Using the industry peer median P/E multiple (trailing + forward), Raymond James Financial, Inc. (RJF) has a fair value of $166.64 based on 5 comparable companies in the Financial - Capital Markets industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Raymond James Financial, Inc.RJF | 30,029 | 14.1x | 14.0x |
| Morgan StanleyMS | 260,679 | 16.1x | 16.6x |
| The Charles Schwab CorporationSCHW | 167,903 | 20.3x | 16.1x |
| State Street CorporationSTT | 35,163 | 13.4x | 12.4x |
| Arch Capital Group Ltd.ACGL | 34,092 | 8.1x | 10.7x |
| Willis Towers Watson Public Limited CompanyWTW | 27,487 | 17.7x | 17.2x |
| Industry Median | 16.1x | 16.1x | |
| (*) Profit after tax | 2,135 | 2,146 | |
| Equity Value | 34,363 | 34,494 | |
| (/) Outstanding shares | 207 | 207 | |
| Fair Price | $166 | $167 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.