Jones Lang LaSalle provides commercial real estate and investment management services worldwide. It offers a range of real estate services, including agency leasing, project and development management/construction, capital markets, property management, corporate finance, real estate investment banking/merchant banking, energy and sustainability services research, facility management outsourcing, strategic consulting and advisory services, investment management, tenant representation, lease administration, transaction management, logistics and supply-chain management, valuations, mortgage origination and servicing, and value recovery and receivership services. The company was founded in 1997 and is based in Chicago, Illinois.
JLL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Jones Lang Lasalle Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Jones Lang Lasalle Inc ranked in the 74th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 203.83%. The most interesting components of our discounted cash flow analysis for Jones Lang Lasalle Inc ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 10.49 -- which is good for besting 92.75% of its peer stocks (US stocks in the Real Estate sector with positive cash flow).
Jones Lang Lasalle Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than just 5.2% of tickers in our DCF set.
JLL's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than just 5.2% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Real Estate that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as JLL, try MPW, AHH, DEI, HIW, and EQC.