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BlackRock, Inc. stands as a globally recognized investment management powerhouse, publicly owned and operating across a diverse range of financial markets. Its services are primarily targeted towards a broad spectrum of investors: from institutional, intermediary, and individual investors to a wider audience including pension plans, insurance companies, sovereign wealth funds, and public institutions. Its portfolio includes corporate bodies, banks, charities, foundations, and governments, showcasing a worldwide investment reach.
BlackRock, Inc. stands as a globally recognized investment management powerhouse, publicly owned and operating across a diverse range of financial markets. Its services are primarily targeted towards a broad spectrum of investors: from institutional, intermediary, and individual investors to a wider audience including pension plans, insurance companies, sovereign wealth funds, and public institutions. Its portfolio includes corporate bodies, banks, charities, foundations, and governments, showcasing a worldwide investment reach.
{{Infobox|infobox=BlackRock Inc.}}


Beyond mere investment management, BlackRock also offers robust risk management and advisory services, adding another dimension to its comprehensive financial portfolio. It manages bespoke client portfolios focused on equity, fixed income, and balanced assets.
Beyond mere investment management, BlackRock also offers robust risk management and advisory services, adding another dimension to its comprehensive financial portfolio. It manages bespoke client portfolios focused on equity, fixed income, and balanced assets.
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Multi-asset represented 9% of long-term AUM and 10% of long-term base fees and securities lending revenue for 2022.
Multi-asset represented 9% of long-term AUM and 10% of long-term base fees and securities lending revenue for 2022.


Multi-asset net inflows reflected ongoing institutional demand for our solutions-based advice with $33 billion of net inflows coming from institutional clients. Defined contribution plans of clients remained a significant driver of flows and contributed $19 billion to institutional multiasset net inflows in 2022, primarily into target date and target risk product offerings. The Company’s multi-asset strategies include the following:
Multi-asset net inflows reflected ongoing institutional demand for our solutions-based advice with $33 billion of net inflows coming from institutional clients. Defined contribution plans of clients remained a significant driver of flows and contributed $19 billion to institutional multiasset net inflows in 2022, primarily into target date and target risk product offerings. The Company’s multi-asset strategies include the following:  


• ''Target date and target risk products'' generated net inflows of $24 billion. Institutional investors represented 89% of target date and target risk AUM, with defined contribution plans representing 84% of AUM. Flows were driven by defined contribution investments in our LifePath offerings. LifePath products utilize a proprietary active asset allocation overlay model that seeks to balance risk and return over an investment horizon based on the investor’s expected retirement timing. Underlying investments are primarily index products.
• ''Target date and target risk products'' generated net inflows of $24 billion. Institutional investors represented 89% of target date and target risk AUM, with defined contribution plans representing 84% of AUM. Flows were driven by defined contribution investments in our LifePath offerings. LifePath products utilize a proprietary active asset allocation overlay model that seeks to balance risk and return over an investment horizon based on the investor’s expected retirement timing. Underlying investments are primarily index products.  


• ''Asset allocation and balanced products'' generated $6 billion of net inflows. These strategies combine equity, fixed income and alternative components for investors seeking a tailored solution relative to a specific benchmark and within a risk budget. In certain cases, these strategies seek to minimize downside risk through diversification, derivatives strategies and tactical asset allocation decisions. Flagship products include our Global Allocation and Multi-Asset Income fund families.
• ''Asset allocation and balanced products'' generated $6 billion of net inflows. These strategies combine equity, fixed income and alternative components for investors seeking a tailored solution relative to a specific benchmark and within a risk budget. In certain cases, these strategies seek to minimize downside risk through diversification, derivatives strategies and tactical asset allocation decisions. Flagship products include our Global Allocation and Multi-Asset Income fund families.  


• ''Fiduciary management services'' are complex mandates in which pension plan sponsors or endowments and foundations retain BlackRock to assume responsibility for some or all aspects of investment management, often with BlackRock acting as outsourced chief investment officer. These customized services require strong partnership with the clients’ investment staff and trustees in order to tailor investment strategies to meet client-specific risk budgets and return objectives
• ''Fiduciary management services'' are complex mandates in which pension plan sponsors or endowments and foundations retain BlackRock to assume responsibility for some or all aspects of investment management, often with BlackRock acting as outsourced chief investment officer. These customized services require strong partnership with the clients’ investment staff and trustees in order to tailor investment strategies to meet client-specific risk budgets and return objectives
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==== Illiquid Alternatives ====
==== Illiquid Alternatives ====
The Company’s illiquid alternatives strategies include the following:
The Company’s illiquid alternatives strategies include the following:  


• Alternative Solutions represents highly customized portfolios of alternative investments. In 2022, alternative solutions portfolios had $7 billion in AUM, and $895 million of net inflows.
• Alternative Solutions represents highly customized portfolios of alternative investments. In 2022, alternative solutions portfolios had $7 billion in AUM, and $895 million of net inflows.  


• Private Equity and Opportunistic included AUM of $25 billion in opportunistic and credit offerings, $22 billion in private equity solutions, and $7 billion in Long Term Private Capital (“LTPC”). Net inflows of $9 billion into private equity and opportunistic strategies included $6 billion of net inflows into opportunistic and credit offerings, $2 billion of net inflows into private equity solutions and $844 million of net inflows into LTPC.
• Private Equity and Opportunistic included AUM of $25 billion in opportunistic and credit offerings, $22 billion in private equity solutions, and $7 billion in Long Term Private Capital (“LTPC”). Net inflows of $9 billion into private equity and opportunistic strategies included $6 billion of net inflows into opportunistic and credit offerings, $2 billion of net inflows into private equity solutions and $844 million of net inflows into LTPC.  


• Real Assets which includes infrastructure and real estate, totalled $58 billion in AUM, reflecting net inflows of $6 billion, led by infrastructure
• Real Assets which includes infrastructure and real estate, totalled $58 billion in AUM, reflecting net inflows of $6 billion, led by infrastructure


==== Liquid Alternatives ====
==== Liquid Alternatives ====
The Company’s liquid alternatives products’ net outflows of $2 billion reflected net outflows from direct hedge fund strategies. Direct hedge fund strategies includes a variety of single- and multi-strategy offerings. In addition, the Company manages $86 billion in liquid credit strategies which is included in active fixed income.
The Company’s liquid alternatives products’ net outflows of $2 billion reflected net outflows from direct hedge fund strategies. Direct hedge fund strategies includes a variety of single- and multi-strategy offerings. In addition, the Company manages $86 billion in liquid credit strategies which is included in active fixed income.  


==== Currency and Commodities ====
==== Currency and Commodities ====
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==== Cash Management ====
==== Cash Management ====
Cash management AUM totaled $671 billion at December 31, 2022, reflecting $77 billion of net outflows, primarily due to institutional client redemptions from US government money market funds. Cash management products include taxable and tax-exempt money market funds, short-term investment funds and customized separate accounts. Portfolios are denominated in US dollars, Canadian dollars, Australian dollars, Euros, Swiss Francs, New Zealand dollars or British pounds. During 2022 BlackRock voluntarily waived a portion of its management fees on certain money market funds to ensure that they maintain a minimum level of daily net investment income. These waivers resulted in a reduction of management fees of approximately $72 million, which was partially offset by a reduction of BlackRock’s distribution and servicing costs paid to financial intermediaries. These waivers ceased following rate hikes by the Bank of England and the US Federal Reserve in March 2022.
Cash management AUM totaled $671 billion at December 31, 2022, reflecting $77 billion of net outflows, primarily due to institutional client redemptions from US government money market funds. Cash management products include taxable and tax-exempt money market funds, short-term investment funds and customized separate accounts. Portfolios are denominated in US dollars, Canadian dollars, Australian dollars, Euros, Swiss Francs, New Zealand dollars or British pounds. During 2022 BlackRock voluntarily waived a portion of its management fees on certain money market funds to ensure that they maintain a minimum level of daily net investment income. These waivers resulted in a reduction of management fees of approximately $72 million, which was partially offset by a reduction of BlackRock’s distribution and servicing costs paid to financial intermediaries. These waivers ceased following rate hikes by the Bank of England and the US Federal Reserve in March 2022.
== History ==
BlackRock, Inc. has evolved into a powerhouse of the global investment management industry, with a rich history dating back to its founding in 1988. Established as Blackstone Financial Management, LLC, the firm underwent significant changes over the years, leading to its transformation into BlackRock, one of the world's largest and most respected investment management companies.
'''Founding and Early Growth'''
BlackRock was born out of the visionary leadership of Larry Fink and his team, who recognized the potential for a specialized fixed-income asset management business. In 1988, they approached The Blackstone Group, a leading private equity and financial services firm, with a compelling proposal. They managed to secure $5 million in seed capital from Blackstone's partners to launch their venture, initially operating under the name Blackstone Financial Management, LLC.
'''Rise to Prominence'''
Under Larry Fink's guidance, Blackstone Financial Management quickly gained recognition for its expertise in managing fixed-income assets. The firm's commitment to delivering value to clients and its disciplined investment approach attracted a growing client base.
'''Independence and Name Change'''
In 1992, BlackRock's management saw an opportunity to further expand and diversify the business. They negotiated a buyout from The Blackstone Group, gaining independence as a separate entity. This pivotal moment marked the beginning of a new era for the company, and to avoid confusion with its former parent company, the name was changed to "BlackRock, Inc."
'''Expansion and IPO'''
With its newfound independence, BlackRock set its sights on expansion. The firm focused on diversifying its investment offerings beyond fixed-income assets, branching out into equities and other asset classes. This strategic expansion allowed BlackRock to cater to a broader range of clients with varying investment needs.
In 1999, BlackRock took a major step forward by going public and listing its shares on the New York Stock Exchange (NYSE) under the ticker symbol "BLK." The initial public offering (IPO) brought heightened visibility and access to additional capital, enabling the company to fuel its growth trajectory.
'''Acquisitions and Industry Leadership'''
Embracing a strategy of both organic growth and strategic acquisitions, BlackRock continued to solidify its position as a leading investment management firm. Notable among its acquisitions was the 2006 purchase of Merrill Lynch Investment Managers (MLIM) from Merrill Lynch & Co., Inc. This transformative deal significantly expanded BlackRock's assets under management (AUM) and market reach.
In 2009, BlackRock made another monumental move, acquiring Barclays Global Investors (BGI), the asset management division of Barclays PLC. The acquisition, valued at approximately $13.5 billion, made BlackRock one of the world's largest investment management companies, further bolstering its presence in the ETF market.
'''Diversification and Innovation'''
BlackRock's journey has been characterized by a commitment to innovation and a proactive response to changing market dynamics. The company has continuously sought to meet the evolving needs of investors by expanding its product offerings, embracing technology, and leading the way in environmental, social, and governance (ESG) investing.
'''Global Impact and Leadership'''
Today, BlackRock stands as a global leader in investment management, serving a diverse client base that includes governments, corporations, pension funds, foundations, and individual investors across continents. The company's impact on the financial industry is substantial, and its voice carries significant weight in global financial matters.


== Team ==
== Team ==
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==== Robert Goldstein - Chief Operating Officer ====
==== Robert Goldstein - Chief Operating Officer ====
Mr. Goldstein is BlackRock's Chief Operating Officer, a Senior Managing Director, co-chair of the Global Operating Committee and a member of the Global Executive Committee. He has worked at BlackRock for more than 20 years, starting as analyst in BlackRock's Portfolio Analytics Group in 1994, and being instrumental in developing BlackRock's processes and capabilities. Previously he earned a bachelors degree in economics from the Binghamton University in 1994. He has twice been named to Fortune's "40 under 40" list.
Mr. Goldstein is BlackRock's Chief Operating Officer, a Senior Managing Director, co-chair of the Global Operating Committee and a member of the Global Executive Committee. He has worked at BlackRock for more than 20 years, starting as analyst in BlackRock's Portfolio Analytics Group in 1994, and being instrumental in developing BlackRock's processes and capabilities. Previously he earned a bachelors degree in economics from the Binghamton University in 1994. He has twice been named to Fortune's "40 under 40" list.
== Company Valuation ==
{| class="wikitable"
| colspan="2" |'''DCF Assumptions & Output:'''
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|-
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|'''Company Name:'''
|
|BlackRock
|
| colspan="3" |'''Terminal Value -  Multiples Method:'''
|
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| colspan="4" |'''Terminal Value -  Perpetuity Growth Method:'''
|-
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|'''Ticker:'''
|
|BLK
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|-
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|'''Current Share Price:'''
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|$              745.74
|
| colspan="3" |'''Median TEV / EBITDA of  Comps:'''
|14.0 x
|
| colspan="3" |'''Expected Long-Term GDP  Growth:'''
|1.80%
|-
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|
|
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| colspan="3" |'''Baseline Terminal EBITDA  Multiple:'''
|17.4 x
|
| colspan="3" |'''Baseline Terminal FCF  Growth Rate:'''
|0.75%
|-
|
|'''Discount Rate (WACC):'''
|
|10.10%
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|-
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|'''Effective Tax Rate:'''
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|22.0%
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| colspan="2" |'''Baseline Terminal Value:'''
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|$         192,588
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| colspan="2" |'''Baseline Terminal Value:'''
|
|$    192,875
|-
|
|'''Last Fiscal Year:'''
|
|2022-01-31
|
| colspan="3" |'''Implied Terminal FCF  Growth Rate:'''
|0.74%
|
| colspan="3" |'''Implied Terminal EBITDA  Multiple:'''
|17.4 x
|-
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|-
|
|'''Current Equity Value:'''
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|$             38,785
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| colspan="2" |'''(+) PV of Terminal  Value:'''
|
|           119,034
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| colspan="2" |'''(+) PV of Terminal  Value:'''
|
|      119,212
|-
|
|'''(-) Cash & Cash-Equivalents:'''
|
|               (7,416)
|
| colspan="3" |'''(+) Sum of PV of Free  Cash Flows:'''
|             52,417
|
| colspan="3" |'''(+) Sum of PV of Free  Cash Flows:'''
|        52,417
|-
|
|'''(-) Equity Investments:'''
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|                   (533)
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| colspan="2" |'''Implied Enterprise Value:'''
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|           171,451
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| colspan="2" |'''Implied Enterprise Value:'''
|
|      171,628
|-
|
|'''(-) Other Non-Core Assets, Net:'''
|
|                         -
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|-
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|'''(-) Net Operating Losses:'''
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|               (6,350)
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| colspan="3" |'''% of Implied TEV from  Terminal Value:'''
|69.4%
|
| colspan="3" |'''% of Implied TEV from  Terminal Value:'''
|69.5%
|-
|
|'''(+) Total Debt & Finance Leases:'''
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|                 8,492
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|-
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|'''(+) Preferred Stock:'''
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|                         -
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| colspan="2" |'''(+) Cash &  Cash-Equivalents:'''
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|               7,416
|
| colspan="2" |'''(+) Cash &  Cash-Equivalents:'''
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|          7,416
|-
|
|'''(+) Noncontrolling Interests:'''
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|                 1,041
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| colspan="2" |'''(+) Equity Investments:'''
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|                  533
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| colspan="2" |'''(+) Equity Investments:'''
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|             533
|-
|
|'''(+) Unfunded Pension Obligations:'''
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|                         -
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| colspan="3" |'''(+) Other Non-Core  Assets, Net:'''
|                       -
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| colspan="3" |'''(+) Other Non-Core  Assets, Net:'''
|                -
|-
|
|'''Current Enterprise Value:'''
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|$             34,019
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| colspan="2" |'''(+) Net Operating  Losses:'''
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|               6,350
|
| colspan="2" |'''(+) Net Operating Losses:'''
|
|          6,350
|-
|
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|
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| colspan="3" |'''(-) Total Debt &  Capital Leases:'''
|              (8,492)
|
| colspan="2" |'''(-) Total Debt:'''
|
|        (8,492)
|-
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| colspan="2" |'''(-) Preferred Stock:'''
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|                       -
|
| colspan="2" |'''(-) Preferred Stock:'''
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|                -
|-
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| colspan="2" |'''(-) Noncontrolling  Interests:'''
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|              (1,041)
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| colspan="2" |'''(-) Noncontrolling  Interests:'''
|
|        (1,041)
|-
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| colspan="3" |'''(-) Unfunded Pension  Obligations:'''
|                       -
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| colspan="3" |'''(-) Unfunded Pension  Obligations:'''
|                -
|-
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| colspan="2" |'''Implied Equity Value:'''
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|           176,217
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| colspan="2" |'''Implied Equity Value:'''
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|      176,394
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| colspan="2" |'''Diluted Shares  Outstanding:'''
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|               150.2
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| colspan="2" |'''Diluted Shares  Outstanding:'''
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|          150.2
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| colspan="2" |'''Implied Share Price from  DCF:'''
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|$        1,173.21
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| colspan="2" |'''Implied Share Price from  DCF:'''
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|$   1,174.40
|-
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| colspan="3" |'''Premium / (Discount) to  Current:'''
|57.3%
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| colspan="3" |'''Premium / (Discount) to  Current:'''
|57.5%
|}
{| class="wikitable"
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| colspan="3" |Historical:
| colspan="5" |Projected:
|-
| colspan="2" |'''Unlevered  Free Cash Flow Projections:'''
|Units:
|FY19
|FY20
|FY21
|FY22
|FY23
|FY24
|FY25
|FY26
|FY27
|-
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|-
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|'''AUM:'''
|M
|7,429,633
|8,676,680
|10,010,143
|8,594,485
|9,275,739
|10,017,557
|10,825,699
|11,563,964
|12,356,733
|-
|
|'''Equity'''
|M
|3,820,329
|4,419,806
|5,342,360
|4,435,354
|4,878,889
|5,366,778
|5,903,456
|6,375,733
|6,885,791
|-
|
|'''Growth Rate:'''
|%
|N/A  
|15.7%
|20.9%
|(17.0%)
|10.0%
|10.0%
|10.0%
|8.0%
|8.0%
|-
|
|'''Fixed Income'''
|M
|2,315,392
|2,674,488
|2,822,041
|2,536,823
|2,638,296
|2,743,828
|2,853,581
|2,967,724
|3,086,433
|-
|
|'''Growth Rate:'''
|%
|N/A  
|15.5%
|5.5%
|(10.1%)
|4.0%
|4.0%
|4.0%
|4.0%
|4.0%
|-
|
|'''Multi-asset'''
|M
|568,121
|658,733
|816,494
|684,904
|732,847
|784,147
|839,037
|880,989
|925,038
|-
|
|'''Growth Rate:'''
|%
|N/A  
|15.9%
|23.9%
|(16.1%)
|7.0%
|7.0%
|7.0%
|5.0%
|5.0%
|-
|
|'''Alternatives'''
|M
|178,072
|235,042
|264,881
|266,210
|300,817
|339,924
|384,114
|426,366
|473,266
|-
|
|'''Growth Rate:'''
|%
|N/A  
|32.0%
|12.7%
|0.5%
|13.0%
|13.0%
|13.0%
|11.0%
|11.0%
|-
|
|'''Cash Management'''
|M
|545,949
|666,252
|755,057
|671,194
|724,890
|782,881
|845,511
|913,152
|986,204
|-
|
|'''Growth Rate:'''
|%
|N/A  
|22.0%
|13.3%
|(11.1%)
|8.0%
|8.0%
|8.0%
|8.0%
|8.0%
|-
|
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|-
|
|'''Fees (For given AUM Performance)'''
|Rev $ / AUM $
|0.159%
|0.146%
|0.152%
|0.168%
|0.173%
|0.179%
|0.185%
|0.192%
|0.198%
|-
|
|'''Fees % on Equity;'''
|Rev $ / AUM $
|0.150%
|0.133%
|0.150%
|0.162%
|0.167%
|0.172%
|0.177%
|0.183%
|0.188%
|-
|
|'''Growth Rate:'''
|%
|N/A  
|(10.8%)
|12.2%
|8.4%
|3.0%
|3.0%
|3.0%
|3.0%
|3.0%
|-
|
|'''Fees % on Fixed Income;'''
|Rev $ / AUM $
|0.119%
|0.133%
|0.146%
|0.135%
|0.139%
|0.143%
|0.147%
|0.152%
|0.156%
|-
|
|'''Growth Rate:'''
|%
|N/A  
|11.8%
|9.3%
|(7.5%)
|3.0%
|3.0%
|3.0%
|3.0%
|3.0%
|-
|
|'''Fees % on Multi-asset'''
|Rev $ / AUM $
|0.202%
|0.177%
|0.173%
|0.190%
|0.195%
|0.201%
|0.207%
|0.213%
|0.220%
|-
|
|'''Growth Rate:'''
|%
|N/A  
|(12.6%)
|(1.9%)
|9.5%
|3.0%
|3.0%
|3.0%
|3.0%
|3.0%
|-
|
|'''Fees % on Alternatives;'''
|Rev $ / AUM $
|0.567%
|0.531%
|0.571%
|0.597%
|0.609%
|0.621%
|0.634%
|0.647%
|0.659%
|-
|
|'''Growth Rate:'''
|%
|N/A  
|(6.4%)
|7.7%
|4.6%
|2.0%
|2.0%
|2.0%
|2.0%
|2.0%
|-
|
|'''Fees % on Cash Management;'''
|Rev $ / AUM $
|0.113%
|0.119%
|0.062%
|0.129%
|0.134%
|0.139%
|0.145%
|0.151%
|0.157%
|-
|
|'''Growth Rate:'''
|%
|N/A  
|4.7%
|(47.5%)
|106.8%
|4.0%
|4.0%
|4.0%
|4.0%
|4.0%
|-
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|-
|
|'''COGS and OpEx per AUM:'''
|$ / AUM $
|           0.001210
|       0.001211
|        0.001191
|       0.001336
|         0.001403
|         0.001473
|         0.001547
|       0.001624
|         0.001705
|-
|
|'''Growth Rate:'''
|%
|N/A  
|0.1%
|(1.6%)
|12.2%
|5.0%
|5.0%
|5.0%
|5.0%
|5.0%
|-
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|-
|
|'''Maintenance CapEx per AUM:'''
|$ / AUM $
|         0.0000342
|     0.0000224
|      0.0000341
|     0.0000620
|       0.0000992
|       0.0001588
|       0.0002540
|     0.0004064
|       0.0006503
|-
|
|'''Growth Rate:'''
|%
|N/A  
|(34.6%)
|52.4%
|82.1%
|60.0%
|60.0%
|60.0%
|60.0%
|60.0%
|-
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|-
|
|'''D&A per AUM:'''
|$ / AUM $
|       0.00003984
|   0.00004126
|    0.00004146
|   0.00004864
|     0.00005107
|     0.00005362
|     0.00005630
|   0.00005912
|     0.00006207
|-
|
|'''Growth Rate:'''
|%
|N/A  
|3.6%
|0.5%
|17.3%
|5.0%
|5.0%
|5.0%
|5.0%
|5.0%
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|
|'''Growth CapEx per New AUM:'''
|$ / AUM $
|
|
|
|
|           0.00029
|         0.000299
|         0.000308
|       0.000315
|         0.000323
|-
|
|'''Growth Rate:'''
|%
|
|
|
|
|
|3.0%
|3.0%
|2.5%
|2.5%
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|
|'''Tech and Advisory Services Growth Rate:'''
|%
|29.1%
|15.4%
|(16.8%)
|15.0%
|15.0%
|15.0%
|15.0%
|15.0%
|15.0%
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|
|'''Revenue:'''
|
|
|
|
|
|
|
|
|
|
|-
|
|'''(+) Equity Sales'''
|$ M
|$               5,716
|$           5,900
|$            8,000
|$           7,203
|$             8,161
|$             9,246
|$           10,476
|$         11,654
|$           12,964
|-
|
|'''(+) Fixed Income Sales'''
|$ M
|$               3,286
|$           3,539
|$            3,863
|$           3,495
|$             3,666
|$             3,927
|$             4,206
|$           4,506
|$             4,827
|-
|
|'''(+) Multi-asset Sales'''
|$ M
|$               1,148
|$           1,163
|$            1,414
|$            1,299
|$             1,432
|$             1,578
|$             1,739
|$           1,881
|$             2,034
|-
|
|'''(+) Alternatives Sales'''
|$ M
|$               1,009
|$           1,247
|$            1,513
|$           1,590
|$             1,833
|$             2,112
|$             2,435
|$           2,756
|$             3,121
|-
|
|'''(+) Cash Managment Sales'''
|$ M
|$                  618
|$              790
|$               470
|$              864
|$                970
|$             1,090
|$             1,224
|$           1,375
|$             1,545
|-
|
|'''(+) Net Sales:'''
|$ M
|$             11,777
|$         12,639
|$          15,260
|$         14,451
|$           16,061
|$           17,953
|$           20,080
|$         22,172
|$           24,489
|-
|
|'''(+) Tech and Advisory Services:'''
|$ M
|                 2,762
|             3,566
|              4,114
|             3,422
|               3,935
|               4,526
|               5,204
|             5,985
|               6,883
|-
|
|'''Total Revenue:'''
|$ M
|               14,539
|           16,205
|            19,374
|           17,873
|             19,997
|             22,479
|             25,285
|           28,157
|             31,372
|-
|
|'''Revenue Growth:'''
|%
|N/A  
|11.5%
|19.6%
|(7.7%)
|11.9%
|12.4%
|12.5%
|11.4%
|11.4%
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|
|'''Operating Income (EBIT):'''
|$ M
|                 5,550
|             5,700
|              7,450
|             6,390
|               6,984
|               7,722
|               8,541
|             9,377
|             10,301
|-
|
|'''Operating (EBIT) Margin:'''
|%
|38.2%
|35.2%
|38.5%
|35.8%
|34.9%
|34.4%
|33.8%
|33.3%
|32.8%
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|
|'''(-) Taxes, Excluding Effect of Interest:'''
|$ M
|               (1,221)
|           (1,254)
|             (1,639)
|           (1,406)
|              (1,536)
|              (1,699)
|              (1,879)
|            (2,063)
|              (2,266)
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|
|'''Net Operating Profit After Tax (NOPAT):'''
|$ M
|                 4,329
|             4,446
|              5,811
|             4,984
|               5,447
|               6,024
|               6,662
|             7,314
|               8,035
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|
|'''Adjustments for Non-Cash Charges:'''
|
|
|
|
|
|
|
|
|
|
|-
|
|'''(+) Depreciation & Amortization:'''
|$ M
|                     296
|                358
|                 415
|                418
|                  474
|                  537
|                  610
|                684
|                  767
|-
|
|'''% Revenue:'''
|%
|2.0%
|2.2%
|2.1%
|2.3%
|2.4%
|2.4%
|2.4%
|2.4%
|2.4%
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|
|'''(+/-) Deferred Taxes:'''
|$ M
|                     796
|             1,028
|              2,369
|             1,635
|               1,536
|               1,699
|               1,879
|             2,063
|               2,266
|-
|
|'''% Book Taxes:'''
|%
|65.2%
|82.0%
|144.5%
|116.3%
|100.0%
|100.0%
|100.0%
|100.0%
|100.0%
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|
|'''(+/-) Other Operating Activities:'''
|$ M
|                 1,243
|             1,331
|              1,450
|             1,527
|               1,616
|               1,816
|               2,043
|             2,275
|               2,535
|-
|
|'''% Revenue:'''
|%
|8.5%
|8.2%
|7.5%
|8.5%
|8.1%
|8.1%
|8.1%
|8.1%
|8.1%
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|
|'''Change in Working Capital:'''
|
|
|
|
|
|
|
|
|
|
|-
|
|'''Accounts Receivable:'''
|$ M
|                 3,179
|             3,535
|              3,789
|             3,264
|
|
|
|
|
|-
|
|'''Accounts Payable:'''
|$ M
|               (1,167)
|           (1,028)
|             (1,379)
|           (1,294)
|
|
|
|
|
|-
|
|'''(+/-) Change in Working Capital:  '''
|$ M
|                 2,012
|             2,507
|              2,410
|             1,970
|               2,364
|               2,837
|               3,404
|             4,085
|               4,902
|-
|
|'''% Change in Revenue:'''
|%
|N/A  
|150.5%
|76.0%
|(131.2%)
|120.0%
|120.0%
|120.0%
|120.0%
|120.0%
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|
|'''(-) Capital Expenditures:'''
|$ M
|                   (254)
|              (194)
|                (341)
|              (533)
|                 (549)
|                 (564)
|                 (578)
|               (591)
|                 (604)
|-
|
|'''% Revenue:'''
|%
|1.7%
|1.2%
|1.8%
|3.0%
|2.7%
|2.5%
|2.3%
|2.1%
|1.9%
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|
|'''Annual Unlevered Free Cash Flow:'''
|$ M
|                 8,422
|             9,476
|            12,114
|           10,001
|             10,888
|             12,349
|             14,019
|           15,829
|             17,902
|-
|
|'''Growth Rate:'''
|%
|N/A
|12.5%
|27.8%
|(17.4%)
|8.9%
|13.4%
|13.5%
|12.9%
|13.1%
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|
|'''Period:'''
|#
|
|
|
|
|1
|2
|3
|4
|5
|-
|
|'''PV of Unlevered FCF:'''
|$ M
|
|
|
|
|               9,889
|             10,187
|             10,504
|           10,772
|             11,065
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|
|'''EBITDA:'''
|$ M
|$               5,846
|$           6,058
|$            7,865
|$           6,808
|$             7,457
|$             8,260
|$             9,150
|$         10,060
|$           11,068
|-
|
|'''Growth Rate:'''
|%
|N/A
|N/A
|29.8%
|(13.4%)
|9.5%
|10.8%
|10.8%
|9.9%
|10.0%
|}
{| class="wikitable"
| colspan="2" |'''Discount Rate Calculations - Assumptions:'''
|
|
|
|
|
|
|-
|'''Risk-Free Rate:'''
|
|3.90%
|
|
|
|
|
|-
|'''Equity Risk Premium:'''
|
|5.00%
|
|
|
|
|
|-
|'''Pre-Tax Cost of Debt:'''
|
|3.73%
|
|
|
|
|
|-
|'''Cost of Preferred Stock:'''
|
|– 
|
|
|
|
|
|-
|
|'''Debt'''
|'''% Debt'''
|'''Stock'''
|'''% Preferred'''
|'''Equity'''
|'''% Equity'''
|'''Beta'''
|-
|'''Current  Capital Structure:'''
|$        1,073
|2.7%
|$              -
|–
|$      38,785
|97.3%
|            1.28
|-
|'''Cost of Equity Based on  Historical Beta:'''
|
|
|
|
|
|
|10.30%
|-
|'''WACC, Current Capital  Structure:'''
|
|
|
|
|
|
|10.10%
|}
==== Ratios ====
{| class="wikitable"
|
|'''Mkt Cap (USD)'''
|'''BF P/E'''
|'''BF EV/EBITDA'''
|'''BF EV/EBIT'''
|'''BF EV/Rev'''
|'''LF P/BV'''
|-
|'''BlackRock'''
|109.89B
|19.1x
|14.4x
|15.5x
|5.9x
|2.9x
|-
|'''Mean from Comps'''
|8.94B
|12.3x
|8.7x
|9.7x
|3.2x
|2.1x
|}
== Competition ==
# '''Vanguard Group''': Vanguard is one of the world's largest investment management companies, known for its low-cost index funds and exchange-traded funds (ETFs). It competes with BlackRock in the passive investing space.
# '''State Street Global Advisors (SSGA)''': SSGA is another prominent asset management firm, offering a variety of investment strategies, including ETFs and active funds. It is a significant player in the institutional investor market and often competes with BlackRock for institutional mandates.
# '''Fidelity Investments''': Fidelity is a well-known financial services company offering various investment products, retirement planning, and brokerage services. It competes with BlackRock in both active and passive investment segments.
# '''JPMorgan Asset Management''': JPMorgan's asset management arm offers a diverse range of investment solutions to institutional and retail clients. It competes with BlackRock in various investment categories, such as mutual funds and alternative investments.
# '''PIMCO (Pacific Investment Management Company)''': PIMCO is a global investment management firm that specializes in fixed-income strategies. It competes with BlackRock in the bond and fixed-income markets.
# '''Goldman Sachs Asset Management (GSAM)''': GSAM provides a wide range of investment products and services to institutional and individual clients. It competes with BlackRock in various asset management and alternative investment offerings.
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