KKR & Co. Inc.

KKR

Forward P/E: 14.00×
Mkt cap: 95.5 B USD
EV: 132 B USD
Sector: Financial Services
Coverage: 2009–2025
Currency: USD
Next event: Feb 27, 2027

JP Valuation

JP Score

21,8

Out of profile · window 5 years

JP entry price

OUT OF PROFILE

No target price is issued: the company falls outside the profile this method looks for.

Financial comments4

Recurring adjustments: normalized earnings sit well above reported.
Interest coverage below 4×.
The share count grows: net dilution.
Impairment of fcf: 70 % of the window, weighted by recency → 8.4 points. It is the only place in the model where a bad year subtracts.

Calculation comments2

An anomalous year is out of the estimators; it still counts in the counters and hard cuts.
FCF, capex and net debt do not mean the same thing at a bank or an insurer: the score is issued, but read it with reservations.

Quality factors

Each factor scores 0–100 on its own scale; the score is their weighted average.

Score	Weight → points
Growth consistency1 Earnings · fit to the log-linear line · σ_resid = 0.92122 %2 Earnings · hit rate · 30 %16 %0 Earnings · volatility · σ = 0.93011 %0 Revenue · fit to the log-linear line · σ_resid = 0.37814 %0 Revenue · hit rate · 50 %11 %2 Revenue · volatility · σ = 0.6807 %0 Forward · trajectory coherence · consensus 23.2 % vs. trend -16.1 %20 %0 Short effective sample (N_eff = 3.9 < 4): the fit subcomponent is shrunk towards neutral.	·20 → 0,14
Growth pace55 Realized · -16.2 %50 %10 Expected · 23.2 %50 %100	·20 → 11,04
No recent stagnation70 Realized slowdown · 1.00×50 %40 Expected slowdown · -1.43×50 %99	·15 → 10,44
FCF quality18 FCF / net income conversion · 0.61×100 %18 Window chosen: last 5 years (the best of those evaluated). Alternative · last 3 years: conversion 0.61× → 18 points. Anomalous financial year(s) in earnings (2022): out of this component's estimators; they still count in the counters and hard cuts. Positive FCF in 2 of the 5 years in the window. An anomalous year is out of the estimators; it still counts in the counters and hard cuts.	·15 → 2,72
Debt15 Net debt / EBITDA · 3.61×100 %15 Interest coverage (EBIT / \|interest\|) = 3.3×. Interest coverage below 4×.	·15 → 2,27
Return on invested capital (ROIC)49 Level (recency-weighted mean) · 11.9 %50 %43 Spread over the required return · +0.0 pp over the 10 % required30 %60 Trend · window too short20 %— Anomalous financial year(s) in earnings or invested capital (2022): out of this component's estimators; they still count in the counters and hard cuts. An anomalous year is out of the estimators; it still counts in the counters and hard cuts.	·15 → 7,34
Weighted base	·100 → 33,95

Modifiers and penalties

The factors build the score; the modifiers correct it, within +23 / −28. Same 0–100 bar, 100 is always good.

Score	Range	Points
Gross margin trend · window too short50	±8	0,0
Altman Z'' · Z'' = 6.59100	0/−15	0,0
Shareholder returns · dilutes 1.5 % a year0 Effective buyback (net share count) · 1.5 % of dilution0 Dividend yield (last DPS / price today) · 0.7 % · does not count: the active branch is dilution—	+15/−5	-3,8
Impairment · 70 % · worst magnitude: fcf30 Earnings · 30.2 %70 Free cash flow · 69.8 %30 EBITDA · 10.2 %90	0/−12	-8,4
34,0 + 0,0 + 0,0 − 3,8 − 8,4 =21,8

Calculated on Sep 5, 2026

Score

Weight → points

Growth consistency1

Earnings · fit to the log-linear line · σ_resid = 0.92122 %2
Earnings · hit rate · 30 %16 %0
Earnings · volatility · σ = 0.93011 %0
Revenue · fit to the log-linear line · σ_resid = 0.37814 %0
Revenue · hit rate · 50 %11 %2
Revenue · volatility · σ = 0.6807 %0
Forward · trajectory coherence · consensus 23.2 % vs. trend -16.1 %20 %0
Short effective sample (N_eff = 3.9 < 4): the fit subcomponent is shrunk towards neutral.

·20 → 0,14

Growth pace55

Realized · -16.2 %50 %10
Expected · 23.2 %50 %100

·20 → 11,04

No recent stagnation70

Realized slowdown · 1.00×50 %40
Expected slowdown · -1.43×50 %99

·15 → 10,44

FCF quality18

FCF / net income conversion · 0.61×100 %18
Window chosen: last 5 years (the best of those evaluated).
Alternative · last 3 years: conversion 0.61× → 18 points.
Anomalous financial year(s) in earnings (2022): out of this component's estimators; they still count in the counters and hard cuts.
Positive FCF in 2 of the 5 years in the window.
An anomalous year is out of the estimators; it still counts in the counters and hard cuts.

·15 → 2,72

Debt15

Net debt / EBITDA · 3.61×100 %15
Interest coverage (EBIT / |interest|) = 3.3×.
Interest coverage below 4×.

·15 → 2,27

Return on invested capital (ROIC)49

Level (recency-weighted mean) · 11.9 %50 %43
Spread over the required return · +0.0 pp over the 10 % required30 %60
Trend · window too short20 %—
Anomalous financial year(s) in earnings or invested capital (2022): out of this component's estimators; they still count in the counters and hard cuts.
An anomalous year is out of the estimators; it still counts in the counters and hard cuts.

·15 → 7,34

Weighted base

·100 → 33,95

Score

Range

Points

Gross margin trend · window too short50

±8

0,0

Altman Z'' · Z'' = 6.59100

0/−15

0,0

Shareholder returns · dilutes 1.5 % a year0

Effective buyback (net share count) · 1.5 % of dilution0
Dividend yield (last DPS / price today) · 0.7 % · does not count: the active branch is dilution—

+15/−5

-3,8

Impairment · 70 % · worst magnitude: fcf30

Earnings · 30.2 %70
Free cash flow · 69.8 %30
EBITDA · 10.2 %90

0/−12

-8,4

34,0 + 0,0 + 0,0 − 3,8 − 8,4 =21,8