Morgan Stanley | ®esearcs NORTH AMERICA INSIGHT
Brokers & Asset Managers Comps Sheet
Exhibit 50: Brokers & Asset Managers Comps Sheet
Brokers & Asset Managers 26/Jan/18 EPS As % Dividend Earnings Per Share (EPS) © CAGR (%) Price/Earnings (P/E) EV/ EBITDA of AuM Yield (%) LTM Net Price Price Market Cap Flows/BoP YTD Stock Company Ticker Rating 26/Jan/18 Target Upside (%) Shares (M) ($B) AUM ($B) — AuM (%) Perf. (%) 2017E 2018E 2019E 17-19 2017E 2018E 2019E 2018E 2019E 2017E 2018E 2019E Mkt Cap 2018E
Covered Brokers & Asset Managers
Franklin Resources (5) BEN UW $45.86 $42 555 2 753 BlackRock Inc BLK Ow $586.80 $660 12.5 162 94.8 5,977 14.2 14.5x 13.4x 1.6 Hamilton Lane HLNE EW $38.85 $38 (2.2) 53 2.1 29 9.8 19.2x 15.5x 71 2.0 Invesco Ltd IVZ EW $38.40 $39 1.6 407 15.6 917 1.2 5.1 9.1x 8.6x 17 3.3 a) Janus Henderson Group JHG OW $41.43 $50 214 198 8.2 361 (2.9) 8.3 10.0x 9.0x 2.3 3.4 © Legg Mason (5) LM uw $45.75 $43 (6.0) 92 42 754 (3.0) 9.0 9.5x 9.8x 0.6 24 & OM Asset Mgmt. (4) OMAM EW $18.31 $19 3.8 110 2.0 236 (0.3) 9.3 7.6x 7.2% 0.9 2.2 & T. Rowe Price TROW, EW $119.99 $115 (4.2) 244 29.3 948 0.7 14.4 10.7x 10.9x 3.1 19 a Virtus Investment Partners VRTS EW $131.00 $127 (3.1) 7 0.9 91 0.4 13.9 71x 6.6x 1.0 15 Waddell & Reed Financial WDR UW $22.98 $20 (13.0) 83 19 81 (15.3) 2.9 7.0x 7.9x 24 44 WisdomTree Investments WETF EW $12.33 $14 13.5 137 17 46 Mean (Excl. HLNE, JHG, WETF), (Market Cap, EV and AuM equals Total) (2.1) 176.0 9,804 Median (Excl. HLNE, JHG, WETF) (3.6) Apollo Global Mgmt APO Ow $36.42 $42 403 14.7 242 Ares Mgmt. ARES EW $24.70 $20 216 5.3 106 3 Blackstone Group BX OW $40 1,199 387 a Carlyle Group CG OW $33 343 174 s KKR & Co KKR EW $24 848 153 Oaktree Capital Group (2) OAK ow $45.20 $60 156 100 Mean (Covered Alts), (Market Cap, EV and AuM equals Total) 100.6 1,162 Median (Covered Alts) TD Ameritrade Holding Corp AMTD EW $54.97 $61 11.0 567 31.2 1,119 E*TRADE Financial Corp ETFC OW $53.49 $66 23.4 271 14.5 365 § LPL Financial Holdings Inc LPLA EW $60.76 $62 2.0 90 5.5 560 é Charles Schwab Corp SCHW OW $54.27 $63 16.1 1,340 20 3,181 Mean (Market Cap, EV and AuM equals Total) 13.1 123.8 5,225 Median 13.5 Covered Brokers & Asset Managers Mean (Excl. WETF and HLNE), (Market Cap, EV and AuM equals Total) 5.6 398.8 16,144 3.4 10.2 12.6 15.8x 13.8x 13.0x 14.6x 13.6x 11.2x 10.2x 9.5x 4.0 3.3 Median (Excl. WETF and HLNE) 2.9 2.2 8.9 10.2 14.1x 12.9x 12.4x 12.8x 12.9x 10.7x 9.9x 9.4x 2.9 cosh Non-Covered Brokers & Asset Managers SS ee AllianceBernstein AB NC $27.85 NC NC 94 2.6 535 1.8 11.2 2.11 2.38 2.64 12.0 13.2x 11.7x 10.5x n/a n/a 3.7x 3.3x 3.1x 0.5 8.5 Affiliated Managers Group AMG NC $215.76 NC NC 56 12.0 804 (0.1) 5.1 14.49 17.39 18.81 13.9 14.9x 12.4x 11.5x n/a n/a 14.4x 13.0x 11.9x 15 0.5 z Eaton Vance (5) EV NC $60.87 NC NC 118 7.2 422 11.2 7.9 2.61 3.36 3.79 20.6 23.3x 18.1x 16.1x n/a n/a 14.4x 12.3x n/a 17 2.2 3 Fortress Investment Group FIG NC N/A NC NC 240 n/a 0 (0.9) n/a 0.06 0.07 0.08 20.7 n/a n/a n/a n/a n/a 4.5x 3.7x 3.0x n/a n/a q QcheZiffCapital Mgmt OZM_ NC $2.38 NCC 8588) 2 Stifel Financial Corp__st__NC___$6636_ NCC AS 65a =a 321 L__ 5.40296 207K 1x 123K inva eG 403K AT
Raymond James Financial, Inc. RJF NC $98.26 NC NC 145 14.3 664 n/a 10.0 5.47 6.90 714 18.9 18.0x 14.2x 12.7x n/a n/a 28.2x 25.1x n/a 2.2 11
Interactive Brokers Group, Inc. IBKR NC $64.20 NC NC 71 46 97 n/a 8.4 1.22 2.04 2.34 38.4 52.6x 31.4x 27.5x n/a n/a 6.4x 47x 4.0x 47 0.6
S&P 500 (3) 2,872.9 2,750 (4.3) 75 131.60 145.00 150.00 6.8 21.8x 19.8x 19.2x 19.0x 18.3x 2.2
Source: Company data, Thomson Reuters, Morgan Stanley Research estimates, except for NC (not covered), which are Thomson Reuters estimates
(1) Alternative asset manager net flows include fee-paying fundraising and inflows net of redemptions and distributions.
(2) OAK estimates reflect Adjusted Net Income (ANI), given that is the primary metric reported by the company.
(3) S&P500 EPS based off of MS Equity Strategy Team's estimates
(4) ENI/Unit represents EPS and P/ENI represents P/E
(5) BEN, LM and EV have fiscal years not ending in December, so for these companies CY estimates were used in order to have temporal consistency. BEN and LM reflect MS estimates; EV reflects consensus Thom son estimates.
Source: Company Data, Thompson Reuters, Morgan Stanley Research estimates, except for non-covered companies (NC), which are consensus estimates
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