BlackRock: Passive Products Allow BlackRock to Generate Organic AUM Growth Despite Difficult Markets

We've left our $810 per share fair value estimate for wide-moat BlackRock in place after updating our valuation model to adjust for changes to our forecasts for assets under management, revenue, and profitability following the release of first-quarter results. Our fair value estimate implies a price/earnings multiple of 23.2 times our 2023 earnings estimate and 20.3 times our 2024 earnings estimate. For some perspective, during the past five (10) years, the company's shares have traded at an average of 21.4 (19.9) times trailing earnings. While the company's shares trade at a hefty premium relative to the other traditional asset managers (which we feel is warranted), they are currently trading at a 20% discount to our fair value estimate.