Is Raymond James Financial Inc. (RJF) overvalued?
On Equity Rank's model estimate, RJF trades close to its fair value (6% below it). Raymond James Financial Inc. (RJF) last closed at $162.81; the multi-method model fair value is $172.67.
| Price | Model fair value | Price vs model |
|---|---|---|
| $162.81 | $172.67 | 6% below |
What the answer rests on
- 4 of 8 valuation methods put RJF's value above its price and 4 put it below, so the methods disagree.
- To justify today's price, RJF's free cash flow would need to grow about 1.0% a year for ten years (a reverse discounted cash flow).
- RJF trades at 14.2 times its last year's earnings, against a median of 13.3 for 97 profitable Asset Management companies.
- Over the past year the price sat below the model fair value on 100% of trading days. The gap ranged from 30% below to 4% below the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind RJF's fair value · What prices assume · Other companies