Does the Latest Real Estate Deal Mean JLL Shares Are Attractively Priced in 2025?

• Curious whether Jones Lang LaSalle could be a rare find in today's market? You are not alone in wondering if its current stock price truly reflects its value.
• The stock has moved up 22.4% year-to-date and 13.9% over the past year, despite a slight dip of 3.4% in the last week. This may hint at changing investor sentiment or market risk perceptions.
• Recent headlines highlight Jones Lang LaSalle’s strategic expansion and noteworthy real estate deals, while analysts continue to debate the long-term impact of these developments. These moves have sparked renewed interest and may be driving some of the stock’s recent performance.
• As we dive into the numbers, Jones Lang LaSalle’s current valuation score stands at 3 out of 6. This sets up an in-depth look at different ways to assess if it is undervalued and suggests there might be an even sharper way to judge what it is really worth by the end of this article.

Jones Lang LaSalle delivered 13.9% returns over the last year. See how this stacks up to the rest of the Real Estate industry.

Approach 1: Jones Lang LaSalle Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model provides a way to estimate a company’s intrinsic value by forecasting its future cash flows and discounting them back to today’s dollars. This approach attempts to predict what Jones Lang LaSalle could generate in free cash flow over the coming years and then adjusts those estimates for the time value of money.

According to the most recent data, Jones Lang LaSalle recorded Free Cash Flow (FCF) of $540.3 Million in the last twelve months. Analyst expectations put FCF at $834 Million by 2026 and $1.19 Billion by 2029, projecting steady growth over the next several years. Notably, for years beyond analyst coverage, additional projections are extrapolated to provide a longer-term outlook.

By discounting these cash flows to present value using the 2 Stage Free Cash Flow to Equity model, the DCF calculation suggests an intrinsic value of $403.35 per share for Jones Lang LaSalle. Compared to the current trading price, this implies the stock is undervalued by 24.4 percent and could have meaningful upside if these forecasts materialize.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Jones Lang LaSalle is undervalued by 24.4%. Track this in your watchlist or portfolio, or discover 843 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Jones Lang LaSalle.

Approach 2: Jones Lang LaSalle Price vs Earnings

The Price-to-Earnings (PE) ratio is often the preferred valuation metric for profitable companies like Jones Lang LaSalle because it directly links the company’s share price with its earnings power. This measure helps investors gauge how much they are paying for every dollar of earnings, which is especially meaningful when the company is consistently profitable.

Interpreting what makes a “normal” or "fair" PE ratio depends on several factors, including the company’s expected earnings growth rate and overall risk profile. If future growth is promising and risks are low, a higher PE may be justified. Conversely, slower growth or higher uncertainty can make a lower PE more appropriate.

Currently, Jones Lang LaSalle’s PE ratio stands at 25.6x. This is just above the real estate industry average of 25.3x and below the peer group’s average of 29.9x. However, rather than relying solely on these benchmarks, Simply Wall St calculates a Fair Ratio, which is a proprietary figure that weighs more nuanced factors like JLL’s expected earnings growth, profit margins, industry dynamics, and market size. For Jones Lang LaSalle, the Fair Ratio is 22.1x. This metric offers a more tailored reflection of what PE ratio the company truly deserves, providing a better context for investors than direct comparisons alone.

Since Jones Lang LaSalle’s current PE is a little above its Fair Ratio, it suggests that the stock is slightly overvalued relative to its fundamentals.

Result: OVERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1408 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Jones Lang LaSalle Narrative

Earlier we mentioned there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is your story behind the numbers, your perspective on a company like Jones Lang LaSalle, grounded in your own assumptions about future revenue, earnings, and profit margins, and what you believe the business can achieve.

Instead of just crunching data, a Narrative connects your understanding of JLL’s business environment, strategy, and risks to a full financial forecast and then directly to a Fair Value. With Narratives, you can make investing more accessible and personal, shaping your own view using Simply Wall St’s platform, where millions of investors collaborate via the Community page.

Narratives empower you to clearly compare your estimated Fair Value with the current Price, helping you see whether it’s time to buy, hold, or sell. They are constantly updated as new developments, news, and earnings reports come in, meaning your Narrative can adapt in real-time to what’s changing both in the company and the market.

For example, with Jones Lang LaSalle, one investor might see transformative growth ahead by highlighting technology investments and recurring revenue, and arrive at a Fair Value near $378. Another might focus on market risks and margin volatility, estimating value closer to $238. Narratives let you decide which story and valuation you believe best fits the facts.

Do you think there's more to the story for Jones Lang LaSalle? Head over to our Community to see what others are saying!

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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