A Fresh Look at JLL (JLL) Valuation Following Major WestJet Facilities Management Win

Jones Lang LaSalle (JLL) has been selected by WestJet to manage facilities across the airline’s 1.9-million-square-foot Canadian portfolio, including headquarters and airports. This new partnership marks a meaningful step in JLL’s strategic focus on growth through large scale outsourcing contracts.

See our latest analysis for Jones Lang LaSalle.

JLL’s freshly announced WestJet partnership crowns a stretch of upbeat news, including high-profile executive hires and leadership presentations at industry conferences. This signals continued momentum for the business. The 1-year total shareholder return stands at 12.1%, reflecting stable long-term growth and a steady appetite for scaled outsourcing in real estate services.

If big contracts like WestJet’s have you scanning the horizon for other market leaders, now is a prime moment to discover fast growing stocks with high insider ownership.

Yet with shares currently trading 15% below analyst price targets and long-term returns outpacing peers, investors are left to wonder: Is JLL still undervalued, or is the market already pricing in its future growth?

Most Popular Narrative: 13.1% Undervalued

The most-followed valuation narrative views Jones Lang LaSalle's fair value at $335, a notable premium to its last close at $291.06. Analysts are focused on growth tailwinds and evolving profit drivers, hinting at a bullish outlook that goes beyond current pricing.

Accelerating client demand for integrated, sustainable, and energy-efficient real estate solutions is leading to strong activity in Project Management and Leasing. Tenants are prioritizing scarce high-quality assets, positioning JLL to capture higher advisory fees and margin growth.

Read the complete narrative.

Want to unlock the secret mix powering this valuation? Discover which future earnings and margin expectations anchor these bold analyst targets. Find out why Wall Street believes JLL is positioned for outperformance in the evolving real estate landscape.

Result: Fair Value of $335 (UNDERVALUED)

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

However, JLL’s exposure to slowing transactional markets and ongoing office leasing headwinds could disrupt these optimistic growth and margin forecasts.

Find out about the key risks to this Jones Lang LaSalle narrative.

Another View: Market Multiples Deliver a Mixed Signal

Looking at valuation through the lens of price-to-earnings, JLL’s ratio of 24.5x is just above the US real estate industry average of 24.2x and notably lower than its direct peers at 35.3x. However, this stands higher than the fair ratio of 22.9x, implying that while JLL may appear less expensive than some peers, it is not outright cheap from this perspective. Could multiple expansion or mean reversion influence the next move?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Jones Lang LaSalle Narrative

If you see JLL’s story differently or want to dive deeper into the data behind the headlines, you can craft your own investment case in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Jones Lang LaSalle.

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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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