Raymond James Financial may be trading at a 32% discount to its intrinsic value of about $247 per share, according to an Excess Returns model, following a strong first quarter and a 13.4% revenue increase. The model uses an average return on equity of 18.92% on a book value of $64.56 per share and a stable earnings estimate of $14.03 per share, yielding an excess return of $7.99 per share. However, the stock's price-to-earnings ratio of 15.3 times is roughly in line with its estimated fair multiple, suggesting it is fairly valued on that measure, while broader value checks present a mixed picture. Over the past five years, Raymond James Financial has delivered a total return of 110.6%.
Raymond James Financial Inc.Analyst model suggests 32% undervaluation based on excess returns and strong Q1 revenue growth.