• Wondering whether Lazard at around US$48.06 is genuinely good value or just feels that way after a strong run? This article breaks down what the current price might imply.
• The stock has moved 5.9% over the last week and 1.6% over the last month, while year to date it is down 3.4% and sits on a 12.2% return over the past year, with a 91.0% return over three years and 27.1% over five years.
• These returns sit against a backdrop of ongoing headlines around Lazard's role as a global financial adviser and asset manager, which often influence how investors think about its earnings power and fee resilience. Even when news flow feels routine, it can still shape expectations around deal activity, fund flows and the type of market cycles where the company may be busier or quieter.
• On Simply Wall St's valuation checks, Lazard earns a value score of 5 out of 6. That sets up a closer look at DCF, multiples and other methods later in this article, along with a final section that offers an even broader way to think about what the stock might be worth.

Approach 1: Lazard Excess Returns Analysis

The Excess Returns model looks at how much profit a company can generate over and above the return that shareholders require, then capitalises those excess profits into a per share value today.

For Lazard, the model uses a Book Value of $8.95 per share and a Stable EPS of $5.28 per share, based on the median return on equity from the past 5 years. With a Cost of Equity of $1.32 per share, the estimated Excess Return is $3.95 per share. That implies an Average Return on Equity of 35.00%, supported by a Stable Book Value assumption of $15.08 per share, drawn from weighted future book value estimates from 3 analysts.

Using these inputs, the Excess Returns model arrives at an intrinsic value of about $90.58 per share. Compared with the current share price of around $48.06, this framework implies the stock trades at roughly a 46.9% discount, which in this method indicates Lazard is materially undervalued on this basis.

Result: UNDERVALUED

Our Excess Returns analysis suggests Lazard is undervalued by 46.9%. Track this in your watchlist or portfolio, or discover 48 more high quality undervalued stocks.

Approach 2: Lazard Price vs Earnings

For a profitable company like Lazard, the P/E ratio is a useful shorthand for how much investors are currently paying for each dollar of earnings. It ties the share price directly to the company’s profit, which is usually the core driver of long term value.

What counts as a “normal” P/E depends on how the market views a company’s growth potential and risk. Higher expected growth and lower perceived risk can justify a higher multiple. Slower growth or higher uncertainty can pull it down.

Lazard trades on a P/E of 17.53x. That sits below the Capital Markets industry average P/E of 40.13x and below the peer average of 23.63x. Simply Wall St’s Fair Ratio for Lazard is 19.62x. This proprietary measure estimates the P/E you might expect for the stock after adjusting for factors such as its earnings profile, industry, profit margins, market cap and risk characteristics, rather than relying only on broad peer or industry comparisons.

On this Fair Ratio basis, Lazard’s current P/E is lower than the 19.62x level implied by these characteristics. This points to the stock being undervalued on this metric.

Result: UNDERVALUED

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Upgrade Your Decision Making: Choose your Lazard Narrative

Earlier it was mentioned that there is an even better way to understand valuation, so Narratives are introduced here as a simple way for you to attach a clear story about Lazard to hard numbers like fair value, future revenue, earnings and margins, then see how that story stacks up against the current share price.

A Narrative on Simply Wall St is your view of what is happening at a company, linked directly to a financial forecast and a fair value, so instead of only looking at a P/E or a price chart, you connect Lazard’s expansion plans, cost pressures or buybacks to specific assumptions about its future cash flows and profit profile.

These Narratives are available on Simply Wall St’s Community page and are designed to be easy to use, so you can compare your own fair value to the current price and quickly see whether your story about Lazard suggests it is trading above or below what you think it is worth, without needing to build a model from scratch.

They also update when new information comes in, such as earnings or news around share repurchases or management changes. This means your Lazard view can stay aligned with the latest data rather than becoming stale or disconnected from events.

For Lazard today, one investor might build a more optimistic Narrative that leans toward the US$63.00 fair value view, while another could anchor on a more cautious Narrative closer to US$47.00. The Community page allows you to see and compare these different perspectives side by side so you can decide which story feels closest to your own expectations before making any buy or sell decision.

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