KKR

KKR & Co Inc

Finance/Real Estate


Presented:11/14/2019
Price:$29.40
Cap:$16.18B
Current Price:$135.78
Cap:$120.50B

Presented

Date11/14/2019
Price$29.40
Market Cap$16.18B
Ent Value$56.18B
P/E Ratio15.52x
Book Value$17.62
Div Yield1.7%
Shares O/S550.46M
Ave Daily Vol2,878,251
Short IntN/A

Current

Price$135.78
Market Cap$120.50B
KKR & Co., Inc. provides investment and private equity asset management services. It manages investments across multiple asset classes includes private equity, energy, infrastructure, real estate, credit and hedge funds. The firm operates business through four business segments: Private Markets, Public Markets, Capital Markets and Principal Activities. The Private Markets segment is comprised of the global private equity business, which manages and sponsors a group of investment funds and vehicles that invest capital for long-term appreciation, either through controlling ownership of a company or strategic minority positions. The Public Markets segment is comprised primarily of the company fixed income businesses which manage capital in liquid credit strategies, such as leveraged loans and high yield bonds, and less liquid credit products. The Capital Markets segment combines the assets acquired in the Combination Transaction with the company's global capital markets business. The Principal Activities segment manages the firm's own assets and deploys capital to support and grow the businesses. The company was founded by Henry R. Kravis and George R. Roberts in 1976 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: Brookfield Asset Management Inc (BAM), First Data Corp (FDC), Fiserv Inc (FISV), KKR & Co Inc (KKR), S&P Global Inc (SPGI)

Highlights

The presenter is long shares of KKR & Co Inc (KKR), which he views as an undervalued company made up of three distinct businesses: Fee Related Earnings (FRE) generated by management fees, its balance sheet, and its private equity business. He values FRE at ~$20 per share and the balance sheet at $10 per share, which together is about equal to KKR’s current ~$29 share price. Therefore, this can be framed as effectively buying a free call option on the private equity business, which he values at ~$10 per share. According to the presenter, the stock’s upside to ~$40 per share will be realized through catalysts such as an improved shareholder base, dividend increases, and ETF inclusion. 

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.