Blackstone's Diversification and Solid Fundraising Helping Firm Mitigate Impacts of Market Downturn

We've lowered our fair value estimate for narrow-moat-rated Blackstone to $115 per share from $125 after updating our valuation model to include weaker equity and credit market returns in the near term, which will have a negative impact on assets under management. Our new fair value estimate implies a price/earnings multiple of 22.2 times our 2022 estimate, 20.5 times our 2023 estimate, and 16.4 times our 2024 estimate for distributable earnings per share (which remove the effects of unrealized activity). For some perspective, during the past five (10) years, the company's shares have traded at an average of 23.5 (23.5) times trailing distributable earnings.