capital return needs to adjust for separation costs.Once...

capital return needs to adjust for separation costs.
Once separation occurs, PPT will also loose cross connectivity from the corporate trust and wealth management divisions feeding funds into the funds management division.

Stand Alone Funds Management division is expected to incur reduced profit into the future (hence why the market is really punishing the stock, yes it will be debt free, but their sole remaining division: Funds Management will have lower future EBIT going foward).

Valuation models when future EBIT is reducing result in low asset valuation prices.


Current EBITDA split:
59% Funds Management
17% Wealth Management
24% Corporate Trust

But PPT flogging off Wealth Management and Corporate Trust to KKR.
This leaves just Funds Management: The weakest division.

Funds Management Business EBIT forecast to decline because of margin compression and anticipated ongoing net outflows from funds.

Hence PPT share holders, post KKR deal, left with a debt free donkey.

The market doesn't value on the past or the current, the market values on the future. Without corporate trust and wealth management, PPT future earnings are in decline.

Hence the multiple the market is prepared to pay is declining.

And all this in a macro bull market, wait for a sustained bear market, PPT multiple post KKR acquisition, will be trashed even further.