* Note: Prices are in Million (M) USD.
Description:
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $14,878 M
Debt : $50,816 M
EBITDA : $0 M
Net Debt (Debt - Cash): $35,938 M
This criteria used industry in which company operates:
Sector: Financial services
Industry: Asset management
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 23.11
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 18 overlapping fiscal years (max 20).Average Free Cash Flow: $-1,854 M
Average Revenue: $4,280 M
Revenue Converted To Free Cash Flow (%): -43.3%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $21,640 M
Revenue 4 Years Ago (2020-12-31): $4,231 M
Last 5 Years Average Revenue Growth: 82%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $939 M
Share Count 5 Years Ago (2020-12-31): $584 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $6.83
Trailing 12-Month Earnings Per Share (EPS): $5.24
Average Earnings Per Share (EPS): $6.04
Dividend Per Share (DPS): $1
Payout Ratio: 12%
Dividend Yield: 0%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 17 valid ROE years (max 20).Average ROE: -29.1%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $139
52-Week Low: $86
Threshold Price (15% Above 52-Week Low): $99
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $131,683 M
Since Market Cap is between 100B - 500B, 3 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 4% exposure of Total Portfolio.
Value-Trade has assigned 15 points to above KKR & Co LP (KKR) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Growth Based PE
50.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 14 Years Avg P/E (15.73)
× EPS ($6.04) = $94.93.
Last 14 Years Avg PE 15.73, Fair Value PE 12, Industry Based PE 15, Growth Based PE 50, RCFC Based PE 10, ROE Based PE 10, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 18.54. Value-Trades has assined P/E value 18.54. Since an average (Current Year EPS + Next Year EPS) earning per share is $6.035.
The fair value of KKR & Co LP (KKR) stock should be (18.54 x $6.035) = $111.92.
