Raising Our Fair Value Estimate for Raymond James to $99 Per Share

We are increasing our fair value estimate for no-moat Raymond James Financial to $99 per share from $79, which implies a forward price/earnings ratio of about 13.5 times and a price/book ratio of 2.5 times. Of the $20 increase in our fair value estimate, about $1 is from earnings accrued since our previous valuation update, $4.50 is from projecting higher client asset growth, $5 is related to announced acquisitions, $8 is from reducing the tax rate that we use in our model, and $1.50 is from miscellaneous adjustments.