BlackRock Inc

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker	Analyst	Analyst Email
Deutsche Bank Research	Brian Bedell	brian.bedell@db.com
Wells Fargo Securities	Christopher Harris	christopher.harris1@wellsfargo.com
Credit Suisse	Craig Siegenthaler	craig.siegenthaler@credit-suisse.com
Jefferies	Daniel T. Fannon	dfannon@jefferies.com
RBC Capital Markets	Eric N. Berg	eric.berg@rbccm.com
Evercore ISI	Glenn Schorr	glenn.schorr@evercoreisi.com
Piper Jaffray	Jason Weyeneth	jason.l.weyeneth@pjc.com
Bernstein Research	Luke Montgomery	lucas.montgomery@bernstein.com
Gabelli & Company	Macrae Sykes	msykes@gabelli.com
Keefe Bruyette & Woods	Robert Lee	rlee@kbw.com

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Primary Input Data

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Derived Input Data

Derived Input	Label	2015 Value	2016 Value	Equational Form
Net Operating Profit Less Adjusted Taxes	NOPLAT	2,937	2,922	$NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)$
Free Cash Flow	FCF	3,433	2,518	$FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS$
Tax Shield	TS	55	59	$TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income$
Invested Capital	IC	33,974	34,259	$IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital$
Return on Invested Capital	ROIC	8.64%	8.53%	$ROIC\,=\,\frac { NOPLAT }{ IC }$
Net Investment	NetInv	1,811	548	$NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation$
Investment Rate	IR	61.67%	18.75%	$IR\,=\,\frac {NetInv}{NOPLAT}$
Weighted Average Cost of Capital	WACC_Market	7.29%	5.35%	$WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)$
Weighted Average Cost of Capital	WACC_Book	10.93%	10.27%
Enterprise value	EV_Market	55,547	61,206	$EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash$
Enterprise value	EV_Book	55,088	60,814
Long-Run Growth	g = IR x ROIC	5.33%	1.60%	Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
Long-Run Growth	g = % $\Delta$ GDP	2.50%	2.50%
Margin from Operations	M	39.43%	40.11%	$M\,\,=\,\,\frac{EBIT}{SALES}$
Depreciation/Amortization Rate	D	6.13%	5.53%	$D\,\,=\,\,\frac{D+A}{EBITDA}$

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form	Observed Value		Single-stage multiple g solution		Two-stage valuation model g solution
Equational Form	12/31/2015	12/31/2016	12/31/2015	12/31/2016	12/31/2015	12/31/2016
EV/SALES $\frac {EV}{Sales} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)$	4.85	5.46	5.17%	1.30%	5.62%	2.11%
EV/EBITDA $\frac {EV}{EBITDA} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)$	11.54	12.86	5.17%	1.30%	5.62%	2.11%
EV/NOPLAT $\frac {EV}{NOPLAT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}$	18.91	20.94	5.17%	1.30%	5.62%	2.11%
EV/FCF_OPS $\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	16.18	24.31	5.17%	1.30%	5.62%	2.11%
EV/EBIT $\frac {EV}{EBIT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	12.29	13.61	5.17%	1.30%	5.62%	2.11%
EV/IC $\frac {EV}{IC} \,= \,\frac{ROIC\, -\, g}{WACC\,-\,g}$	1.63	1.79	5.17%	1.30%	5.62%	2.11%

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