Black Stone Minerals, L.P. (BSM) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+145.4%

$36.16

vs $14.74 price

Levered DCF

$36.41

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

8.64

Safe zone

Rating

A+

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	10.38×	12.7×	8.36×	7.74×	13.42×	13.63×	12.59×	11.38×
P/B	2.5×	2.72×	2.75×	2.92×	2.02×	1.3×	2.39×	2.8×
P/S	6.66×	7×	6.69×	4.5×	4.25×	4.65×	5.32×	5.53×
EV / EBITDA	8.58×	9.69×	6.97×	6.67×	8.97×	7×	8.7×	8.6×
Gross margin	74.9%	76.2%	77.2%	83.9%	75.5%	53.0%	61.9%	66.3%
Operating margin	61.8%	62.2%	84.5%	61.5%	37.0%	44.5%	47.7%	52.2%
Net margin	71.0%	61.7%	84.3%	60.8%	36.0%	41.1%	43.5%	48.5%
Current ratio	3.88×	2.58×	7.48×	5.64×	1.4×	1.67×	3.43×	2.43×
Debt / equity	0.14×	0.02×	0×	0.01×	0.08×	0.11×	0.36×	0.34×
Interest coverage	29.21×	87.84×	153.81×	76.76×	33.23×	12.69×	10.97×	15.34×
Dividend yield	11.2%	11.9%	12.5%	9.7%	9.2%	11.7%	12.5%	8.0%
Payout ratio	105.1%	134.5%	99.4%	72.1%	108.8%	132.4%	153.2%	90.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	26.7%	24.0%	34.7%	39.4%	17.1%	11.5%	19.5%	24.6%
Return on invested capital	19.9%	23.0%	34.1%	38.9%	16.0%	11.0%	15.5%	18.9%
Return on assets	22.5%	22.3%	33.4%	37.5%	14.6%	9.8%	13.9%	16.9%
Free cash flow yield	10.6%	12.5%	15.0%	11.7%	11.3%	20.1%	11.5%	2.6%
Earnings yield	10.7%	8.8%	12.6%	13.5%	8.5%	8.8%	8.2%	8.8%
Enterprise value	$3B	$3.1B	$3.3B	$3.5B	$2.2B	$1.5B	$3B	$3.8B
Net debt / EBITDA	0.44×	0.07×	-0.15×	0.01×	0.32×	0.56×	1.12×	0.92×
Cash conversion cycle (days)	47	38	40	134	53	67	48	60