BlackRock, Inc. (BLK) Stock Valuation

BlackRock is one of the preeminent asset management firms in the world. They invest across nearly every aspect of equities, commodities, and real estate. With nearly $13.5 trillion in assets under management, the company controls the largest pot of assets of any company in the world. This extremely high level of AUM is mainly due to its continued skyrocketing growth, even at its immense size, AUM grew 17% YOY from Q3 2024 to Q3 2025. This level of growth, if it can be sustained, would offer investors a a haven of extreme growth for investors in times of economic expansion.

After building out the model and strictly looking over each assumption, it is safe to say that despite the extreme growth, future free cash flows do not warrant the current share price.

Current Price: $1080

Optimistic Case Valuation: $900

Baseline Case Valuation: $850

Pessimistic Case Valuation: $750

Trading at a P/E of 28x is historically unattractive (20x-25x throughout 2024) and an EV/EBITDA approaching 19x, though it is low compared to BlackRock's peers, other establish asset managers like KKR, Brookfield, and even Blackstone.

While BlackRock may be a well performing stock moving forward, potential market turbulence, high valuation, and the companies disconcerting ethical standards, mean Modena will wait for a better outlook to invest.