KKR (KKR) Valuation Check As Flagship Americas Buyout Fund Nears Record Hard Cap

KKR (KKR) is back in focus after reports that it is on track to exceed a $20b target for its Americas buyout fund, with investors committing enough capital to approach a record hard cap. See our latest analysis for KKR. Despite the fundraising headlines, KKR’s recent trading has been softer. The 7 day share price return is 7.74% and the 30 day share price return is 7.29% from the latest close of $121.25. The 1 year total shareholder return of 26.33% contrasts with a much stronger 3 year and 5 year total shareholder return of 123.57% and 225.30% respectively, suggesting longer term holders have seen substantial gains even as near term momentum has cooled. If KKR’s latest fundraise has you thinking about where capital is flowing next, it could be a good moment to broaden your radar with fast growing stocks with high insider ownership. With KKR’s shares softer over 1 year but still showing very strong 3 and 5 year total returns, and with fresh fundraising momentum in its flagship buyout fund, is today’s price a reset worth considering, or is the market already pricing in future growth? Most Popular Narrative: 22.8% Undervalued KKR's most followed narrative pegs fair value at $157.10 versus the last close of $121.25, which puts a spotlight on the earnings engine behind that gap. Expansion of credit and asset-based finance platforms, with KKR now a leader in a $6 trillion+ market poised for further growth, provides a broader and more durable base of fee-related earnings while also increasing the potential for performance fees as these businesses scale. This diversification reduces earnings volatility and supports long-term earnings growth. Read the complete narrative. Curious what earnings path could back up that higher value, especially with revenue expected to trend lower while margins and profit growth move sharply the other way? At the core of this narrative are two moving parts that pull in opposite directions: a modeled revenue decline over several years and a steep ramp in earnings powered by much higher margins and a richer fee mix. The fair value also leans on a future valuation multiple that remains above the broader capital markets group, along with assumptions about how quickly embedded gains can be turned into realized income, all filtered through a 9.31% discount rate. Result: Fair Value of $157.10 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, that upside story depends on continued fundraising strength and stable credit conditions, and both could be tested if competition tightens or credit performance worries resurface. Find out about the key risks to this KKR narrative. Another Angle On Value Those fair value models point to upside, but on plain P/E KKR looks expensive. The shares trade on 47.6x earnings versus 24.8x for the US Capital Markets group and a fair ratio of 26.1x. This suggests that a lot of good news is already in the price. See what the numbers say about this price — find out in our valuation breakdown. NYSE:KKR P/E Ratio as at Jan 2026 Build Your Own KKR Narrative If you see the data differently or prefer to test your own assumptions, you can pull the numbers together and build a custom story in minutes: Do it your way. A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding KKR. Looking for more investment ideas? If KKR has sharpened your interest in where capital goes next, do not stop here. Broaden your watchlist now with a few targeted stock idea lists. Spot potential turnarounds by scanning these 3523 penny stocks with strong financials that already back their stories with stronger financials than many expect. Consider developments in automation by checking out these 109 healthcare AI stocks that highlight how data and diagnostics come together in listed companies. Stay informed on digital finance trends by reviewing these 18 cryptocurrency and blockchain stocks that are tied to cryptocurrency and blockchain themes rather than tokens alone. 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.