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PJT Partners (PJT) Could Be 12% Below Fair Value On A 23.4x P\E

Simply Wall St · 2d ago

How PJT Partners Stock Has Been Trading

PJT Partners (PJT) recently closed at $182.73, with the stock edging down about 1.7% on the day and roughly flat over the past week. Over the past month the shares gained about 5%, and over the past 3 months they gained about 16%.

For longer term holders, PJT Partners shows a year to date gain of about 7.8% and a total return of about 2.1% over the past year, while the 3 year and 5 year total returns are described as very large multiples of the starting point. These figures give investors context on how the advisory focused investment bank has traded across different holding periods.

Short term momentum for PJT Partners looks constructive, with a 30 day share price return of about 5% and a 90 day gain of about 16%. The 5 year total shareholder return of about 164% points to a much stronger longer term picture.

Scan other advisory-focused stocks showing similar trading strength to PJT Partners with the hand picked 19 high quality undiscovered gems.

PJT Partners has pushed higher in recent months while still trading below both analyst targets and some intrinsic value estimates. Is that gap a small premium for quality, or a wider margin that the current price does not fully reflect yet?

Price-to-Earnings of 23.4x: Is it justified for PJT Partners?

On the latest close at $182.73, PJT Partners trades on a P/E of 23.4x, which screens as good value relative to the broader US Capital Markets industry but richer than its closer peer group.

The P/E ratio compares the current share price with earnings per share. For an advisory focused investment bank like PJT Partners, it gives a quick read on how much investors are paying for each dollar of earnings. This is often linked to the durability of fee income, the quality of the franchise, and confidence in future profitability.

According to Simply Wall St, PJT Partners is considered good value against the US Capital Markets industry average P/E of 39.7x. However, it also screens as more expensive than a narrower peer set where the average P/E is 20.3x. That mix suggests the market is willing to pay above peer-average earnings multiples for PJT Partners while still pricing it well below the broader industry level.

Put differently, PJT Partners looks cheaper than the wider industry on earnings, but carries a premium against its immediate peers that investors may be treating as a quality or growth markup. With the shares also trading at about a 12.1% discount to an internal fair value estimate based on future cash flows, that P/E premium sits alongside a model based view that the current price is below intrinsic value.

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

Result: Price-to-Earnings of 23.4x (ABOUT RIGHT)

However, PJT Partners still faces risks if advisory deal volumes soften or if competition compresses fees, which could pressure revenue of $1.89b and earnings of $199.53m.

Find out about the key risks to this PJT Partners narrative.

Another View on PJT Partners Using Cash Flows

Beyond the P/E discussion for PJT Partners, the Simply Wall St DCF model values the stock at about $207.87 per share, which is above the current $182.73 price. That points to a discount on projected cash flows. Could the cash flow outlook be telling a different story than earnings multiples?

Look into how this model works and what it assumes in the Look into how the SWS DCF model arrives at its fair value..

PJT Discounted Cash Flow as at Sep 2026
PJT Discounted Cash Flow as at Sep 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out PJT Partners for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 47 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If the mixed signals around PJT Partners leave you uncertain, move quickly to review the full picture and shape your own view with the 2 key rewards and 1 important warning sign.

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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.