BlackRock

Methodology

BlackRock's asset management business generates predictable fee revenue from growing assets under management, with ETF flows and institutional mandates driving growth. The company's iShares ETF franchise and Aladdin technology platform provide competitive advantages. This fair value calculation works well for BlackRock given the recurring nature of management fees and consistent organic growth, though market levels significantly impact earnings through performance fees and AUM appreciation.

Methodology

BlackRock's PEG ratio typically ranges from 1.5-2.5, reflecting solid valuations for the world's largest asset manager with steady organic growth from ETF market share gains. The company's scale advantages in passive indexing and technology platform justify premium multiples to traditional active managers. Compare to other large asset managers to assess whether BlackRock's ETF dominance and Aladdin moat warrant its valuation premium.

Methodology

BlackRock's dividend yield (around 2.0-3.0%) combined with regular increases makes PEGY relevant for evaluating total returns from asset management. The company's strong and growing cash generation from fee-based revenue supports both dividends and share buybacks. PEGY better captures BlackRock's total return proposition as a mature asset manager where consistent capital returns complement steady growth from passive investment flows and technology services.