M)3,588.803,622.973,657.15
Year 2 PV (M)3,862.623,936.534,011.15
Year 3 PV (M)4,111.064,229.624,350.44
Year 4 PV (M)4,335.624,503.144,675.46
Year 5 PV (M)4,537.754,757.954,986.62
PV of Terminal Value (M)79,008.3782,842.4386,823.91
Equity Value (M)99,444.22103,892.65108,504.72
Shares Outstanding (M)156.63156.63156.63
Fair Value$634.92$663.32$692.77
Upside / Downside-45.54%-43.11%-40.58%

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