For the DCF valuation, in the out-years we have incorporated 4% growth rate for all factors, taking into consideration the high-growth potential of Blackstone’s EV-related metals and battery offerings.
Our SOTP valuation is based on the long-term EV/Sales multiples for Blackstone’s listed peers in the respective divisions – excluding Battery, which has been valued using the GAV approach. However, given Blackstone’s smaller operational scale vis-vis the global mining, trading and battery giants, and high execution risk, we have incorporated a material valuation discount for the respective divisions. Yet, despite the cautiousness, the SOTP measure offers the highest upside.
For the peer-based valuation, we have taken on board a combination of mining companies and (EV) battery-related proxies. However, given the (execution-related) risks, we have incorporated a 20% discount for the relative valuation measures.