T. Rowe Price Group, Inc.

NasdaqGS:TROW Stock Report

Market Cap: US$25.0b

T. Rowe Price Group Valuation

Is TROW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TROW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TROW ($111.81) is trading below our estimate of fair value ($196.72)

Significantly Below Fair Value: TROW is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for TROW?

Other financial metrics that can be useful for relative valuation.

TROW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.5x
Enterprise Value/EBITDA9x
PEG Ratio23.2x

Price to Earnings Ratio vs Peers

How does TROW's PE Ratio compare to its peers?

The above table shows the PE ratio for TROW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32.6x
STT State Street
14.4x13.2%US$27.7b
NTRS Northern Trust
12.3x-9.7%US$20.3b
ARES Ares Management
90.2x33.1%US$53.7b
BEN Franklin Resources
13.5x7.8%US$10.9b
TROW T. Rowe Price Group
13.1x0.6%US$25.0b

Price-To-Earnings vs Peers: TROW is good value based on its Price-To-Earnings Ratio (13.1x) compared to the peer average (32.6x).


Price to Earnings Ratio vs Industry

How does TROW's PE Ratio compare vs other companies in the US Capital Markets Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: TROW is good value based on its Price-To-Earnings Ratio (13.1x) compared to the US Capital Markets industry average (23.3x).


Price to Earnings Ratio vs Fair Ratio

What is TROW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TROW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.1x
Fair PE Ratio16.2x

Price-To-Earnings vs Fair Ratio: TROW is good value based on its Price-To-Earnings Ratio (13.1x) compared to the estimated Fair Price-To-Earnings Ratio (16.2x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TROW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$111.81
US$111.93
+0.1%
6.4%US$127.00US$101.00n/a14
Oct ’25US$107.11
US$111.79
+4.4%
7.1%US$125.00US$99.00n/a14
Sep ’25US$106.04
US$113.54
+7.1%
6.8%US$125.00US$99.00n/a13
Aug ’25US$112.03
US$115.58
+3.2%
6.3%US$125.00US$101.00n/a12
Jul ’25US$113.85
US$116.08
+2.0%
6.9%US$125.00US$101.00n/a12
Jun ’25US$117.83
US$115.33
-2.1%
7.3%US$125.00US$101.00n/a12
May ’25US$110.30
US$114.83
+4.1%
6.8%US$125.00US$101.00n/a12
Apr ’25US$120.30
US$105.77
-12.1%
6.4%US$115.00US$92.00n/a13
Mar ’25US$113.48
US$104.85
-7.6%
6.4%US$115.00US$92.00n/a13
Feb ’25US$109.87
US$100.92
-8.1%
6.3%US$110.00US$90.00n/a13
Jan ’25US$107.69
US$94.29
-12.4%
7.7%US$102.00US$79.00n/a12
Dec ’24US$102.45
US$91.50
-10.7%
6.6%US$101.00US$79.00n/a12
Nov ’24US$90.97
US$91.83
+0.9%
8.7%US$110.00US$80.00n/a12
Oct ’24US$104.87
US$107.25
+2.3%
11.3%US$123.00US$83.00US$107.1112
Sep ’24US$112.90
US$107.75
-4.6%
11.2%US$123.00US$83.00US$106.0412
Aug ’24US$121.09
US$106.50
-12.0%
10.8%US$123.00US$83.00US$112.0312
Jul ’24US$112.02
US$95.08
-15.1%
11.6%US$110.00US$73.00US$113.8513
Jun ’24US$108.38
US$95.08
-12.3%
11.6%US$110.00US$73.00US$117.8313
May ’24US$111.31
US$94.15
-15.4%
15.3%US$115.00US$67.00US$110.3013
Apr ’24US$112.90
US$95.46
-15.4%
16.1%US$122.00US$65.00US$120.3013
Mar ’24US$111.13
US$96.77
-12.9%
16.7%US$122.00US$65.00US$113.4813
Feb ’24US$120.04
US$96.08
-20.0%
15.8%US$120.00US$65.00US$109.8713
Jan ’24US$109.06
US$101.54
-6.9%
15.4%US$125.00US$70.00US$107.6913
Dec ’23US$127.09
US$96.92
-23.7%
14.8%US$123.00US$70.00US$102.4512
Nov ’23US$106.69
US$93.42
-12.4%
13.6%US$120.00US$70.00US$90.9712
Oct ’23US$105.01
US$108.45
+3.3%
15.2%US$138.00US$84.00US$104.8711

Analyst Forecast: Target price is less than 20% higher than the current share price.


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