As of today (2026-06-29), Raymond James Financial's weighted average cost of capital is 6.41%%. Raymond James Financial's ROIC % is 0.00% (calculated using TTM income statement data).
Raymond James Financial earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Raymond James Financial (MEX:RJF) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Raymond James Financial's weighted average cost of capital is 6.41%%. Raymond James Financial's ROIC % is 0.00% (calculated using TTM income statement data).
Raymond James Financial earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
* 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 Asset Management subindustry, Raymond James Financial's WACC %, along with its competitors' market caps and WACC % 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.
Raymond James Financial WACC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Raymond James Financial's WACC % distribution charts can be found below:
* The bar in red indicates where Raymond James Financial's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Raymond James Financial's market capitalization (E) is MXN511898.369 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Raymond James Financial's latest one-year quarterly average Book Value of Debt (D) is MXN68606.382 Mil.
a) weight of equity = E / (E + D) = 511898.369 / (511898.369 + 68606.382) = 0.8818
b) weight of debt = D / (E + D) = 68606.382 / (511898.369 + 68606.382) = 0.1182
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.388%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Raymond James Financial's beta is -0.3329.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.388% + -0.3329 * 6% = 2.3906%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Raymond James Financial's interest expense (positive number) was MXN32061.222 Mil. Its total Book Value of Debt (D) is MXN68606.382 Mil.
Cost of Debt = 32061.222 / 68606.382 = 46.7321%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 11136.208 / 50372.635 = 22.11%.
Raymond James Financial's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.8818
*
2.3906%
+
0.1182
*
46.7321%
*
(1 - 22.11%)
=
6.41%
* 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.
Raymond James Financial (MEX:RJF) has a WACC % of 6.41% as of Jun. 29, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Raymond James Financial and its competitors. This is 43% below median its historical median of 11.24. Over the past decade, Raymond James Financial's WACC % has ranged from 7.12 to 15.15. According to the industry distribution chart, Raymond James Financial ranks #1562 out of 1650 companies in the Asset Management industry, placing it in the top 94.7%.
Is Raymond James Financial's WACC % too high?
Raymond James Financial's current WACC % of 6.41% is 43% below median its 10-year median of 11.24. Over the past 10 years, this metric has ranged from a low of 7.12 to a high of 15.15. The Asset Management industry median WACC % is 5.66. Raymond James Financial's value of 6.41% is 13.3% above this industry median. Based on the distribution chart, Raymond James Financial ranks #1562 out of 1650 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, Raymond James Financial has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does Raymond James Financial's WACC % compare to NTRS and ARES?
According to the Asset Management industry distribution chart, Raymond James Financial ranks #1562 out of 1650 companies for WACC %. This places Raymond James Financial in the lower half of its industry. The industry median WACC % is 5.66. Raymond James Financial's value of 6.41% is 13.3% above this benchmark. Historically, Raymond James Financial's own WACC % has ranged from 7.12 to 15.15 over the past decade. While the company's 10-year median is 11.24 vs. the industry median of 5.66, Raymond James Financial has consistently been above 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 WACC % for an Asset Management company?
The median WACC % among Asset Management companies is 5.66, based on 1,650 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Raymond James Financial's current WACC % of 6.41% is 13.3% above 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 WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Raymond James Financial and its competitors. For the Asset Management industry, the median WACC % is 5.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Raymond James Financial's current WACC % is 6.41%, which is 43% below median its own 10-year median of 11.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Raymond James Financial stock overvalued right now?
Raymond James Financial (MEX:RJF) has a current WACC % of 6.41%. The stock's GF Value™ is MXN3,570.92, compared to a current price of MXN3,173.26 — trading 11.1% below its estimated fair value. The current WACC % is 6.41%, which is 43% below median its 10-year median of 11.24 and 13.3% above the Asset Management industry median of 5.66. Raymond James Financial's overall GF Score™ is 83/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Raymond James Financial (MEX:RJF), the current WACC % is 6.41% as of Jun. 29, 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 Raymond James Financial (MEX:RJF) Overvalued in 2026?
Based on GuruFocus' analysis, Raymond James Financial stock appears to be undervalued.
The current stock price of MXN3,173.26 is trading 11.1% below its estimated GF Value™ of MXN3,570.92.
Key valuation signals for MEX:RJF:
WACC %: 6.41% (43% below median its 10-year median of 11.24)
GF Value™: MXN3,570.92 vs. price of MXN3,173.26 (11.1% below fair value)
Industry Position: 13.3% above the Asset Management median (#1562 of 1650)
No single metric tells the full story. See the MEX:RJF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Raymond James Financial is a diversified financial services firm that provides wealth management, investment banking, asset management, and capital markets services to individuals, corporations, and municipalities. The firm maintains an extensive catalogue of products and services across its business lines. However, the wealth management franchise generates the bulk of its revenues and earnings through a vast network of more than 8,900 independent and employee-affiliated advisors, who collectively managed over $1.7 trillion in client assets as of fiscal year-end 2025. While Raymond James maintains a global footprint, the company derives over 90% of its revenue and an even larger percentage of its operating income, from the United States.
83GF Score
Get the complete analysis for MEX:RJF
WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:RJF has been successfully added to your 
