Buffett Brain · Research note
Score updated 26 Oct 2026 · analysis from 24 May 2026
BX· Financial Services
Blackstone
Blackstone's high ROIC of 20.4% is overshadowed by negative EPS growth and a stretched valuation at a P/E of 30.2.
Buffett fit
Strong fit
Owner
70
Durability
40
Management
42
Price
39
Score updated 26 Oct 2026 · analysis from 24 May 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Financial Services stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning 100% of Blackstone would mean managing a vast and complex portfolio of alternative investments.
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Blackstone's durability is challenged by its negative revenue and EPS growth over the past five years, with EPS declining by 71.01% at its worst.
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Blackstone's shows a share count CAGR of 2.06% and a yield of 0.44%, indicating limited shareholder returns through buybacks.
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The current of 30.2 and yield of 1.23% suggest a high price relative to earnings, with limited .
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 20.4% is top-quintile within the Financial Services sector.
- 2 of 87.5% significantly exceeds the sector's top-quintile cutoff.
- 3Interest coverage ratio of 13.9 indicates strong ability to cover interest expenses.
- 4Net debt/EBITDA of 1.59 shows moderate .
Concerns
5- 1 of 30.2 suggests high valuation relative to earnings.
- 2EPS CAGR of -16.91% indicates declining earnings over five years.
- 3Revenue CAGR of -4.82% highlights shrinking top-line growth.
- 4Dividend CAGR of -5.79% suggests declining dividend payments.
Price history
$117-15.4%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Blackstone Inc. specializes in alternative asset management across real estate, private equity, and hedge fund solutions. Its revenue is largely driven by management fees and carried interest from its diverse investment portfolio. Despite a high of 87.5%, the firm's revenue has declined at a CAGR of -4.82% over the past five years. Unit economics are pressured by a of 30.2, which suggests a high valuation relative to earnings.
What other investors would say
The same company, judged by three other documented playbooks.
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