T. Rowe Price (TROW): Evaluating Valuation After OpenAI Investment and Goldman Sachs Partnership

T. Rowe Price Group (TROW) is in the spotlight after participating as a major investor in OpenAI’s headline-making secondary share sale. The firm also unveiled a substantial partnership with Goldman Sachs, which has sparked fresh conversation about its growth strategy.

See our latest analysis for T. Rowe Price Group.

T. Rowe Price Group’s share price recently closed at $103.28, nudging higher after the announcement of its OpenAI investment and co-branded partnership with Goldman Sachs. While the one-year total shareholder return is flat, multi-year returns hint at some momentum returning after a sluggish stretch, especially as the industry shifts toward more innovative structures and partnerships.

If the action around TROW has you curious, now is a smart time to broaden your search and discover fast growing stocks with high insider ownership

Yet with shares trading just shy of analyst price targets and metrics showing only modest valuation discounts, investors must weigh whether recent partnerships and AI-driven headlines truly signal new upside or if the best of T. Rowe Price’s future growth is already built in.

Most Popular Narrative: 2% Undervalued

The most widely followed analysis now places T. Rowe Price Group’s fair value just above its last close, pointing to a stock that may be modestly mispriced in the market. With a documented margin of undervaluation, this narrative commands attention from both bulls and skeptics looking for hidden upside.

“Ongoing investment in technology, digital platforms, and artificial intelligence is expected to increase operational efficiency and client customization at scale, which should reduce operating expenses and support improved net margins and profitability over time.”

Read the complete narrative.

Curious what’s powering this valuation? The narrative relies on bold assumptions about margin expansion, points to strategic reinvestment, and quietly includes accelerating revenue from new growth engines. What influenced the model, and could it surprise you? See what drives this fair value for yourself.

Result: Fair Value of $105.38 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent outflows from high-fee products and increasing competition from low-cost passive strategies could present challenges to T. Rowe Price’s long-term growth narrative.

Find out about the key risks to this T. Rowe Price Group narrative.

Build Your Own T. Rowe Price Group Narrative

If you want to look beyond the consensus or put your own theory to the test, you’re just a few minutes away from building one yourself. Do it your way

A great starting point for your T. Rowe Price Group research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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