How the LA28 partnership puts Korn Ferry’s core business in the spotlight

Korn Ferry (KFY) has taken on a high profile role as the Official Talent & Organizational Consulting Partner for the LA28 Olympic and Paralympic Games. This contract directly reflects its core human capital strengths.

The firm is working with LA28 to help hire, onboard, and develop a workforce of nearly 5,000 people for the Games, while also supporting Team USA. For shareholders, the interest is less about short term headlines and more about how this type of engagement lines up with Korn Ferry’s existing consulting, digital, and talent platforms.

At a share price of US$68.11, Korn Ferry has logged a 90 day share price return of 5.6%, while its 1 year total shareholder return of 4.5% and 3 year total shareholder return of 30.3% point to steady but measured momentum.

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With Korn Ferry trading at US$68.11 and data pointing to both an implied discount to some analyst targets and a large gap to certain intrinsic estimates, you have to ask: is there real value here, or is the market already baking in future growth?

Most Popular Narrative: 15.1% Undervalued

The most followed narrative puts Korn Ferry’s fair value at $80.25, above the last close of $68.11, and builds that gap on specific revenue and margin assumptions.

Korn Ferry is experiencing growth in new business, particularly in the Americas and EMEA regions, along with an increase in cross-solution referrals, suggesting potential for revenue growth and a positive impact on earnings.

Curious what sits behind that $80.25 figure? The narrative leans on steady top line expansion, firmer margins and a future earnings multiple that stays below many peers. The exact mix of growth, profitability and discount rate inputs might surprise you.

Result: Fair Value of $80.25 (UNDERVALUED)

However, there is still the chance that a tougher consulting backdrop or slower conversion of large engagements into revenue could leave those fair value assumptions looking optimistic.

Build Your Own Korn Ferry Narrative

If you see the story playing out differently, or just prefer to test the assumptions yourself, you can build a custom view in minutes with Do it your way.

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Korn Ferry.

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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.