How Should Investors Value Jabil After Its 3.8% Pullback and DCF Signals in 2025?

If you keep hearing about Jabil and wondering whether now is the right time to buy, hold, or move on, you are definitely not alone. Investors are still buzzing after Jabil’s stock climbed a remarkable 76.8% over the past year, and an astonishing 541.1% over the last five years. Yet, these high-flying numbers come with a story. Just in the past week, shares dipped by 3.8% before rebounding for a modest 3.8% gain over the last month. With a run like this, lots of folks are asking if Jabil’s growth is priced in or if the market is finally rethinking the company’s risk profile.

Market watchers attribute some of the long-term upside to Jabil’s flexibility in navigating supply chain pressures and broadening demand in electronics manufacturing. Still, the fresh dip reminds us that volatility can show up unexpectedly, even as the company pushes ahead in key markets. One thing is clear: people are looking at Jabil through a sharper lens now, especially when it comes to whether the stock is truly undervalued.

If you’re trying to figure out whether Jabil represents a bargain at current prices, the numbers give us a useful starting point. According to our valuation checklist, Jabil scores a 1 out of 6, a signal that only one traditional measure suggests the stock is underpriced. But that is just the tip of the iceberg. Up next, we will explore how these valuation checks work, and we will cover an even smarter way to cut through the noise and see the full picture of Jabil’s true value.

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

Approach 1: Jabil Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow (DCF) model estimates a company's underlying value by projecting all expected future free cash flows and then discounting those amounts back to today's dollars. In short, the DCF approach aims to cut through near-term market noise and focus on long-term business fundamentals.

For Jabil, the current Free Cash Flow stands at $911.76 Million, while analysts project steady growth over the coming years. By 2028, Free Cash Flow is forecast to climb to $1.51 Billion, indicating a notable upward trend. From 2026 through 2035, projections—driven by analysts in the near term and then extrapolated further—suggest a consistent increase and support the idea of a business steadily generating more cash.

Based on these cash flow projections, the estimated intrinsic value of Jabil stock is $264.04 per share. Given the DCF calculation, this figure points to the stock being 18.3% undervalued at today's share price. In other words, there is a meaningful gap between what Jabil might be worth and what the market is currently pricing in.

Result: UNDERVALUED

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

Our Discounted Cash Flow (DCF) analysis suggests Jabil is undervalued by 18.3%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

Approach 2: Jabil Price vs Earnings

When evaluating a profitable company like Jabil, the Price-to-Earnings (PE) ratio is a useful tool for investors. This ratio connects the company's share price to its per-share earnings, helping you determine how the market values each dollar of profit. Generally, a higher PE reflects optimism for future growth or a lower perception of risk. A lower PE signals either cautious growth expectations or higher business risk.

Currently, Jabil is trading at a PE of 35.3x. That is above the industry average of 23.9x for electronics companies and also higher than the peer average of 32.5x. On the surface, this might suggest Jabil is more expensive than its industry and peers. However, these benchmarks only tell part of the story, since they do not account for unique factors like Jabil’s growth profile, profit margins, or risk.

That is where Simply Wall St’s Fair Ratio comes in. The Fair Ratio, calculated at 33.8x for Jabil, incorporates not only earnings growth and market cap, but also profitability, risk, and sector insights. This offers a more tailored valuation perspective. Unlike simple comparisons to peers or industry averages, the Fair Ratio builds a complete picture by weighing all the drivers that should realistically influence the stock’s value.

With Jabil’s current PE of 35.3x only modestly above its Fair Ratio of 33.8x, the stock appears to be priced about right. This suggests the share price broadly reflects the company’s outlook and fundamentals.

Result: ABOUT RIGHT

PE 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 Jabil Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let's introduce you to Narratives. A Narrative is the story behind the numbers, your own perspective about a company’s future, connected to your forecasts for its revenue, earnings, profit margins, and ultimately, what you believe is a fair value for the stock.

Unlike static ratios or single-point estimates, a Narrative links the company’s unique journey to your outlook, allowing you to tie real business developments to your investment decisions. This approach is easy to use and accessible to everyone through Simply Wall St’s Community page, where millions of investors share, compare, and update Narratives in real time.

Narratives make buy or sell decisions clearer by showing you exactly how your fair value (based on your story and assumptions) compares to today’s price. Because they update automatically with new information like news or earnings reports, Narratives always reflect the latest picture, empowering you to stay decisive and confident no matter the market’s mood.

For example, some investors are most optimistic about Jabil, believing its India expansion and AI partnerships can push fair value as high as $256, while others see risks like tariff uncertainties and assign a fair value as low as $176. Your Narrative is truly your own, making investment both smarter and personal.

Do you think there's more to the story for Jabil? 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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