PJT Stock Risk & Deep Value Analysis
PJT Partners Inc
Financial Services • Capital Markets
DVR Score
out of 10
What You Need to Know About PJT Stock
We analyzed PJT Partners Inc using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran PJT through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Moderate. Here's what we found.
PJT Risk Analysis & Red Flags
What Could Go Wrong
The primary risk is a prolonged global economic downturn, which would significantly dampen M&A activity and restructuring demand, directly impacting PJT's advisory revenues. Given its human-capital intensive model, a sharp revenue decline could pressure margins and lead to talent retention challenges.
Risk Matrix
Overall
Moderate
Financial
Low
Market
Medium
Competitive
Medium
Execution
Low
Regulatory
Low
Red Flags
- ⚠
Business model's inherent sensitivity to M&A cycle slowdowns
- ⚠
No clear pathway to exponential scalability in a mature industry
- ⚠
Dependence on specialized human capital which can be costly and difficult to scale rapidly
Upcoming Risk Events
- 📅
Significant slowdown in global M&A activity
- 📅
Economic recession impacting demand for corporate advisory services
When to Reconsider
- 🚪
Exit if advisory revenue growth turns negative for two consecutive quarters
- 🚪
Sell if leading economic indicators strongly signal a severe M&A recession
- 🚪
Exit if key senior partners depart unexpectedly in significant numbers
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What Does PJT Partners Inc (PJT) Do?
Market Cap
$3.76B
Sector
Financial Services
Industry
Capital Markets
Employees
1,143
PJT Partners Inc., an investment bank, provides various strategic advisory, shareholder advisory, capital markets advisory, and restructuring and special situations services to corporations, financial sponsors, institutional investors, and governments worldwide. It offers advisory services to clients on various transactions, including mergers and acquisitions (M&A), spin-offs, activism defense, contested M&A, joint ventures, minority investments, and divestitures. The company also provides advisory services for private and public company boards and management teams on strategies for building productive investor relationships with a focus on shareholder engagement; complex investor matters; and other critical strategic, governance, and shareholder matters. In addition, it offers advisory services related to debt and equity markets, including debt financings; acquisition financings; structured product offerings; public equity raises initial public offerings, private capital raises, and other capital structure related matters. Further, the company provides geopolitical and policy advisory practice that assists corporate boards and management teams with navigating changing geopolitical relationships. Additionally, it offers advisory services in the areas of liability management, financial restructuring and reorganization, distressed M&A, and chapter 11 matters, as well as to management teams, corporate boards, and sponsors and creditors. The company also provides private fund advisory and fundraising services for a range of investment strategies; and advisory services to general and limited partners on liquidity and other structured solutions. The company was formerly known as Blackstone Advisory Inc. and changed its name to PJT Partners Inc. in March 2015. PJT Partners Inc. was incorporated in 2014 and is headquartered in New York, New York.
Visit PJT Partners Inc WebsiteInvestment Thesis
PJT Partners is a best-in-class independent financial advisory firm, well-positioned to capitalize on continued demand for M&A and restructuring services due to its strong brand, deep expertise, and robust client relationships. While not a 10x growth opportunity due to its mature market and human-capital intensive model, it offers a high-quality, profitable, and stable investment with consistent market share gains and strong operational execution.
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PJT Price Targets & Strategy
12-Month Target
$175.00
Bull Case
$189.00
Bear Case
$145.00
Valuation Basis
Based on 22x forward P/E applied to projected FY26 adjusted EPS of $8.00 (15% growth from FY25 $6.98) = $176.00.
Entry Strategy
Consider dollar-cost averaging on dips towards $150-$155, which represents a recent support zone and the lower end of analyst target range.
Exit Strategy
Take profit at $170-$180 range, aligning with analyst high targets. Set a stop loss around $145 (below recent flat base pattern support at $150.96).
Portfolio Allocation
1-3% for moderate risk tolerance, given its stability but limited exponential upside.
Price Targets & Strategy
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Is PJT Financially Healthy?
Valuation
P/E Ratio
20.89
Forward P/E
20.30
PEG Ratio
0.53
Profitability
Operating Margin
21.17%
Net Margin
10.51%
Return on Equity
84.45%
Revenue Growth
14.77%
EPS
$5.43
Balance Sheet
Current Ratio
1.19
Quick Ratio
1.19
Cash Flow
Free Cash Flow
$480.44M
Other
Beta (Volatility)
0.89
Dividend Yield
0.66%
Does PJT Have a Competitive Moat?
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🛡️ Narrow
Moat Trend
Stable
Moat Sources
3 Identified
PJT's moat is durable due to the high barrier to entry in sophisticated financial advisory, the importance of trust and relationships, and the deep expertise required. These are not easily replicated and tend to strengthen over time with successful mandates.
Moat Erosion Risks
- •Departure of key rainmaking talent to competitors
- •Damage to reputation from a high-profile failed deal or ethical lapse
- •Increased commoditization of certain advisory services
PJT Competitive Moat Analysis
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PJT Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral, as a professional services firm, it typically does not generate significant retail social media buzz.
Institutional Sentiment
Neutral to slightly Positive, indicated by a 'Hold' consensus but recent upgrades from Goldman Sachs (to Buy $170) and Keefe Bruyette (to Outperform $166).
Insider Activity (Form 4)
No specific Form 4 filings for insider buys/sells reported in the last 90 days. Institutional ownership is high at ~89%, with Aberdeen reducing holdings by 27.9% in Q4 2025.
Options Flow
Normal options activity, with no specific data indicating unusual institutional positioning.
Earnings Intelligence
Next Earnings
2026-04-28
Surprise Probability
Medium
Historical Earnings Pattern
Historically, PJT has shown robust performance in strong M&A markets, often beating estimates. Stock reaction is typically positive on beats and strong guidance, but sensitive to broader market sentiment regarding M&A activity.
Key Metrics to Watch
Competitive Position
Top Competitor
PWP
Market Share Trend
Gaining, evidenced by 21.9% 2-year revenue growth and 40% advisory revenue growth in 2025.
Valuation vs Peers
Trading largely in line with its 5-year median P/E and competitive with peers like Perella Weinberg Partners, not showing a significant discount or premium that would indicate extreme undervaluation or overvaluation.
Competitive Advantages
- •Exceptional reputation and brand in complex advisory engagements
- •Deep client relationships with blue-chip corporations
- •Highly specialized human capital and expertise
Market Intelligence
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What Could Drive PJT Stock Higher?
Near-Term (0-6 months)
- •Q1 2026 Earnings report on April 28, 2026
- •Continued strength in M&A advisory mandates
Medium-Term (6-18 months)
- •Sustained elevated demand for restructuring services in niche sectors
- •Expansion of key talent pool and senior hires
Long-Term (18+ months)
- •Continued entrenchment as a top-tier independent advisor, further eroding market share from bulge bracket banks
- •Potential for strategic acquisitions to expand advisory capabilities
Catalysts & Growth Drivers
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What's the Bull Case for PJT?
- ✓
Acceleration in market share gains in advisory services
- ✓
Continued growth in adjusted pretax income and margins
- ✓
Stability and growth in average advisory fees per deal
Bull Case Analysis
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Competing with PJT
See how PJT Partners Inc compares to related companies
| Company | Market Cap | DVR Score | P/E | Revenue | Profit Margin | Rev Growth | |
|---|---|---|---|---|---|---|---|
PJT Partners Inc PJT | $3.8B | 3.0 | 20.9 | $1.7B | 10.5% | 14.8% | |
Bank of America Corp BAC | $352.6B | 0.1 | 12.9 | $113.1B | 16.2% | 12.3% | Compare → |
JPMorgan Chase & Co. JPM | — | 1.5 | — | — | — | — | Compare → |
Visa Inc V | $585.4B | 1.4 | 28.8 | $10.9B | 50.2% | 14.6% | Compare → |
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How PJT Partners Inc Makes Money
PJT Partners Inc. is an independent financial advisory firm that helps corporations, financial sponsors, and governments navigate complex strategic and financial matters. They primarily earn revenue by advising clients on mergers and acquisitions (M&A), divestitures, spin-offs, and other strategic transactions. They also provide expertise in financial restructuring to companies facing distress or seeking to optimize their capital structure, and offer general strategic advisory services. Their business relies heavily on the expertise of their senior professionals and their deep relationships with clients, providing highly customized, complex, and specialized advice for a fee.
Read Full Business Model BreakdownFAQ
What is the DVR Score for PJT Partners Inc (PJT)?
As of April 14, 2026, PJT Partners Inc has a DVR Score of 3.0 out of 10, placing it in the "Risk Trap" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of PJT Partners Inc?
PJT Partners Inc's market capitalization is approximately $3.8B. The company operates in the Financial Services sector within the Capital Markets industry.
What ticker symbol does PJT Partners Inc use?
PJT is the ticker symbol for PJT Partners Inc. The company trades on the NYQ.
What is the risk level for PJT stock?
Our analysis rates PJT Partners Inc's overall risk as Moderate. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of PJT?
PJT Partners Inc currently has a price-to-earnings (P/E) ratio of 20.9. This is in line with broader market averages.
Does PJT Partners Inc pay a dividend?
Yes, PJT Partners Inc pays a dividend with a current yield of approximately 0.66%.
Is PJT Partners Inc's revenue growing?
PJT Partners Inc has reported revenue growth of 14.8%. The company is showing strong top-line momentum.
Is PJT stock profitable?
PJT Partners Inc has a profit margin of 10.5%. The company is profitable but margins are modest.
How often is the PJT DVR analysis updated?
Our AI-powered analysis of PJT Partners Inc is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on April 14, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for PJT (PJT Partners Inc) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.