Jabil (JBL): Revisiting Valuation After Expansion in India and Key Pharma Acquisition

Jabil (JBL) is making moves that could reshape its growth path. The company is expanding its photonics operation in Gujarat, India, and is also acquiring Pharmaceutics International, Inc. to tap into a large pharmaceutical market. These steps point to a clear revenue growth focus.

See our latest analysis for Jabil.

Jabil’s share price dipped 5% over the last week, reflecting recent volatility after its latest earnings and acquisition news. However, looking at a broader timeframe, the momentum is clear with a 43% year-to-date share price return and a 67% total shareholder return over the past 12 months. This trend becomes even more noticeable over multiple years, with total shareholder returns up 249% over three years and nearly 477% over five years, highlighting sustained value creation during a period of expansion and new market moves.

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With Jabil’s shares up impressively over multiple years, but recent sales headwinds and a 21% discount to analyst targets, the question stands: Is the stock undervalued at today’s prices, or is the market already pricing in its next phase of growth?

Most Popular Narrative: 17.2% Undervalued

Jabil's most widely followed narrative places fair value well above the latest closing price. This suggests meaningful upside based on future earnings projections and margin expansion potential.

Strong demand in AI-related markets, with expected revenue growth of 40% year on year, indicates significant potential to drive future revenue and improve operating margins through an expanded share of high-growth technology sectors.

Read the complete narrative.

Want to know what profit and revenue transformations drive this bold price target? The real story is in high-stakes forecasts: bigger margins, shrinking share count, and a growth formula that reimagines Jabil as a tech heavyweight. Curious which financial levers make this narrative stand out? You’ll have to dig into the full breakdown to get the numbers that matter most.

Result: Fair Value of $247.38 (UNDERVALUED)

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

However, continued weakness in renewable energy and challenges in inventory management could put pressure on Jabil’s profitability and test the strength of its growth story.

Find out about the key risks to this Jabil narrative.

Another View: Multiples Signal a Premium

While our DCF model points to Jabil trading below fair value, the picture shifts when we focus on the price-to-earnings ratio. Jabil's ratio of 33.4x is above the industry average of 25.5x, and only just below its peer average and our calculated fair ratio. This suggests investors are paying a premium for future growth, which raises the stakes if expectations are not met. Does this premium reflect robust opportunity, or could it mean valuation risk ahead?

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

Build Your Own Jabil Narrative

If you'd rather draw your own conclusions from the numbers, you can take a fresh look at the data and build a unique view in just minutes: Do it your way.

A great starting point for your Jabil research is our analysis highlighting 3 key rewards and 4 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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