Lendlease Group (ASX:LLC) is back in focus after its full year 2026 results showed sales of A$5,429 million and a net loss of A$749 million, along with a reduced ordinary dividend.
Lendlease Group’s latest results and reduced dividend come after a sharp reset in investor expectations, with the share price up 2.1% on the day and 7.4% over 90 days, yet posting a year to date share price decline of 43.4% and a 1 year total shareholder return decline of 44.7%.
Spot opportunities beyond Lendlease Group by reviewing hand picked companies on our 14 high quality undervalued stocks that combine quality fundamentals with more resilient recent share price trends.After a sharp fall in 2026 and a brief rebound around these results, Lendlease Group now presents a tougher question: Does a lower share price and reduced dividend still offer a rewarding entry, or is the risk doing more of the talking?
Most Popular Narrative: 21.7% Overvalued
According to the most followed narrative on Lendlease Group, the fair value sits at A$2.40 per security compared with the A$2.92 last close. This implies limited compensation for the current risks.
Lendlease looks cheap relative to its reported asset value, but at $2.80 I don’t think the discount is yet wide enough to compensate for the leverage, execution risk and time required to realise that value.
For me, LLC is currently a watchlist, not a buy.
The narrative focuses on how much of the asset base converts to cash, what happens to gearing, and how development returns evolve over time. The fair value hinges on those moving parts, not just headline net tangible assets or near term guidance.
Result: Fair Value of A$2.40 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this Lendlease Group narrative could be upended if CRU exits trigger fresh impairments or if gearing stays elevated instead of tracking toward the mid 20s.
Find out about the key risks to this Lendlease Group narrative.
Another View On Lendlease Group’s Valuation
While the most popular narrative on Lendlease Group points to an A$2.40 fair value and an overvalued share price, the P/S ratio of 0.4x tells a different story. The Oceanic real estate industry averages 2x, peers sit around 3.7x, and the fair ratio is 1x. This raises the question of whether the market might eventually move closer to that level. Is this discount a genuine opportunity or a signal that risks are still being priced in?
For a closer look at what the numbers imply at different sales multiples, including how they compare to that fair ratio, See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Given the mixed mood around Lendlease Group, it is worth checking the underlying data yourself and deciding how much risk and reward you are comfortable with. To see a concise breakdown of both sides of the story, take a look at the 2 key rewards and 2 important warning signs.
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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.
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