CG Stock Analysis — The Carlyle Group
Sector: Financials
AI Verdict
CG trades at 10.6x next year's earnings while analysts expect EPS to more than double, making it cheap for the growth you're getting if Carlyle's client stickiness and deal pipeline hold up.
Competitive Moat
Carlyle Group is a global alternative asset manager with deep institutional relationships and long-duration capital commitments, which create high switching costs for clients. Its scale and brand recognition in private equity and credit give it privileged access to deals and capital flows that smaller rivals can't easily replicate.
Summary
Carlyle is trading at a steep discount to expected earnings growth after a year of revenue contraction.
Where It Stands
CG trades at 10.6x forward earnings versus the financial sector median of 14x, with analysts forecasting 113.7% EPS growth and trailing revenue down -11.9%.
Key Metrics
- Trailing P/E: 22.7x
- Forward P/E: 10.6x
- PEG Ratio: 0.20
- Earnings Growth: +1.1%
- Revenue Growth: -0.1%
- Dividend Yield: 0.03%
- 52-Week High: $69.85
- 52-Week Low: $39.48
Analyst Consensus
17 Buy · 6 Hold · 1 Sell (24 analysts)
Bull Case
With forward EPS expected to more than double (+113.7%) and a forward P/E of just 10.6x, the stock is cheap for the growth on offer if those earnings materialize.
Bear Case
If the forward P/E re-rates back to the sector median of 14x but earnings disappoint, the stock could see a sharp correction given the -11.9% revenue contraction.
Catalyst to Watch
Watch for the next quarterly earnings report to confirm whether the forecasted EPS growth is actually materializing.