Is BUI undervalued? Our fair value estimate
BlackRock Utilities, Infrastructure & Power Opportunities Trust · Financial Services · NYQ
How we got here
The estimate is computed from BUI's reported fundamentals, with a growth assumption that is deliberately capped: small changes to an uncapped growth or terminal assumption can justify any price, and a number that can justify anything means nothing. These are the inputs the model holds for BUI today; the exact method, and where it goes wrong, is on the methodology page.
The starting point is earnings power: what the business earns per share, and what the market currently pays for each unit of it.
A volatility measure against the wider market. A jumpier share earns a larger discount for risk, which lowers the estimate.
Common questions
Is BlackRock Utilities, Infrastructure & Power Opportunities Trust (BUI) undervalued?
On our model, BUI at USD27.79 trades 38% below our fair value estimate of USD38.25, so it screens as undervalued today. That is one model's answer, not a recommendation: a fair value estimate is an argument about the future, and the market is frequently right about why something is cheap.
What is the fair value of BUI?
Our current fair value estimate for BlackRock Utilities, Infrastructure & Power Opportunities Trust is USD38.25 per share. The estimate moves as prices and fundamentals move.
How is BUI's fair value calculated?
From BlackRock Utilities, Infrastructure & Power Opportunities Trust's reported fundamentals: earnings power, a deliberately capped growth assumption, and a discount for balance sheet and volatility risk. The full method, including its known weaknesses, is published on our methodology page, and the interactive Valuation Lab lets you change every assumption and watch the value move.
Disagree with an assumption? Good. The Valuation Lab on the BUI app page puts every input of this model on a slider, including a reverse DCF that shows the growth the market is currently pricing in.
A fair value estimate is a model output computed from company filings and market data, refreshed daily; quotes are delayed. It is educational information, not financial advice and not a recommendation to buy or sell anything. Read the full disclaimer.