Based on the provided data and current market conditions, here's a concise analysis of TROW's valuation:
Technical Analysis
The stock is currently trading at $110.12, showing bearish momentum with RSI at 39.00 indicating oversold conditions. The stock is trading below its 20-day moving average of $113.22, suggesting near-term weakness.
Valuation Metrics
Current valuation multiples show:
- P/E: 12.35x
- EV/EBITDA: 8.52x
- P/S: 3.56x
- P/B: 2.44x
- Dividend Yield: 4.39%
These metrics have trended lower throughout 2024, indicating the stock has become relatively cheaper.
Recent Performance
TROW recently reported Q4 earnings that missed estimates. The company posted earnings of $1.92 per share versus expectations of $2.20, though revenue grew 11.1% year-over-year to $1.824 billion.
Analyst Sentiment
The stock has reached analyst target prices, with the average 12-month target at $111.14. Analysts have mixed views, with targets ranging from $91 to $126, suggesting uncertainty about valuation levels.
Conclusion
TROW appears fairly valued to slightly overvalued at current levels considering:
- Trading above key moving averages
- Valuation metrics near industry averages
- Mixed earnings performance
- Analyst price targets suggesting limited upside
- Recent bearish technical indicators
The stock's attractive dividend yield provides some support, but current market conditions and technical indicators suggest caution.