T. Rowe Price Group, Inc.

NasdaqGS:TROW Stock Report

Market Cap: US$24.7b

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

  • PM 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 ($110.86) is trading below our estimate of fair value ($160.5)

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/Revenue3.7x
Enterprise Value/EBITDA9.5x
PEG Ratio20x

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 Average14.2x
STT State Street
12.2x7.3%US$22.0b
NTRS Northern Trust
15.9x10.0%US$16.7b
BK Bank of New York Mellon
13.4x9.2%US$42.0b
BEN Franklin Resources
15.4x9.6%US$14.1b
TROW T. Rowe Price Group
14.2x0.7%US$24.7b

Price-To-Earnings vs Peers: TROW is good value based on its Price-To-Earnings Ratio (14.2x) compared to the peer average (14.2x).


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/a15.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: TROW is good value based on its Price-To-Earnings Ratio (14.2x) compared to the US Capital Markets industry average (19.1x).


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 Ratio14.2x
Fair PE Ratio14.3x

PM vs Fair Ratio: TROW is good value based on its Price-To-Earnings Ratio (14.2x) compared to the estimated Fair Price-To-Earnings Ratio (14.3x).


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$110.86
US$104.85
-5.4%
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$83.00n/a12
Sep ’24US$112.90
US$107.75
-4.6%
11.2%US$123.00US$83.00n/a12
Aug ’24US$121.09
US$106.50
-12.0%
10.8%US$123.00US$83.00n/a12
Jul ’24US$112.02
US$95.08
-15.1%
11.6%US$110.00US$73.00n/a13
Jun ’24US$108.38
US$95.08
-12.3%
11.6%US$110.00US$73.00n/a13
May ’24US$111.31
US$94.15
-15.4%
15.3%US$115.00US$67.00n/a13
Apr ’24US$112.90
US$95.46
-15.4%
16.1%US$122.00US$65.00n/a13
Mar ’24US$111.13
US$96.77
-12.9%
16.7%US$122.00US$65.00n/a13
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
Sep ’23US$119.00
US$110.64
-7.0%
14.9%US$138.00US$84.00US$112.9011
Aug ’23US$123.42
US$109.00
-11.7%
13.3%US$135.00US$84.00US$121.0911
Jul ’23US$115.31
US$127.91
+10.9%
14.4%US$156.00US$100.00US$112.0211
Jun ’23US$123.89
US$138.73
+12.0%
11.2%US$160.00US$117.00US$108.3811
May ’23US$123.04
US$141.17
+14.7%
18.5%US$195.00US$90.00US$111.3112
Apr ’23US$152.86
US$160.79
+5.2%
15.3%US$198.00US$116.50US$112.9012
Mar ’23US$139.56
US$162.38
+16.3%
14.9%US$198.00US$116.50US$111.1312
Feb ’23US$155.75
US$163.79
+5.2%
15.1%US$198.00US$116.50US$120.0412

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


Discover undervalued companies

Price7D1Y
Mkt CapP/EGrowth
Price7D1Y
Mkt CapP/EGrowth
Price7D1Y
Mkt CapP/EGrowth
Price7D1Y
Mkt CapP/EGrowth
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.