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Quote this valuation with its source: Fair value, Potential value and the price at analysis.
FAQ
RJF — frequently asked questions
Is Raymond James Financial Inc. overvalued?
In our latest published analysis dated 2026-10-04, RJF looks meaningfully undervalued. The price recorded at analysis is 158 USD versus our fair value of 190 USD; the high endpoint is presented separately as potential value of 258 USD. That implies roughly 19.8% upside to fair value at that date.
Our latest published report, analyzed 2026-10-04, gives RJF a fair value of 190 USD and a potential value of 258 USD. The conclusion is triangulated across multiple valuation models and weighted by reliability for Raymond James Financial Inc.'s archetype; it is a dated research output, not a live price.
Should I buy RJF now?
Our latest published rating for RJF, analyzed 2026-10-04, is Buy. Raymond James Financial Inc. looks meaningfully undervalued at the analysis-date price of 158 USD versus fair value of 190 USD; potential value is 258 USD. This is research for educational purposes, not personalized investment advice.
What are the biggest risks for RJF?
The dedicated bear-case section in our report analyzed 2026-10-04 documents Raymond James Financial Inc.'s material risks, evidence, thresholds, and thesis-invalidation conditions. Scenario-specific explanations remain in that section so the report does not repeat or decontextualize them elsewhere.
What is RJF's rating?
Our latest published rating for RJF, analyzed 2026-10-04, is Buy, with a published moat assessment of 7/10 (Narrow). It reflects our fair value of 190 USD, the potential value of 258 USD, and the price recorded at analysis (158 USD).
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§1 RésuméEN
Réponse en 30 secondesBuy
Prix par rapport à la valeur
Cours
$158.21
Juste valeur
$189.51
Valeur potentielle
$258.24
Au
2026-10-02
Pourquoi le scénario peut fonctionner
Acceleration in Private Client Group adviser recruitment across independent and employee channels combined with an M&A advisory rebound in Capital Markets,.
Ce qui changerait notre avis
A sustained equity market correction exceeding 15% combined with Federal Reserve interest rate cuts reducing the federal funds rate by more than 150 basis points over a 12-to-18 month period.
We assign a Buy rating to Raymond James Financial with a Fair value of $189.51, representing 19.8% upside from the report-date price of $158.21 on October 2, 2026,.3
The house rating is Buy. For an ordinary investor, this indicates that the company offers an attractive risk-adjusted total return profile supported by high-quality recurring advisory revenues, healthy free cash flow conversion, and disciplined capital allocation.
As of October 2, 2026, the shares traded at a report-date price of $158.21. This price stands at a 16.5% discount to our central Fair value of $189.51, offering 19.8% implied upside. Under our constructive operating trajectory, reaches $258.24, offering substantial room for further appreciation if recruiting momentum and capital markets activity accelerate.
The primary risk that would challenge this view is a severe equity market downturn combined with accelerated monetary policy rate cuts. Because the Private Client Group accounts for 64.6% of net revenues ($10,282 million in FY2025), falling client asset valuations would directly reduce quarterly fee billings. Concurrently, yield compression on floating-rate bank assets would squeeze net interest income faster than deposit costs decline. If this occurs, investors would observe consolidated operating margins dropping below the management target threshold of 20% alongside slowing organic asset inflows.4,7
The core reason the investment thesis works is the compounding power of the Private Client Group, where annual organic net new asset production has exceeded 6% year-to-date. Strong adviser recruitment across both employee and independent affiliation options expands client assets under administration. Coupled with management's strict cap on annual non-compensation expenses of approximately $2.3 billion, top-line fee expansion flows through to robust free cash flow ($2,246 million in FY2025). Management deploys this cash into continuous share repurchases—retiring $1.6 billion in common stock over the past 12 months —which permanently shrinks the share count and drives per-share earnings growth faster than top-line revenues.3,4,5
Private Client Group Organic Growth Engine
Private Client Group delivers over 64% of consolidated revenue with organic net new assets expanding at >6% annualized,, supported by robust advisor recruiting pipelines across independent and employee channels.4,7
Strong cash generation of $2,246 million in FY2025 free cash flow funds meaningful share buybacks ($1.6 billion over the past 12 months), lowering diluted share count to 192.36 million and enhancing EPS growth.3,4,5
Expense Discipline and Margin Defense
A disciplined non-compensation cost ceiling of $2.3 billion preserves operating profitability above the firm's 20% operating target even as the company integrates acquisitions and invests in advisor technology.4
Recommandation maison
We rate Raymond James Financial a Buy because consistent adviser recruiting in the Private Client Group and disciplined non-compensation cost control generate robust free cash flow that funds significant share repurchases,,.4,5
Présentation de l’entreprise
Raymond James Financial, Inc. is a financial services holding company headquartered in St. Petersburg, Florida, where it owns 1.25 million square feet of office space in the Carillon Office Park. The firm operates primary technology and operational facilities in Southfield, Michigan, and Denver, Colorado, supporting operations across North America and Europe.
The company delivers financial planning, investment advisory, and securities transaction services to retail clients across the United States, Canada, and the United Kingdom primarily through its Private Client Group. Financial advisors operate through employee branch networks and independent affiliation options, earning revenue payouts while delivering asset management, mutual fund and annuity distribution, client margin lending, and cash sweep solutions,.
Beyond wealth advisory, the firm operates Raymond James Bank, Capital Markets underwriting and advisory services, Asset Management, and corporate investment activities,. The Other segment captures corporate cash interest, third-party private equity investments, enterprise debt interest, and acquisition-related expenses.
§2 Cas baissierEN
In a severe macroeconomic downturn combined with significant monetary policy rate reductions and a broad equity market pullback, Private Client Group asset-based fees compress from lower billing baselines while Raymond James Bank net interest margins contract as floating-rate loans reprice downward faster than deposit costs. Despite non-compensation expense discipline capping annual overhead near $2.3 billion, operating leverage over fixed platform costs and adviser payout floors would pressure operating margins toward the 18% to 20% range. Under this stress scenario, valuation falls toward the low-case boundary of $124.18, though substantial balance sheet cash of $11,389 million and modest total debt of $4,545 million protect financial stability.
The downside case assumes prolonged equity market weakness and policy rate reductions that compress banking spreads and dampen asset-based administrative fees. Rising competition for wealth management teams elevates transition payouts, constraining operating margins. This scenario would be confirmed if net new asset growth falls toward stagnation for two consecutive quarters or if banking revenues drop sharply.
Comment cette thèse peut échouer
Severe equity market correction and wealth fee compression driving operating margin deterioration
Private Client Group generates 64.6% of revenues ($10,282 million in FY2025). A broad equity market drawdown combined with non-compensation overhead of $2.3 billion and adviser payouts compresses consolidated operating margin from 28.66% below the 20% threshold targeted by management.3,4,7
FV impact
0%
Operating margin 6 points lower throughout
Trigger
Signaux d'alerte précoce à surveiller
Les cinq évolutions qui affaibliraient notre thèse d’investissement.
01
Private Client Group annualized organic net new asset growth
Stalling or slowing organic asset accumulation signals adviser recruiting fatigue or client attrition, eroding the core wealth compounding engine and requiring a downward revision to baseline revenue growth.
Actuel :>6.0% annualized FYTD
Alerte si<=2.0% for two consecutive quarters
02
§3 Avantage concurrentielEN
Narrow
Raymond James Financial possesses a narrow economic moat rooted in moderate switching costs across its Private Client Group client base and an intangible brand and distribution advantage in wealth adviser recruiting,. The core Private Client Group generated $10,282 million in revenue in FY2025, accounting for 64.6% of consolidated revenues of $15,912 million,. Wealth management accounts create substantial friction to departure once clients integrate financial planning, securities lending, and banking solutions with their trusted adviser.
Unlike traditional wirehouse brokerages or pure-play asset managers, Raymond James differentiates itself through a multi-affiliation model that allows advisers to operate as employee advisers, independent contractors, or hybrid RIAs. This structural flexibility, paired with an adviser-first culture, enables consistent recruiting momentum across different firms and communities. Management targets pre-tax operating margins near 20% while investing heavily in growth, generating economic returns on equity of 17% to 20% that exceed its 8.72% cost of equity. Moat durability is reinforced by non-compensation overhead discipline capped at approximately $2.3 billion for the fiscal year.
Profit économique
The company generates returns comfortably in excess of its cost of capital, sustaining return on equity between 17% and 20% (supported by FY2025 net income of $2,135 million on $15,912 million in revenue). This performance comfortably exceeds the computed cost of equity of 8.72% and computed WACC of 9.83%, confirming positive economic value creation across market cycles.1,6
7/ 10
Narrow
Sources of advantage
01Switching costs in wealth management client accounts — Private Client Group client relationships exhibit high retention and switching costs once accounts are integrated across comprehensive wealth planning, advisory fee schedules, and cash sweep accounts, driving $10,282 million in FY2025 segment revenue and net new asset growth exceeding 6% annualized.Moderate
02Adviser distribution network and multi-affiliation platform reputation — The firm's adviser-centric culture and multi-affiliation platform (employee, independent contractor, and RIA custody) create a distinctive brand reputation and distribution network, attracting productive adviser teams and maintaining near-record adviser satisfaction without relying solely on top-dollar upfront transition checks,.Moderate
Menaces connues pour l'avantage
Menace
Gravité
Calendrier
Atténuation
Intense industry competition for productive advisers driving upfront transition compensation inflation
medium
12-24 months
Differentiating through adviser tools, superior cultural satisfaction, and flexible affiliation options rather than attempting to outbid competitors solely on transition checks.4
The highlighted cell is Fair value when every assumption sits at its base level ($189.51). Each row and column shows what Fair value becomes when one assumption moves.
The base case reflects steady organic asset gathering across Private Client Group affiliation channels, supported by disciplined non-compensation cost containment. At $158.21, the shares trade at an attractive discount to Fair value of $189.51, offering an implied upside of 19.8%. Under this path, the target reaches $189.51 with a probability of 60.0%, representing an expected return of 19.8%. Disconfirmation would occur if organic asset recruitment decelerates materially over consecutive reporting cycles.
Maintain Buy; Rebalance at normal review checkpoints while verifying Private Client Group adviser retention and quarterly share repurchase progress.
Déclencheur: Net new asset generation tracks historical pacing, non-compensation expenses align with management targets for the fiscal year, and banking spreads absorb moderate interest rate adjustments.
Results confirming steady asset gathering and disciplined cost containment keep intrinsic compounding on track toward Fair value.
Manqué
Downgrade the rating; Pause incremental capital deployment and reassess adviser recruiting pipeline stability and consolidated margin durability before adjusting portfolio allocation.
Déclencheur: Net new assets turn negative across multiple affiliation channels, floating-rate bank asset yields decline faster than deposit costs compress margins, or non-compensation overhead exceeds guidance.
Organic outflow or margin contraction would compromise the core wealth management compounding thesis, requiring reassessment of operating durability.
Qualité des résultats
Operating earnings show high cash conversion, with cash flow from operations fully supporting net income. Capital intensity remains minimal, and share repurchases consistently retire common equity above stock-based compensation issuance. Segment profitability is supported by recurring fee-based wealth assets rather than aggressive balance sheet mark-to-market assumptions or non-operating accrual expansions.
Dynamique des estimations
Consensus revisions for FY2027 revenue have moved modestly higher following quarterly results, while forward earnings expectations remain steady. Analysts have incorporated sequential expansion in asset management and administrative fees alongside disciplined full-year non-compensation overhead targets.
Métriques à surveiller avant publication
01
Métrique:
Private Client Group Organic Net New Asset Growth
ActuelExpanding at an annualized pace above historical medians, driven by balanced inflows across employee and independent affiliation options.
In FY2025, operating cash flow reached $2,434 million and free cash flow reached $2,246 million, against capital expenditures of $188 million (capex represents 1.18% of $15,912 million revenue). Free cash flow conversion relative to net income of $2,135 million was 105.2%, reflecting asset-light wealth operations. Non-cash stock-based compensation of $254 million is modest and more than fully retired through open-market repurchases.5,6
Allocation du capital
Capital allocation prioritizes shareholder return through share repurchases and common dividends, supplemented by disciplined strategic acquisitions. Over the trailing 12 months, the company repurchased 9.8 million common shares for approximately $1.6 billion, returning $506 million in Q3 2026 alone ($400 million in repurchases at an average price of $152 per share plus dividends). This execution lowered diluted from 206.6 million in FY2025 to 192.36 million shares as of October 2026. Substantial liquidity of $11,389 million in cash against total debt of $4,545 million provides structural flexibility to fund selective platform integrations like Clark Capital.
Returns on capital remain durable, supported by recurring wealth management fees and disciplined non-compensation cost containment capped at approximately $2.3 billion. While third-party reported ROIC of 3.14% is depressed by balance sheet asset inclusion from banking operations, return on equity of 18.42% accurately portrays underlying wealth compounding efficiency.
Return on equity of 18.42% comfortably exceeds the computed cost of equity of 8.72% and computed WACC of 9.83%, confirming sustained economic value creation.
Aperçu du bilanComment les actifs publiés sont détenus et financés pour la période sélectionnée.
StockMarketAgent.AI
Composition des actifsFinancé par
Total de l’actif88,2 Md $USTrésorerie11,4 Md $USActifs courants21,1 Md $USTotal du passif75,7 Md $USPassifs courants66 Md $USCapitaux propres12,5 Md $US
Données de ventilation du bilan
Total de l’actif
88 230 000 000 $US
Trésorerie
11 389 000 000 $US
Actifs courants
21 098 000 000 $US
Total du passif
75 726 000 000 $US
Passifs courants
65 966 000 000 $US
Capitaux propres
12 504 000 000 $US
Passerelle des flux de trésorerieComment le flux de trésorerie d’exploitation est devenu du flux de trésorerie disponible en FY2025.
StockMarketAgent.AI
Rapprochement des flux d’exploitation
Résultat net2,1 Md $USDotations aux amortissements+195 M $USRémunération en actions+254 M $USAutres ajustements opérationnels−150 M $USFlux de trésorerie d'exploitation2,4 Md $US
Rapprochement de la trésorerie d’ouverture à la clôture
Trésorerie d’ouverture14,3 Md $USFlux de trésorerie d'exploitation+2,4 Md $USFlux d’investissement−4,3 Md $USFlux de financement+2,4 Md $USEffet de change−35 M $USTrésorerie de clôture14,8 Md $US
2,4 Md $US − 188 M $USFlux de trésorerie disponible 2,2 Md $US
Données de la passerelle des flux de trésorerie
Résultat net
2 135 000 000 $US
Entrées d’exploitation
2 584 000 000 $US
Dotations aux amortissements
195 000 000 $US
Rémunération en actions
254 000 000 $US
Flux de trésorerie d'exploitation
2 434 000 000 $US
Sorties d’exploitation
150 000 000 $US
Trésorerie disponible
19 143 000 000 $US
Trésorerie d’ouverture
14 348 000 000 $US
Entrées de financement
2 361 000 000 $US
Sorties d’investissement
4 321 000 000 $US
Capex
188 000 000 $US
Autres activités d’investissement
4 133 000 000 $US
Effet de change
35 000 000 $US
Trésorerie de clôture
14 787 000 000 $US
Flux d’investissement
-4 321 000 000 $US
Flux de financement
2 361 000 000 $US
Chiffre d’affaires et résultatsComment la taille de l’activité se traduit en bénéfice publié.
Trésorerie et detteLiquidités disponibles face à l’endettement total.
Génération de trésorerieFlux de trésorerie d’exploitation comparé au flux de trésorerie disponible.
RentabilitéÉvolution des marges brute, opérationnelle et nette.
Données financières ponctuelles utilisées dans l’analyse du 2026-10-04.
Raymond James Financial Inc. (RJF) trades at 11.4x forward earnings against a peer median of 10.2x. The comparison uses 4 peers: T. Rowe Price Group Inc., Ameriprise Financial Inc., State Street Corporation and Franklin Resources Inc., as of 2026-10-04.
§10 Secteur et cycleEN
Phase du cycle
Expansion
The industry capex-to-revenue benchmark stands at 21.0%, whereas the company operates with capital expenditures of $188 million on $15,912 million revenue (1.18%),. Because detailed physical capacity and lead-time indicators are not published for wealth broker-dealers, the industry cycle view is demand-led and evidence-limited.6
Cycle haussier
A cyclical upswing is characterized by rising equity market valuations that lift client assets under administration, robust adviser recruiting pipelines, sequential expansion in asset management and administrative fees, and narrowing buyer-seller valuation spreads that unlock pent-up M&A advisory revenues.
Cycle baissier
A cyclical downturn involves prolonged equity market pullbacks that reduce client asset bases, monetary policy easing that compresses floating-rate bank asset yields faster than deposit costs can fall, and intense poaching wars that inflate adviser transition packages.
Tendances séculaires
Tendance
Impact
Note
Migration of advisers toward independent and hybrid wealth models
positive
Wealth management advisers increasingly depart traditional wirehouses in search of equity ownership and multi-affiliation flexibility, directly feeding recruiting pipelines across employee and independent channels,.
The company occupies a differentiated hybrid position between wirehouse conglomerates and boutique RIAs. With $10,282 million in Private Client Group revenue and $3,376 million in Raymond James Bank revenue, it pairs institutional banking and capital markets capabilities with an adviser-first culture, driving organic asset growth exceeding 6% annualized.4,7
§11 Gestion de positionEN
Taille de position
3-5%
A moderate position sizing of 3-5% reflects high recurring fee revenue in Private Client Group and strong balance sheet liquidity, balanced against sensitivity to equity market cycles and short-term interest rate movements.
Risque
Portfolio risk is managed through position caps at 5%, regular quarterly monitoring of organic asset recruitment, and avoiding concentrated exposure to financial asset-sensitive equities during macro market corrections. Diversification across non-interest fee wealth management ($10,282 million in FY2025) and commercial spread income ($3,376 million in FY2025) limits issuer-specific downside.
Tranches d'entrée
Niveau
Action
Pourquoi
$155.00 - $160.00
Initiate base tranche (40-50% of target allocation)
Trading range near $158.21 provides a 16.5% discount to Fair value ($189.51).
$145.00 - $152.00
Add second tranche (30-40% of target allocation)
Coincides with management trailing 12-month buyback execution level ($152 average repurchase price), offering an expanded margin of safety.
The Private Client Group represents an organic growth engine delivering over 64% of consolidated revenues ($10,282 million in FY2025). With net new asset growth tracking above 6% annualized and $1.6 billion in trailing share repurchases, long-term investors benefit from steady compounding and consistent per-share equity value expansion.4,7
Total Return Investor
Buy
Trading at $158.21 as of October 2, 2026, RJF provides 19.8% implied upside to our central Fair value of $189.51. An 11.35x forward P/E multiple provides an attractive entry point given 11% sequential fee growth guidance in wealth management and a strong capital return cushion.3,4
Tactical / Cyclical Investor
Hold
While valuation is appealing, near-term interest rate cuts present yield compression risks for Raymond James Bank floating-rate loans. Cyclical investors may prefer waiting for net interest margin stabilization before adding exposure, while maintaining existing holdings to capture ongoing buybacks.4
§14 Recommandation finaleEN
Action
Acheter
We recommend building a position in Raymond James Financial at the report-date price of $158.21 as of October 2, 2026. The company offers a compelling 19.8% implied return to our Fair value of $189.51, anchored by robust organic growth in the Private Client Group and disciplined capital allocation.3
Sustained free cash flow generation ($2,246 million in FY2025) provides abundant balance-sheet capacity to retire shares ($1.6 billion repurchased over trailing 12 months), dampening share countdilution and underpinning steady double-digit EPS growth.
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0 char
Sources
The records this analysis drew on, as they stood when it was run.
Not every cited input appears here: internal calculations and intermediate model outputs have no external record, and some citations could not be matched to one.
Within 12 months
Aggressive rate cuts causing rapid floating-rate bank asset yield compression and NIM erosion
Raymond James Bank generated $3,376 million in FY2025 revenue primarily through floating-rate corporate and securities-based loans. Multiple policy rate reductions re-price earning assets downward faster than deposit costs can fall, triggering an annualized revenue drop in Raymond James Bank below $2.8 billion.4,7
FV impact
-3.4%
The analyst's bear scenario path and multiple as the base case
Trigger
Within 18 months
Peer multiple compression and wealth industry derating across advisory multiples
The company forward P/E multiple sits at 11.35x, while peer AMP trades at 9.50x and TROW trades at 10.14x. In a slowing growth or higher regulatory scrutiny environment, advisory multiples compress toward the peer cohort trough.2,3
A drop in buyback volume below $500 million signals impaired free cash flow generation or capital diversion, halting diluted share retirement and dampening per-share earnings growth.
Rapid asset yield compression on floating-rate corporate and securities-based loans under policy rate cuts outpacing deposit repricing, driving net interest margin contraction.
Actuel :$3,376 million in FY2025
Alerte si<$2,800 million annualized
05
Non-compensation operating expenses
Excessive platform overhead growth and unmanaged technology or acquisition integration expenses eroding pre-tax operating margins below target ranges.
Actuel :$2.3 billion target for the fiscal year
Alerte si>$2.5 billion annualized
Policy interest rate cuts compressing floating-rate asset yields faster than bank deposit costs reprice
medium
12-18 months
Maintaining loan portfolio diversification, duration matching, and relying on recurring non-interest fee growth across Private Client Group to offset net interest margin pressure.4
Multiply the peer median PEG by this stock's forecast growth to derive an implied forward P/E, then apply it to forward EPS.
How this lens was calculated
Inputs used in this report
The upside case envisions accelerating adviser recruiting across employee and independent channels, driving organic asset growth into the high single digits. A concurrent rebound in M&A advisory pipelines unfreezes capital markets activity, expanding operating margins toward top peer levels. Under this path, the target reaches $258.24 with a probability of 20.0%, representing an implied return of 63.2% toward Potential value of $258.24. Disconfirmation would emerge if transaction backlogs fail to convert as buyer-seller valuation spreads adjust.
03
Métrique:
Raymond James Bank Net Interest Spread and Asset Yields
ActuelFloating-rate securities-based and corporate loans face yield compression as short-term policy interest rates decline.
Pourquoi c'est important
Reflects asset sensitivity to policy rate changes. Re-pricing speed of floating-rate loans versus deposit costs determines spread income durability.
04
Métrique:
Common Share Repurchase Execution
ActuelActive buyback execution continues to retire common shares at prices below Fair value.
Share buybacks exceed compensation dilution, driving net share reduction
Trailing 12-month share buybacks totaled $1.6 billion (9.8 million shares), far exceeding annual stock-based compensation of $254 million and lowering share count to 192.36 million.
Net share retirement eliminates equity dilution and drives per-share earnings compounding above top-line revenue growth.
Management guided full-year non-compensation expenses to approximately $2.3 billion while integrating Clark Capital.
Disciplined cost caps defend operating profitability near the target 20% to 28% band even during market corrections,.
State Street CorporationSTT
Cours / juste valeur
Juste valeur174,77 $USReport-date price176,34 $US
Date d’évaluation
Avantage concurrentielNarrow
Score d’investissement62 / 100
Marge
RJF
Raymond James Financial Inc.
$30.4B
11.4x
2.0x
18.4%
—
TROW
T. Rowe Price Group Inc.
$22.3B
10.1x
2.9x
7.0x
19.4%
28.7%
AMP
Ameriprise Financial Inc.
$43.4B
9.5x
2.2x
63.4%
30.7%
STT
State Street Corporation
$48.3B
11.4x
3.2x
12.4%
34.3%
BEN
Franklin Resources Inc.
$16.7B
10.3x
1.8x
11.2x
7.9%
13.0%
Technology and AI tool enablement across wealth platforms
neutral
Deployment of artificial intelligence tools enhances adviser productivity in client prospecting and workflow automation, though associated infrastructure and token expenses require ongoing cost discipline.
