Blackstone (BX) is back in focus after its Blackstone Digital Infrastructure Trust priced an initial public offering of 87.5 million shares at US$20, targeting income generating data centers leased to investment grade hyperscale clients.

Despite headlines around the BXDC listing and new AI partnerships, Blackstone’s share price has come under pressure, with a 30 day share price return of down 8.7% and a year to date share price return of down 25.8%. However, the 3 year total shareholder return of 55.7% points to much stronger longer term performance and suggests recent momentum has faded.

If this data center and AI push has caught your attention, it could be a good moment to scan for other infrastructure enablers through our 42 AI infrastructure stocks

With Blackstone trading well below its recent highs despite solid recent revenue and net income growth, the question is whether the current price underestimates its AI and data center push or if the stock already reflects future growth.

Most Popular Narrative: 27.3% Undervalued

Blackstone's most followed narrative pegs fair value at $162.26 per share, compared with the last close of $117.89, framing the current weakness as a potential discount.

Blackstone is positioned for strong future growth with high inflows and substantial capital for opportunistic investments in undervalued assets. Strategic alliances and innovations in private credit and wealth management aim to boost revenue through expanded market reach and larger spreads.

Want to see what kind of earnings and margin profile sits behind that gap to fair value? The narrative focuses on faster growth, higher profitability and a richer future earnings multiple. Curious which assumptions really carry the model? The full story joins those pieces together.

Result: Fair Value of $162.26 (UNDERVALUED)

However, shifts in tariffs, trade talks, or a weaker real estate cycle could still pressure asset values, slow deployment, and challenge the earnings and margin assumptions behind that upside case.

Another View: What Earnings Multiples Are Signalling

The fair value narrative suggests Blackstone looks 27.3% undervalued, yet the current P/E of 30.3x sits slightly above the peer average of 29.4x and well above its fair ratio of 24.7x. That gap points to valuation risk, so which signal should carry more weight?

Next Steps

Sentiment around Blackstone is clearly mixed, with both caution and optimism in play. It can be useful to review the data now and build your own take using these 3 key rewards and 3 important warning signs

Looking for more investment ideas?

Do not stop your research with one stock. Use powerful filters to quickly surface other opportunities that fit the kind of portfolio you actually want to build.

• Target potential mispricings by scanning 51 high quality undervalued stocks that combine quality fundamentals with prices that may not fully reflect their underlying business strength.
• Prioritise resilience by checking 65 resilient stocks with low risk scores that score well on stability so short term volatility is less likely to knock your plan off track.
• Get ahead of the crowd by reviewing a screener containing 21 high quality undiscovered gems before they appear on everyone else's radar.

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.