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PJT Partners (PJT) is back on many investors’ screens after a mixed stretch, with the stock showing a 0.5% decline over the past day and a 1.2% gain over the past week.
Those shorter term moves sit alongside a 12% decline over the past month and a 22.4% decline over the past 3 months, set against a three year total return of 86.2% and a five year total return of 112.4%.
See our latest analysis for PJT Partners.
At a share price of US$133.06, PJT Partners has seen short term share price pressure, with its 30 day and 90 day share price returns both in decline. At the same time, the 3 year and 5 year total shareholder returns remain strongly positive, suggesting recent momentum is fading compared with its longer history.
If PJT’s recent pullback has you reassessing your watchlist, this can be a good moment to see what else is moving and uncover 20 top founder-led companies
With PJT Partners trading at US$133.06 after recent share price pressure but with longer term returns still positive, the key question now is simple: is the stock being overlooked, or is the market already pricing in its future growth?
PJT Partners is trading on a P/E of 17.9x, slightly below the US market at 18.4x and below both its peer group at 18.6x and the broader US Capital Markets industry at 29.6x.
The P/E ratio compares the current share price to earnings per share. It gives a quick view of how much investors are paying for each dollar of earnings. For an advisory focused investment bank like PJT, where earnings can be sensitive to deal activity, the P/E is a common way investors frame expectations around profitability.
Here, the current P/E sits under peer and industry averages while the company has delivered 34% earnings growth over the past year, ahead of its 5 year average of 8.1% a year and ahead of the Capital Markets industry at 15.8%. That combination of above industry earnings growth and a lower than industry P/E indicates the market is not placing a premium on recent performance.
Compared with the much higher P/E across the US Capital Markets industry, PJT’s 17.9x multiple appears conservative, particularly given its reported earnings and a return on equity of 30.7% that is considered high. On a simple relative basis, the stock screens as cheaper than many industry peers on earnings.
See what the numbers say about this price — find out in our valuation breakdown.
