Carlyle Group soars 63% following InvestingPro’s April Fair Value signal

InvestingPro’s Fair Value analysis demonstrated its precision in April 2025 when it identified The Carlyle Group (NASDAQ:CG) as significantly undervalued at $36.59. This analytical framework, which combines multiple valuation methodologies to determine a stock’s intrinsic value, proved remarkably accurate as the stock surged to $58.71, delivering a 63% return in just over three months. Investors seeking similar opportunities can explore current undervalued stocks on our Most undervalued list.

The Carlyle Group, a global investment firm managing $376 billion in assets, showed strong fundamentals when InvestingPro’s models flagged the opportunity. Despite the company’s impressive 127% revenue growth and healthy 20% return on equity, the stock had experienced volatility in the preceding months, creating an attractive entry point for investors.

When InvestingPro’s Fair Value model identified CG as undervalued, the stock was trading significantly below its intrinsic value, with an estimated upside of 48.4%. The subsequent performance validated this analysis, as the stock not only reached but exceeded the initial target. The company’s strong fundraising momentum, diversified portfolio, and expansion into private wealth management contributed to this remarkable appreciation.

Recent developments have further supported the stock’s trajectory. Citi Research issued a Buy rating with a $65 price target in July 2025, while the company announced a significant $2 billion partnership with Diversified Energy. Additionally, Carlyle’s recent earnings beat triggered a 5% surge in share price, demonstrating the company’s operational strength.

InvestingPro’s Fair Value methodology combines multiple valuation approaches, including discounted cash flow analysis, comparable company metrics, and market sentiment indicators. This comprehensive approach helps investors identify opportunities where market prices diverge significantly from fundamental value, as demonstrated in this Carlyle Group case study.

The success of this Fair Value signal exemplifies the power of data-driven investment analysis. For investors seeking to uncover similar opportunities, InvestingPro offers advanced valuation tools, real-time alerts, and comprehensive financial analysis to help make informed investment decisions. With new opportunities constantly emerging in the market, InvestingPro’s systematic approach to valuation continues to help investors identify promising investment opportunities before the broader market recognizes them.