KKR & Co, the alternative asset management firm that is also a leader in private equity is undervalued, according to Wolfteam Ltd.'s projections and estimates.
KKR's intrinsic value is 250 billion USD, compared with KKR's market capitalization of 137.62 billion USD, in Wolfteam Ltd.'s view.
Wall Street equity research analysts, when they issue 'Buy', 'Sell' or 'Hold' recommendations model out 0, zero return in their MS Excel models of the income statement, balance sheet and cash flows for Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. and other leading private equity, real estate and credit firms, when Wall Street equity research analysts attempt to value the private equity firms.
History has shown that Wall Street equity research professionals' assumption of Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc., also of middle sized and small private equity firms that they make 0, zero return on their investments is erroneous.
On the contrary, Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. do make returns on their private equity investments, many a years beating the yearly return of the Standard and Poor's 500 index.
KKR has a growth oriented portfolio as large part of its private equity, real estate and credit and lending assets under management are invested in technology companies, artificial intelligence, AI real estate infrastructure and credit and lending CLOs, CDOs encompassing loans made for the buy out of technology companies.
Since we are living in the fourth industrial revolution or artificial intelligence, AI one can safely assume that in the next 2 to 5 years KKR will continue to earn outsized returns on its investment portfolio.
That is what chiefly makes KKR undervalued.
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