Is BSTZ Stock Undervalued?

A comprehensive valuation analysis of Blackrock Science & Technology Term Trust (BSTZ) examining current multiples, intrinsic value, and comparing to analyst expectations.

8 min readView Full Analysis

Valuation Verdict

Potentially Undervalued

18486947385.5% upside potential

Based on our analysis, Blackrock Science & Technology Term Trust appears to be potentially undervalued at the current price of $22.37. Our fair value estimate of $4135530152.50 suggests upside potential of approximately 18486947385.5%.

Current Valuation Metrics

Valuation ratios help us understand how the market is pricing BSTZ relative to its fundamentals. Let's examine the key multiples investors are paying today.

P/E Ratio
3.60
Low
P/B Ratio
1.02
Moderate
P/S Ratio
11.48
High
EV/EBITDA
N/A

Understanding the Metrics

  • P/E Ratio: At 3.60x earnings, BSTZ is trading below the typical market average of 15-20x.
  • P/B Ratio: A P/B of 1.02 means investors pay $1.02 for every $1 of book value.
  • P/S Ratio: The price-to-sales ratio of 11.48 indicates how much investors value each dollar of revenue.
  • EV/EBITDA: EBITDA data not available.

Fair Value Estimate

Using a discounted cash flow (DCF) model, we estimate the intrinsic value of Blackrock Science & Technology Term Trust stock. This fundamental analysis looks at the company's ability to generate future cash flows and discounts them back to today's value.

Current Price
$22.37
vs
Fair Value Estimate
$4135530152.50
Implied Return+18486947385.5%

Our DCF model suggests BSTZ may be undervalued by approximately 18486947385.5%. This implies the market may be pricing in more pessimistic growth expectations than our base case scenario.

Investment Conclusion

Bottom Line

Based on our comprehensive valuation analysis, Blackrock Science & Technology Term Trust (BSTZ) appears to be undervalued at $22.37. With a fair value estimate of $4135530152.50, the stock offers potential upside for long-term investors willing to wait for the market to recognize its intrinsic value.

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Always conduct your own research and consult with a financial advisor before making investment decisions. Past performance does not guarantee future results.

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