Using the PEG framework with analyst consensus forward EPS growth of 16.8% plus 1.5% dividend yield, Raymond James Financial, Inc. has a fair value of $203.36 based on NTM EPS (FY2026) of $12.12. The current PEG ratio is 0.71.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 15.3% |
| Dividend Yield | +1.5% |
| Adjusted Growth (clamped 8–25%) | 16.8% |
| Fair P/E | 16.8x |
| NTM EPS (FY2026) | $12.12 |
| Fair Value | $203.36 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $10.30 | — | — |
| FY2026E | $12.12 | +17.7% | 8 |
| FY2027E | $13.81 | +13.9% | 7 |
| FY2028E | $15.80 | +14.4% | 4 |
3Y Forward EPS CAGR: 15.3%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.4B | $6.63 | — |
| FY2022 | $1.5B | $6.98 | +5.3% |
| FY2023 | $1.7B | $7.97 | +14.2% |
| FY2024 | $2.1B | $9.70 | +21.7% |
| FY2025 | $2.1B | $10.30 | +6.2% |
4Y Historical EPS CAGR: 11.6%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.