BlackRock, Inc. (BLK) Two-Stage Dividend Discount Model - Discounting Cash Flows
BLK
BlackRock, Inc.
BLK (NYSE)

Estimated Value

USD

Market Price USD

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Two-Stage Dividend Discount Model

Used to estimate the value of companies based on two stages of growth. An initial period of high growth, calculated using [Sum of Discounted Dividends], followed by a period of stable growth, calculated using [Discounted Terminal Value].

Read more: GitHub Documentation

Interactive Assumptions

Discount Rate

Discount Rate

Discount Rate = Cost of Equity = Risk Free Rate + Beta * Market Premium

The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula.

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↳ Beta

Beta

Beta is a value that measures the price fluctuations (volatility) of a stock with respect to fluctuations in the overall stock market.

↳ Risk Free Rate

Risk-Free Rate

The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time. By default, it is equal to the current yield of the U.S. 10 Year Treasury Bond.

↳ Market Premium

Market Premium

Market risk premium represents the excess returns over the risk-free rate that investors expect for taking on the incremental risks connected to the equities market.

High Growth Years

High Growth Years

The estimated number of years during which the company is expected to experience high growth. After this period, the company will transition to a stable growth phase.

Historical Years

Historical Years

The number of historical years used to calculate averages for historical data.

High Growth Rate

High Growth Rate

The estimated growth rate of Earnings Per Share (EPS) during the high-growth phase.

High Growth Payout

High Growth Payout

The estimated dividend payout rate expressed as a percentage of Earnings Per Share (EPS) during the high-growth phase.

Stable Growth In Perpetuity

Stable Growth in Perpetuity

The estimated stable rate at which the company's Earnings Per Share (EPS) will grow in perpetuity after the last projected period.

Stable Payout

Stable Payout

The estimated dividend payout rate expressed as a percentage of Earnings Per Share (EPS) after the last projected period.

Results

Sum of discounted dividends 90.48 USD
Discounted terminal value 449.8 USD
Terminal value 741.3 USD
Dividend in stable phase 45.67 USD
EPS in stable phase 65.7 USD
Average historical Dividend Growth Rate 9.51%
Average historical Payout Ratio 46.52%
Average historical Return on Equity 14.27%

Historical and Projected Dividends

Monetary values are in USD

Edit Chart Values 2025 2026 2027 2028 2029

amounts of USD except for #

2024 LTM 2025 2026 2027 2028 2029
Earnings Per Share 42.45 41.61 43.77 47.94 52.5 57.49 62.96
Dividend per Share 20.4 20.62 20.36 22.3 24.42 26.74 29.29
Dividend Growth Rate 2% 1.08% -0.186% 9.51% 9.51% 9.51% 9.51%
Discounted Dividend 20.4 20.62 18.43 18.26 18.09 17.93 17.77

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Net Income 4,949 6,306 6,369 5,502 5,178 5,901 4,932 4,476 4,305 4,952 3,172 3,345
Equity 36,450 48,036 47,495 39,347 37,744 37,693 35,283 33,547 32,374 31,825 29,098 28,503
Return on Equity 14.27% 13.28% 16.19% 14.58% 13.74% 16.72% 14.7% 13.83% 13.53% 17.02% 11.13% 12.22%
Common Dividends 2,320 3,196 3,061 2,986 2,946 2,515 2,229 2,059 1,935 1,628 1,512 1,457
Payout Ratio 46.52% 49.56% 48.06% 54.27% 56.89% 42.62% 45.19% 46.01% 44.93% 32.87% 47.73% 43.56%
Shares Outstanding 156.6 155 150 149.3 150.9 152.2 153.5 156 160.9 162.8 165.1 167.1
Reference Market Price 672.2 1082 1025 811.8 708.6 915.6 721.5 502.7 392.8 513.7 380.5 340.5
EPS 31.93 41.61 42.45 36.85 34.31 38.76 32.13 28.69 26.75 30.42 19.19 20.02
Dividend per Share 14.97 20.62 20.4 20 19.52 16.52 14.52 13.2 12.02 10.0 9.16 8.72
Dividend Growth Rate 9.51% 1.08% 2% 2.46% 18.16% 13.77% 10% 9.82% 20.2% 9.17% 5.05% 12.95%
Dividend Yield 2.32% 1.91% 1.99% 2.46% 2.76% 1.8% 2.01% 2.63% 3.06% 1.95% 2.41% 2.56%
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Discounting Cash Flows

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