RJF
Raymond James Financial Inc
Price:  
141.76 
USD
Volume:  
780,418.00
United States | Capital Markets
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RJF WACC - Weighted Average Cost of Capital

The WACC of Raymond James Financial Inc (RJF) is 7.2%.

The Cost of Equity of Raymond James Financial Inc (RJF) is 8.90%.
The Cost of Debt of Raymond James Financial Inc (RJF) is 8.20%.

Range Selected
Cost of equity 7.00% - 10.80% 8.90%
Tax rate 22.00% - 22.80% 22.40%
Cost of debt 4.00% - 12.40% 8.20%
WACC 4.4% - 9.9% 7.2%
WACC

RJF WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.69 1.05
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 10.80%
Tax rate 22.00% 22.80%
Debt/Equity ratio 2.09 2.09
Cost of debt 4.00% 12.40%
After-tax WACC 4.4% 9.9%
Selected WACC 7.2%

RJF's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for RJF:

cost_of_equity (8.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.69) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.