KKR (KKR) Joins Uniper Bid, Is The Stock Fully Priced?
KKR’s bid for Uniper and what it could mean for investors
KKR (KKR) is back in focus after reports that it joined a consortium bid for German utility Uniper, alongside RWE, competing with Apollo and Equinor for the state backed energy group.
Against that backdrop, KKR’s recent bids and acquisitions come at a time when its share price has slid, with the 30 day share price return down 13.8% and the year to date share price return down 32.4%. However, the 3 year total shareholder return sits at 47.1%, which indicates that longer term holders have still seen gains despite the recent loss of momentum.
Scan how KKR’s latest moves compare with other alternative asset managers under pressure by reviewing a curated list of 20 high quality undiscovered gems in similar corners of the market.
After a 32.4% share price slide this year, set against fresh bids like Uniper and the Gen II deal, does KKR still offer a reward that justifies the risk at today’s valuation, or has the balance shifted?
Most Popular Narrative: 3% Overvalued
KKR last closed at $87.16 while the most followed narrative, which applies a discount rate of 9.16%, estimates fair value at $84.45. That gap is small, yet it frames today’s share price as slightly ahead of what the underlying cash generation might support.
Desde un enfoque Buffett puro:
KKR empieza a parecer menos un gestor de private equity y más un “compounder de capital permanente”.
Lectura final:
• Valor intrínseco: ~$105 a $120 por acción
• Basado SOLO en negocio recurrente
• Con opcionalidad no valorada
See why 12 investors see KKR as 3% overvalued.
Result: Fair Value of $84.45 (OVERVALUED)
Still, the KKR narrative could be knocked off course if private credit markets sour further or if fundraising slows and fee related earnings come under pressure.
Find out about the key risks to this KKR narrative.
Next Steps
If you are concerned that the recent commentary on KKR is either too cautious or too optimistic and would like your own view on the potential opportunities, consider reviewing the 4 key rewards.
Looking for more investment ideas beyond KKR?
Do not stop with a view on KKR alone. Cast the net wider with focused screeners that surface opportunities you might otherwise miss.
- Target resilient balance sheets and steady fundamentals by scanning a curated list of solid balance sheet and fundamentals (25 results) that can help anchor your portfolio when conditions change.
- Hunt for value where quality and pricing meet by reviewing a focused set of 32 high quality undervalued stocks that could align better with your return expectations.
- Prioritise stability and potential income streams by zeroing in on 8 dividend fortresses that may suit a more cash focused approach.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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