Analyst Note| Michael Wong |
We are decreasing our fair value estimate for Stifel Financial to $72 per share from $81. Our fair value estimate implies an adjusted forward price/earnings multiple of about 12 times and a price/book ratio of 1.6 times. Of the net $9 decrease in our fair value estimate, most of it was due to forecasting lower institutional group revenue along with a related reduction in our normalized operating margin for the company. We currently assess the shares to be about fairly valued.