Unlocking the Potential of APO Stock for Investors

A strong performer from today's afternoon trading session is Apollo Global Management, whose shares rose 3.2% to $114.67 per share. For those of you thinking about investing in the stock, here is a brief value analysis of the stock using the company's basic fundamental ratios.

Apollo Global Management's Valuation Is in Line With Its Sector Averages:

Apollo Global Management, Inc. is a private equity firm specializing in investments in credit, private equity and real estate markets. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 12.38 and an average price to book (P/B) ratio of 1.58. In contrast, Apollo Global Management has a trailing 12 month P/E ratio of 13.8 and a P/B ratio of 5.15.

When we divideApollo Global Management's P/E ratio by its expected five-year EPS growth rate, we obtain a PEG ratio of 0.91, which indicates that the market is undervaluing the company's projected growth (a PEG ratio of 1 indicates a fairly valued company). Your analysis of the stock shouldn't end here. Rather, a good PEG ratio should alert you that it may be worthwhile to take a closer look at the stock.

Generally Positive Cash Flows and a Positive EPS Growth Rate:

2021 2022 2023
Revenue (M) $5,951 $10,968 $32,644
Interest Income (M) $138 n/a $145
Operating Margins 82% -39% 17%
Net Margins 31% -18% 20%
Net Income (M) $1,839 -$1,961 $6,509
Depreciation & Amort. (M) $27 $529 $803
Diluted Shares (M) 237 585 589
Earnings Per Share $7.32 -$3.43 $8.28
EPS Growth n/a -146.86% 341.4%
Avg. Price $56.15 $57.82 $114.67
P/E Ratio 7.67 -16.86 13.78
Free Cash Flow (M) $1,064 $3,789 $6,322
EV / EBITDA 3.17 -8.42 9.62
Total Debt (M) $3,134 $6,472 $8,092
Net Debt / EBITDA 0.45 0.67 -0.62

Apollo Global Management has generally positive cash flows, low leverage levels, and positive EPS growth. Furthermore, Apollo Global Management has decent operating margins with a negative growth trend.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.