T. Rowe Price Group, Inc.

XTRA:TR1 Stock Report

Market Cap: €25.3b

T. Rowe Price Group Valuation

Is TR1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 TR1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TR1 (€114.14) is trading below our estimate of fair value (€209.92)

Significantly Below Fair Value: TR1 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TR1?

Key metric: As TR1 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TR1. This is calculated by dividing TR1's market cap by their current earnings.
What is TR1's PE Ratio?
PE Ratio12.9x
EarningsUS$2.04b
Market CapUS$26.25b

Price to Earnings Ratio vs Peers

How does TR1's PE Ratio compare to its peers?

The above table shows the PE ratio for TR1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.7x
DWS DWS Group GmbH KGaA
13.2x12.7%€7.9b
MLP MLP
10x8.3%€642.7m
DBK Deutsche Bank
7.8x13.4%€30.2b
AR4 AURELIUS Equity Opportunities SE KGaA
3.8xn/a€389.6m
TR1 T. Rowe Price Group
12.9x0.3%€26.3b

Price-To-Earnings vs Peers: TR1 is expensive based on its Price-To-Earnings Ratio (12.9x) compared to the peer average (8.7x).

Price to Earnings Ratio vs Industry

How does TR1's PE Ratio compare vs other companies in the DE Capital Markets Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AR4 AURELIUS Equity Opportunities SE KGaA
3.8xn/aUS$408.35m
HXCK Ernst Russ
3.8x-18.2%US$205.92m
VG8 Varengold Bank
1.8xn/aUS$24.01m
XE8 Black Sea Property
0.7xn/aUS$7.67m
No more companies available in this PE range
TR1 12.9xIndustry Avg. 19.9xNo. of Companies6PE01632486480+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TR1 is good value based on its Price-To-Earnings Ratio (12.9x) compared to the German Capital Markets industry average (19.9x).

Price to Earnings Ratio vs Fair Ratio

What is TR1'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.

TR1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.9x
Fair PE Ratio16.6x

Price-To-Earnings vs Fair Ratio: TR1 is good value based on its Price-To-Earnings Ratio (12.9x) compared to the estimated Fair Price-To-Earnings Ratio (16.6x).

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 TR1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€114.14
€109.53
-4.0%
6.5%€124.10€99.09n/a14
Nov ’25€98.94
€104.21
+5.3%
5.5%€117.20€94.13n/a14
Oct ’25€96.99
€100.99
+4.1%
7.1%€112.93€89.44n/a14
Sep ’25€94.95
€101.51
+6.9%
6.8%€111.76€88.52n/a13
Aug ’25€104.26
€106.91
+2.5%
6.3%€115.63€93.43n/a12
Jul ’25€106.48
€108.11
+1.5%
6.9%€116.41€94.06n/a12
Jun ’25€107.36
€106.30
-1.0%
7.3%€115.21€93.09n/a12
May ’25€105.72
€107.58
+1.8%
6.8%€117.10€94.62n/a12
Apr ’25€112.78
€98.47
-12.7%
6.4%€107.07€85.65n/a13
Mar ’25€103.92
€97.31
-6.4%
6.4%€106.73€85.39n/a13
Feb ’25€99.42
€92.64
-6.8%
6.3%€100.97€82.61n/a13
Jan ’25€98.13
€85.62
-12.8%
7.7%€92.62€71.73n/a12
Dec ’24€93.21
€84.07
-9.8%
6.6%€92.80€72.59n/a12
Nov ’24€85.96
€86.90
+1.1%
8.7%€104.09€75.70€98.9412
Oct ’24€100.22
€100.60
+0.4%
11.3%€115.37€77.85€96.9912
Sep ’24€104.60
€100.02
-4.4%
11.2%€114.18€77.05€94.9512
Aug ’24€111.32
€96.85
-13.0%
10.8%€111.86€75.48€104.2612
Jul ’24€102.82
€86.73
-15.6%
11.6%€100.34€66.59€106.4813
Jun ’24€99.87
€88.63
-11.3%
11.6%€102.54€68.05€107.3613
May ’24€101.74
€85.90
-15.6%
15.3%€104.91€61.12€105.7213
Apr ’24€103.98
€88.01
-15.4%
16.1%€112.47€59.92€112.7813
Mar ’24€103.92
€90.49
-12.9%
16.7%€114.08€60.78€103.9213
Feb ’24€107.06
€88.38
-17.4%
15.8%€110.39€59.79€99.4213
Jan ’24€103.10
€95.73
-7.1%
15.4%€117.85€66.00€98.1313
Dec ’23€119.92
€94.06
-21.6%
14.8%€119.37€67.94€93.2112
Nov ’23€109.04
€93.75
-14.0%
13.6%€120.43€70.25€85.9612

Analyst Forecast: Target price is lower than the current share price.

Discover undervalued companies

ORIX

JP¥3.8t

Provides diversified financial services in Japan, the United States, Asia, Europe, Australasia, and the Middle East.

OIX

JP¥20.20

7D

0%

1Y

22.4%

Yeahka

HK$4.5b

An investment holding company, provides payment and business services to merchants and consumers in the People’s Republic of China.

4YE

HK$1.25

7D

-3.8%

1Y

-27.7%

Mutares SE KGaA

€476.1m

A private equity firm specializing in investments in secondary direct, special situations, bridge financing, recapitalization, distressed/vulture, management succession, reorganization, carve-outs, turnarounds, spin-offs and re-funding.

MUX

€22.40

7D

1.1%

1Y

-28.2%