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1. Company Snapshot

1.a. Company Description

Lazard Ltd, together with its subsidiaries, operates as a financial advisory and asset management firm in North America, Europe, Asia, Australia, and Central and South America.It operates in two segments, Financial Advisory and Asset Management.The Financial Advisory segment offers various financial advisory services regarding mergers and acquisitions, restructurings, capital advisory, shareholder advisory, capital raising, sovereign advisory, and other strategic advisory matters.


This segment serves corporate, partnership, institutional, government, sovereign, and individual clients across various industry areas, including consumers, financial institutions, healthcare and life sciences, industrials, power and energy/infrastructure, and real estate, as well as technology, telecommunication, and media and entertainment.The Asset Management segment offers a range of investment solutions, and investment and wealth management services in equity and fixed income strategies; asset allocation strategies; and alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries, and private clients.The company was founded in 1848 and is based in Hamilton, Bermuda.

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1.b. Last Insights on LAZ

Lazard's recent momentum is driven by its Q4 earnings beat, with advisory and asset management revenues rising year-over-year. The company's assets under management (AUM) also increased, despite higher costs. Institutional investors, such as AE Wealth Management LLC, have boosted their holdings in Lazard, demonstrating confidence in the company's prospects. According to the Q4 2025 earnings call transcript, Lazard's strong performance is attributed to its strategic expansion and market gains.

1.c. Company Highlights

2. Lazard's Strong 2025 Performance and 2026 Outlook

Lazard reported firm-wide revenue of $3 billion in 2025, with record revenue in Financial Advisory and a 12% increase in Asset Management. The firm's fourth-quarter revenue was $892 million, up 10% from the prior year. Financial Advisory revenue was $542 million for the fourth quarter, up 7% from one year ago, while Asset Management revenue was $339 million, up 18% compared to the prior year. The actual EPS came out at $0.8, beating estimates of $0.68.

Publication Date: Feb -04

📋 Highlights
  • 2025 Firm-Wide Revenue: Lazard reported $3 billion in revenue, with Financial Advisory at $1.8 billion (up 7% YoY) and Asset Management at $1.2 billion (12% AUM growth).
  • Fourth Quarter Revenue Growth: Q4 revenue rose 10% YoY to $892 million, driven by $542 million (7% YoY) in Financial Advisory and $339 million (18% YoY) in Asset Management.
  • Non-M&A Revenue Expansion: Non-M&A revenue accounted for 40% of total revenue in 2025, expected to rise to 50% by 2030 due to restructuring and liability management growth.
  • Asset Management Momentum: Asset Management revenue increased 12% YoY to $1.2 billion, with $13 billion in "won but not yet funded" opportunities (emerging markets, infrastructure).

Segment Performance

Financial Advisory revenue was $1.8 billion in 2025, driven by record revenue in EMEA and private capital advisory. Asset Management revenue was $1.2 billion, with a 12% increase in AUM. The firm's Asset Management business is expected to deliver positive net flows in 2026, supported by a more diversified platform and enhanced global distribution strategy. As Chris Hogben, CEO of Asset Management, noted, "We had record growth inflows last year, but also an elevated level of outflows due to the closure of a large sub-advised mandate."

Outlook and Growth Prospects

Lazard expects to accelerate M&A activity and deliver positive net flows in 2026. The firm is well-positioned to benefit from growing demand for private capital advisory and restructuring services. Peter Orszag stated that the non-M&A businesses revenue mix was roughly 40% of total revenue in 2025 and is expected to rise to 50% over time due to growth in fundraising and restructuring liability management.

Valuation and Metrics

With a P/E Ratio of 21.89 and ROE of 30.96%, Lazard's valuation multiples indicate a premium for its growth prospects. The P/S Ratio is 1.57, and the EV/EBITDA is 13.89. Analysts estimate next year's revenue growth at 12.4%. The Dividend Yield is 3.82%, providing a relatively attractive return for investors.

Key Drivers and Risks

The key drivers for Lazard's performance include M&A activity, private equity growth, and the firm's ability to deliver exceptional client service. Risks include geopolitical tensions and market volatility, which could impact M&A activity. As Peter Orszag noted, "Companies are recognizing the need to take into account a broader array of variables today," highlighting the importance of contextual alpha in navigating complex market conditions.

3. NewsRoom

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LAZARD EXPANDS ITS HEALTHCARE SERVICES TEAM WITH ADDITION OF JOHN KOSKI AND ROBERT LOWE

Feb -18

Source: prnewswire.com

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The market is 'too sanguine' about inflation, says Lazard's Eric Van Nostrand

Feb -13

Source: youtube.com

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Lazard, Inc. (LAZ) Presents at UBS Financial Services Conference 2026 Transcript

Feb -11

Source: seekingalpha.com

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Lazard, Inc. (LAZ) Presents at Bank of America Financial Services Conference 2026 Transcript

Feb -10

Source: seekingalpha.com

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LAZARD REPORTS JANUARY 2026 ASSETS UNDER MANAGEMENT

Feb -10

Source: prnewswire.com

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Comparing Lazard (NYSE:LAZ) & Beeline (NASDAQ:BLNE)

Feb -10

Source: defenseworld.net

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Lazard, Inc. $LAZ Shares Sold by Principal Financial Group Inc.

Feb -03

Source: defenseworld.net

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Lazard, Inc. $LAZ Shares Purchased by New York State Common Retirement Fund

Feb -03

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.91%)

6. Segments

Financial Advisory

Expected Growth: 8%

Lazard Ltd's 8% growth in Financial Advisory is driven by increasing M&A activity, strategic partnerships, and expansion into new markets. Strong brand reputation, diverse client base, and expertise in complex transactions also contribute to growth. Additionally, the company's ability to adapt to changing market conditions and regulatory environments has enabled it to capitalize on emerging opportunities.

Asset Management

Expected Growth: 10%

Lazard's Asset Management 10% growth driven by increasing demand for alternative investments, expansion into emerging markets, and strategic acquisitions. Strong brand reputation, diversified product offerings, and investment in digital platforms also contribute to growth. Additionally, the trend towards passive investing and ETFs, as well as the need for sustainable and ESG-focused investment solutions, support Lazard's growth momentum.

Corporate

Expected Growth: 9%

Lazard Ltd's corporate segment growth of 9% is driven by increasing demand for M&A advisory services, strategic partnerships, and expansion into new markets. Additionally, the company's diversified revenue streams, cost savings initiatives, and strong brand reputation contribute to its growth momentum.

7. Detailed Products

Mergers and Acquisitions Advisory

Lazard Ltd provides strategic advisory services to clients on mergers, acquisitions, divestitures, and other strategic transactions.

Capital Raising Advisory

Lazard advises clients on capital raising strategies, including equity and debt offerings, to help them achieve their financing goals.

Restructuring and Debt Advisory

Lazard provides restructuring and debt advisory services to help clients navigate financial distress, debt restructuring, and turnaround situations.

Shareholder Advisory

Lazard advises clients on shareholder activism, proxy contests, and other shareholder-related matters to help them navigate complex governance issues.

Sovereign Advisory

Lazard advises governments and sovereign entities on strategic transactions, including privatizations, public-private partnerships, and infrastructure development.

Asset Management

Lazard's asset management business provides investment management services to institutional clients, including pension funds, endowments, and sovereign wealth funds.

8. Lazard Ltd's Porter Forces

Forces Ranking

Threat Of Substitutes

Lazard Ltd's financial advisory services are highly specialized, making it difficult for substitutes to emerge. However, the rise of fintech and digital platforms may pose a moderate threat in the future.

Bargaining Power Of Customers

Lazard Ltd's clients are primarily large corporations and governments, which have limited bargaining power due to their reliance on the company's expertise and reputation.

Bargaining Power Of Suppliers

Lazard Ltd's suppliers are primarily individual professionals and small firms, which have limited bargaining power due to the company's strong brand and market position.

Threat Of New Entrants

The financial advisory industry has high barriers to entry, including regulatory hurdles and the need for specialized expertise, making it difficult for new entrants to compete with Lazard Ltd.

Intensity Of Rivalry

The financial advisory industry is highly competitive, with several established players competing for market share. Lazard Ltd faces intense rivalry from companies like Goldman Sachs, Morgan Stanley, and JPMorgan Chase.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 80.71%
Debt Cost 4.98%
Equity Weight 19.29%
Equity Cost 11.26%
WACC 6.19%
Leverage 418.29%

11. Quality Control: Lazard Ltd passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Houlihan Lokey

A-Score: 5.6/10

Value: 2.6

Growth: 6.8

Quality: 7.8

Yield: 3.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Piper Sandler

A-Score: 5.5/10

Value: 4.1

Growth: 5.4

Quality: 6.6

Yield: 5.0

Momentum: 5.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Evercore

A-Score: 5.3/10

Value: 3.0

Growth: 5.8

Quality: 8.0

Yield: 3.0

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Lazard

A-Score: 5.3/10

Value: 4.2

Growth: 4.0

Quality: 5.5

Yield: 8.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
LPL Financial Holdings

A-Score: 5.3/10

Value: 4.3

Growth: 6.8

Quality: 6.5

Yield: 0.0

Momentum: 8.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
StoneX

A-Score: 5.1/10

Value: 7.3

Growth: 4.2

Quality: 4.6

Yield: 0.0

Momentum: 9.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

51.33$

Current Price

51.33$

Potential

-0.00%

Expected Cash-Flows