The Carlyle Group Inc. (CG)
Valuation Overview•Is The Carlyle Group Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 48/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven by a balanced mix of reliable dividends and share buybacks.
CG demonstrates adequate business quality with stable profitability. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company maintains stable top-line performance however, earnings have severely contracted over the same period. The company maintains healthy operational efficiency with a 22.2% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $189.6M | +19.8% | — | — | +3.8% | |
| EBITDA | -$124.5M | — | -8.1% | — | — | |
| Net Income | -$132.2M | -20.7% | -12.9% | — | — | |
| EPS (Diluted) | $-0.37 | -21.3% | -13.3% | +17.6% | — | |
| Free Cash Flow | $6.8M | +262.9% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 73.1% | 73.4% | 81.3% | 83.8% |
| Operating Margin | 22.2% | 9.4% | 28.0% | 27.0% |
| Net Margin | 13.7% | 3.0% | 18.7% | 13.7% |
| FCF Margin | -33.9% | 4.9% | 6.7% | -0.3% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.93 | $0.89 | -4.5% | ||
| Q1'26 | $1.00 | $1.01 | +1.4% | ||
| Q4'25 | $1.02 | $0.98 | -3.9% | ||
| Q3'25 | $0.89 | $0.91 | +2.5% | ||
| Q2'25 | $0.95 | $1.14 | +19.4% | ||
| Q1'25 | $1.04 | $0.92 | -11.5% | ||
| Q1'25 | $0.95 | $0.92 | -3.1% | ||
| Q4'24 | $0.88 | $0.95 | +7.5% |
Total return is -1.8% (1Y), lagging the benchmark by -26.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -25.2% | -34.5% | — |
| 1Y | -1.8% | -26.8% | +3.0% |
| 3YCAGR | +16.0% | -2.8% | +13.4% |
| 5YCAGR | +3.1% | -9.3% | +15.0% |
| 10YCAGR | +13.9% | +0.3% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about The Carlyle Group Inc. (CG) valuation, health, and returns.
The Carlyle Group Inc. is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. trading near fair value (DCF: $41.30)
The Carlyle Group Inc. has multiple valuation anchors: DCF Intrinsic Value: $41.30 | Peer Relative Fair Value: $60.71 | Wall Street Analyst Target: $61.00 (implying +36.2% upside). A convergence of these signals offers higher conviction.
The Carlyle Group Inc. displays fair financial health with a composite quality score of 48/100, supported by a Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of 5.2%.
The Carlyle Group Inc. pays a 3.0% dividend yield, covered by a 62% payout ratio with 0 years of growth, supplemented by a 4.2% buyback yield.
The Carlyle Group Inc.'s current growth trajectory is Accelerating. The company achieved +19.8% 1Y revenue growth and -21.3% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Buy based on 25 analysts, beating EPS expectations in 58% of recent quarters with a -1-quarter streak. The consensus price target represents a +36.2% change from current levels.
Investment risks for The Carlyle Group Inc. include: -39.1% 1-year max drawdown, high beta (1.62x market volatility). Volatility risk is characterized by a beta of 1.62x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.