Jefferies Financial GroupJEF -6.72%86 Pretax Margin % is 7.39% as of Feb. 2026, which is 20% below its 10-year median of 9.25. GuruFocus rates JEF with a GF Score™ of 86/100 and a GF Value™ of $57.93 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 777 Capital Markets companies, Jefferies Financial Group ranks worse than 59.85% on this metric.
The historical rank and industry rank for Jefferies Financial Group's Pretax Margin % or its related term are showing as below:
JEF'
s Pretax Margin % Range Over the Past 10 Years
Min: -0.33 Med: 9.25 Max: 25.2
Current: 9.39
JEF's Pretax Margin % is ranked worse than 59.85% of 777
companies
in the Capital Markets industry
Industry Median: 20.36
vs JEF: 9.39
Jefferies Financial Group (NYSE:JEF) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Jefferies Financial Group Pretax Margin % Related Terms
Jefferies Financial Group Pretax Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Capital Markets subindustry, Jefferies Financial Group's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Jefferies Financial Group Pretax Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Jefferies Financial Group's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Jefferies Financial Group's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Jefferies Financial Group (JEF) has a Pretax Margin % of 7.39% as of Feb. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Jefferies Financial Group and its competitors. This is 20% below median its historical median of 9.25. According to the industry distribution chart, Jefferies Financial Group ranks #465 out of 777 companies in the Capital Markets industry, placing it in the top 59.8%.
Is Jefferies Financial Group's Pretax Margin % too high?
Jefferies Financial Group's current Pretax Margin % of 7.39% is 20% below median its 10-year median of 9.25. The Capital Markets industry median Pretax Margin % is 20.36. Jefferies Financial Group's value of 7.39% is 63.7% below this industry median. Based on the distribution chart, Jefferies Financial Group ranks #465 out of 777 companies in the Capital Markets industry, which is below the industry midpoint. Overall, Jefferies Financial Group has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Jefferies Financial Group's Pretax Margin % compare to SF and BMNR?
According to the Capital Markets industry distribution chart, Jefferies Financial Group ranks #465 out of 777 companies for Pretax Margin %. This places Jefferies Financial Group in the lower half of its industry. The industry median Pretax Margin % is 20.36. Jefferies Financial Group's value of 7.39% is 63.7% below this benchmark. While the company's 10-year median is 9.25 vs. the industry median of 20.36, Jefferies Financial Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Capital Markets company?
The median Pretax Margin % among Capital Markets companies is 20.36, based on 777 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Jefferies Financial Group's current Pretax Margin % of 7.39% is 63.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Jefferies Financial Group and its competitors. For the Capital Markets industry, the median Pretax Margin % is 20.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jefferies Financial Group's current Pretax Margin % is 7.39%, which is 20% below median its own 10-year median of 9.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jefferies Financial Group stock overvalued right now?
Based on GuruFocus' analysis, Jefferies Financial Group (JEF) is currently considered Modestly Undervalued. The stock's GF Value™ is $57.93, compared to a current price of $49.10 — trading 15.2% below its estimated fair value. The current Pretax Margin % is 7.39%, which is 20% below median its 10-year median of 9.25 and 63.7% below the Capital Markets industry median of 20.36. Jefferies Financial Group's overall GF Score™ is 86/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Jefferies Financial Group (JEF), the current Pretax Margin % is 7.39% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Jefferies Financial Group (JEF) Overvalued in 2026?
Based on GuruFocus' analysis, Jefferies Financial Group stock appears to be undervalued.
The current stock price of $49.10 is trading 15.2% below its estimated GF Value™ of $57.93.
GuruFocus considers Jefferies Financial Group to be Modestly Undervalued.
Key valuation signals for JEF:
Pretax Margin %: 7.39% (20% below median its 10-year median of 9.25)
GF Value™: $57.93 vs. price of $49.10 (15.2% below fair value)
Industry Position: 63.7% below the Capital Markets median (#465 of 777)
No single metric tells the full story. See the JEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jefferies Financial Group is a full-service investment banking and capital markets firm that was founded in 1962. After nearly 30 years of focusing on institutional trading services, it entered the investment banking industry in the early 1990s, which ultimately grew into the core business. In 2013, Jefferies merged with Leucadia, a manufacturing-focused holding company. Since merging, Jefferies became the core of the combined business as the bulk of the legacy portfolio was sold off and the parent company was renamed to match the subsidiary. Within the investment banking landscape, Jefferies predominately serves the North American middle market and has captured considerable market share over the past decade.
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