Lazard (LAZ): Exploring Valuation After Q3 Earnings Decline, Dividend Reaffirmation, and European Expansion Steps

Lazard (NYSE:LAZ) just released its third quarter 2025 earnings, showing a dip in both revenue and net income compared to last year. The results reveal muted Financial Advisory performance. At the same time, the company affirmed its dividend and continued buybacks.

See our latest analysis for Lazard.

After announcing softer Q3 results and ongoing buybacks, Lazard’s share price slipped further, now down 9.2% over the last month and 3.4% year-to-date. Still, long-term investors have seen a total shareholder return of nearly 75% over five years. This signals that the firm’s value creation story remains intact even as near-term momentum fades.

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With shares now trading at a notable discount to analyst targets and five-year returns still strong, the central question remains: Is Lazard undervalued after recent declines, or is the market fully factoring in its future prospects?

Most Popular Narrative: 15.7% Undervalued

Lazard’s last close of $49.01 stands notably lower than the narrative’s implied fair value. This creates a gap that raises questions about what is being overlooked or anticipated in current market pricing.

Efforts in advisory services and ETF offerings could elevate expenses, impacting net margins and short-term earnings before yielding growth.

Read the complete narrative.

The fair value calculation revolves around bold expectations for revenue gains, profit margin expansion, and a reset in valuation multiples. Which specific financial inflection points underpin this price target? See what's fueling the optimism; some projections will surprise even experienced investors.

Result: Fair Value of $58.17 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, a rebound in Lazard’s advisory backlog or positive asset management inflows could boost revenues, which would challenge the current undervalued view.

Find out about the key risks to this Lazard narrative.

Build Your Own Lazard Narrative

If you want to challenge these conclusions or have your own perspective, you're just a few minutes away from exploring the data yourself and shaping your own story. Do it your way.

A great starting point for your Lazard research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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