What Do Recent Losses Mean for Marcus & Millichap Stock in 2025?

If you’ve been wondering whether now is the right time to buy, sell, or just keep an eye on Marcus & Millichap stock, you’re not alone. The real estate services company has had a bumpy ride recently, and investors are looking for direction. After closing at $28.89, Marcus & Millichap has moved down 2.4% in the past week, dropping 12.8% over the last month, and showing a year-to-date loss of 22.8%. Even over the past twelve months, shares are down 18.1%, although the five-year story is just barely in the green at 1.4%.

Some of these losses can be chalked up to broader uncertainty in the commercial real estate market, as changing interest rates and shifting economic expectations have made investors more cautious in recent months. The fact that Marcus & Millichap’s value score is just 1 out of 6 right now hints that there may be room for caution or a potential hidden value, depending on how you look at it.

To help you make sense of whether the current price is an opportunity or a warning sign, let’s break down the numbers using several established valuation methods. Of course, we’ll also reveal an even more insightful approach to understanding the company’s long-term prospects at the end of the article.

Marcus & Millichap scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Marcus & Millichap Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow (DCF) model estimates a company’s intrinsic value by projecting its future cash flows and discounting them back to today’s dollars. This approach helps investors determine what a business is truly worth, regardless of market mood swings.

Based on the 2 Stage Free Cash Flow to Equity model, Marcus & Millichap’s most recent annual Free Cash Flow stood at $31.3 Million. Analyst forecasts indicate that annual FCF may dip to $22.5 Million by 2026. Beyond five years, projections are extrapolated, showing only modest growth each year through 2035, according to Simply Wall St data.

Using these cash flow projections, the DCF model produces an estimated intrinsic value of just $9.56 per share. When compared to the recent close at $28.89, this implies that Marcus & Millichap is currently trading at a significant premium, about 202.3% above its calculated fair value.

Result: OVERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Marcus & Millichap.

Our Discounted Cash Flow (DCF) analysis suggests Marcus & Millichap may be overvalued by 202.3%. Find undervalued stocks or create your own screener to find better value opportunities.

Approach 2: Marcus & Millichap Price vs Sales

The Price-to-Sales (P/S) ratio is often used as a valuation tool for companies where earnings may be volatile or temporarily pressured, as it looks past swings in profits to assess the value investors place on each dollar of revenue. Since Marcus & Millichap’s current earnings are negative, but it continues to generate significant revenue, P/S offers a clearer lens for comparison.

A “normal” or fair P/S ratio depends on investor expectations of future growth and risks. Generally, higher-growth companies or those with more stable cash flows can justify higher P/S multiples, while those facing uncertainties or slowdowns warrant lower marks.

Currently, Marcus & Millichap trades at a P/S ratio of 1.55x. This is four times greater than its peer average at 0.39x, though still below the Real Estate industry average of 2.91x. To refine these benchmarks, Simply Wall St calculates a proprietary Fair Ratio at 1.00x by considering Marcus & Millichap’s growth outlook, profit margins, industry dynamics, and market capitalization.

Unlike simple industry or peer comparisons, the Fair Ratio is more tailored. It factors in not just broad real estate sector averages, but the company’s unique risks, expected rebound, and profitability, giving a much more precise assessment than a “one size fits all” approach.

Comparing Marcus & Millichap’s actual P/S of 1.55x to its Fair Ratio of 1.00x suggests that the current stock price reflects a premium above what is justified by its fundamentals. Although it is not drastically expensive, the numbers point to a market valuation that is a little stretched.

Result: OVERVALUED

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

Upgrade Your Decision Making: Choose your Marcus & Millichap Narrative

Earlier, we mentioned that there is an even better way to understand valuation, so let's introduce you to Narratives. A Narrative is a big-picture story that captures your perspective on a company’s future, combining your beliefs about how Marcus & Millichap will grow, improve margins, and overcome risks, with specific numbers for future revenue, profit, and fair value.

Essentially, Narratives help connect the dots between the company’s current story, a real-world financial forecast, and a calculated fair value. This makes investment decisions more personal and logical, helping you see if you believe the numbers add up.

On Simply Wall St, Narratives are easy and approachable: millions of investors use them on the Community page to explore different viewpoints, compare Fair Value to the current share price, and see which stories might be most likely to play out. Narratives automatically update as new information comes in, so your outlook evolves alongside the business.

For example, some investors are optimistic and believe Marcus & Millichap’s revenue, margins, and technology investments will deliver a fair value as high as $30.00 per share. Others are more cautious, highlighting commission headwinds and sector risks, and see fair value far lower.

Do you think there's more to the story for Marcus & Millichap? Create your own Narrative to let the Community know!

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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