Using the industry peer median P/E multiple (trailing + forward), State Street Corporation (STT) has a fair value of $214.08 based on 9 comparable companies in the Asset Management industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| State Street CorporationSTT | 36,457 | 13.4x | 12.4x |
| BlackRock, Inc.BLK | 151,648 | 27.5x | 20.6x |
| Blackstone Inc.BX | 132,768 | 28.5x | 20.6x |
| The Bank of New York Mellon CorporationBK | 81,719 | 15.8x | 16.0x |
| KKR & Co. Inc.KKR | 80,877 | 38.8x | 18.4x |
| Ameriprise Financial, Inc.AMP | 41,845 | 12.4x | 11.6x |
| Ares Management CorporationARES | 35,551 | 55.2x | 21.6x |
| Northern Trust CorporationNTRS | 25,646 | 15.8x | 15.9x |
| T. Rowe Price Group, Inc.TROW | 19,760 | 9.8x | 9.3x |
| Franklin Resources, Inc.BEN | 12,379 | 26.1x | 11.2x |
| Industry Median | 26.1x | 16.0x | |
| (*) Profit after tax | 2,945 | 2,933 | |
| Equity Value | 76,926 | 46,819 | |
| (/) Outstanding shares | 289 | 289 | |
| Fair Price | $266 | $162 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.