BlackRock, Inc. (BLK) Intrinsic Value & DCF Valuation
Asset Management · NYSE
Current Price
$1074.35
Intrinsic Value
$940.33
-14.3% margin of safety
What Is BlackRock, Inc.'s Intrinsic Value?
As of 2026-07-30, the base-case DCF model estimates the intrinsic value of BlackRock, Inc. (BLK) at $940.33 per share, compared with a market price of $1,074.35, a margin of safety of -14.3%. The base case assumes 13.7% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $790.15 to $1,110.18. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is BlackRock, Inc. (BLK) Undervalued?
At $1,074.35, BLK trades about 14.3% above the base-case intrinsic value estimate, a modest premium. By this model the price sits within a normal band, though faster growth than assumed would change the picture.
COMPETITIVE MOAT
↑Scale and Brand Recognition
BlackRock's immense scale provides significant cost advantages and operational efficiencies. Its strong brand fosters trust among institutional and retail investors globally.
↑Technology and Data Infrastructure
The Aladdin platform offers a proprietary, integrated technology solution for risk management and portfolio analytics. This creates high switching costs for clients and a data advantage.
↑Diversified Product Offerings
A broad range of investment products across asset classes and vehicles, including ETFs and active funds, caters to diverse client needs. This broad appeal reduces reliance on any single product.
INVESTMENT RISKS
↓Market Volatility and Performance Dependence
BlackRock's revenue is heavily tied to asset values, making it vulnerable to market downturns. Poor investment performance can lead to client outflows and reduced fee income.
↓Shifting Investor Preferences
A sustained shift towards passive investing or alternative asset classes could impact BlackRock's traditional active management business. Adapting to evolving client demands is crucial.
↓Cybersecurity Threats
As a custodian of vast amounts of sensitive financial data, BlackRock is a prime target for cyberattacks. A breach could lead to significant financial and reputational damage.
Base case
BLK base case valuation
Intrinsic Value
$940.33
Margin of safety
-14.3%
Expected annual return
-2.6%
Base case assumptions: 13.7% annual growth, 10.0% discount rate, 30x exit multiple, 5 year projection. Data as of 2026-07-30.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the BLK valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for BlackRock, Inc. respond.
Open DCF Calculator for BLKCompany Overview
BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities, sovereign wealth funds, corporations, official institutions, and banks. It also provides global risk management and advisory services. The firm manages separate client-focused equity, fixed income, and balanced portfolios. It also launches and manages open-end and closed-end mutual funds, offshore funds, unit trusts, and alternative investment vehicles including structured funds. The firm launches equity, fixed income, balanced, and real estate mutual funds. It also launches equity, fixed income, balanced, currency, commodity, and multi-asset exchange traded funds. The firm also launches and manages hedge funds. It invests in the public equity, fixed income, real estate, currency, commodity, and alternative markets across the globe. The firm primarily invests in growth and value stocks of small-cap, mid-cap, SMID-cap, large-cap, and multi-cap companies. It also invests in dividend-paying equity securities. The firm invests in investment grade municipal securities, government securities including securities issued or guaranteed by a government or a government agency or instrumentality, corporate bonds, and asset-backed and mortgage-backed securities. It employs fundamental and quantitative analysis with a focus on bottom-up and top-down approach to make its investments. The firm employs liquidity, asset allocation, balanced, real estate, and alternative strategies to make its investments. In real estate sector, it seeks to invest in Poland and Germany. The firm benchmarks the performance of its portfolios against various S&P, Russell, Barclays, MSCI, Citigroup, and Merrill Lynch indices. BlackRock, Inc. was founded in 1988 and is based in New York, New York with additional offices in Atlanta, Georgia; Boston, Massachusetts; Chicago, Illinois; Dallas, Texas; Denver, Colorado; Greenwich, Connecticut; Houston, Texas; Miami, Florida; Newport Beach, California; Palo Alto, California; Philadelphia, Pennsylvania; Princeton, New Jersey; San Francisco, California; Santa Monica, California; Seattle, Washington; Washington, DC; West Palm Beach, Florida; Wilmington, Delaware; Mexico; Canada; South Africa; Netherlands; Greece; Serbia; Belgium; Hungary; Denmark; Ireland; Scotland; Germany; Switzerland; England; Luxembourg; Spain; Italy; France; Sweden; Austria; India; China; Australia; Hong Kong; South Korea; Singapore; Taiwan; Japan; Colombia; Argentina; Peru; Chile; Brazil; UAE; Saudi Arabia; Israel.
Financial Metrics — BLK Stock Valuation Data
Revenue/Share (TTM)
$175.90
FCF/Share (TTM)
$22.96
ROIC (TTM)
8.4%
ROE (TTM)
12.1%
P/FCF
46.7x
EV/EBITDA
16.1x
FCF Yield
2.14%
Debt/Equity
0.26x
On a trailing twelve-month basis, BLK generates free cash flow per share of $22.96 alongside a ROIC of 8.4%, both central inputs for a DCF valuation. Its P/FCF ratio of 46.7x and FCF yield of 2.14% then frame how BLK is priced against peers on a cash flow basis.
Frequently Asked Questions
What is the intrinsic value of BLK?
BlackRock, Inc. currently generates $22.96 in free cash flow per share. At the current price of $1074.35, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is BLK undervalued?
BLK trades at a P/FCF ratio of 46.7x with a free cash flow yield of 2.14%. A high P/FCF means investors are paying more per dollar of free cash flow, which usually reflects expectations of future growth. However, whether BLK is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value BLK stock using DCF?
To perform a DCF valuation on BlackRock, Inc.: (1) Start with the trailing free cash flow per share ($22.96) as the base, (2) project future FCF growth over 5-10 years based on Asset Management industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting BLK's risk profile — with a debt-to-equity of 0.26x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to BLK?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For BlackRock, Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Asset Management trends, then discounting those amounts to today's dollars. BLK's ROIC of 8.4% shows moderate capital returns.
How does WACC affect BLK stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For BLK, with a debt-to-equity ratio of 0.26x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 16.1x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See BLK PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Financial Services valuationsDCF and P/E value BLK with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.