TROW Relative Valuation
TROW's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, TROW is overvalued; if below, it's undervalued.
Historical Valuation
T Rowe Price Group Inc (TROW) is now in the Undervalued zone, suggesting that its current forward PE ratio of 10.32 is considered Undervalued compared with the five-year average of 14.34. The fair price of T Rowe Price Group Inc (TROW) is between 127.43 to 174.37 according to relative valuation methord. Compared to the current price of 105.79 USD , T Rowe Price Group Inc is Undervalued By 16.98%.
Relative Value
Fair Zone
127.43-174.37
Current Price：105.79
16.98%
Undervalued
10.30
PE
1Y
3Y
5Y
Trailing
Forward
7.15
EV/EBITDA
T Rowe Price Group Inc. (TROW) has a current EV/EBITDA of 7.15. The 5-year average EV/EBITDA is 9.65. The thresholds are as follows: Strongly Undervalued below 6.07, Undervalued between 6.07 and 7.86, Fairly Valued between 11.43 and 7.86, Overvalued between 11.43 and 13.22, and Strongly Overvalued above 13.22. The current Forward EV/EBITDA of 7.15 falls within the Undervalued range.
7.91
EV/EBIT
T Rowe Price Group Inc. (TROW) has a current EV/EBIT of 7.91. The 5-year average EV/EBIT is 10.41. The thresholds are as follows: Strongly Undervalued below 6.44, Undervalued between 6.44 and 8.42, Fairly Valued between 12.39 and 8.42, Overvalued between 12.39 and 14.37, and Strongly Overvalued above 14.37. The current Forward EV/EBIT of 7.91 falls within the Undervalued range.
3.04
PS
T Rowe Price Group Inc. (TROW) has a current PS of 3.04. The 5-year average PS is 4.15. The thresholds are as follows: Strongly Undervalued below 2.04, Undervalued between 2.04 and 3.09, Fairly Valued between 5.20 and 3.09, Overvalued between 5.20 and 6.26, and Strongly Overvalued above 6.26. The current Forward PS of 3.04 falls within the Undervalued range.
0.00
P/OCF
T Rowe Price Group Inc. (TROW) has a current P/OCF of 0.00. The 5-year average P/OCF is 9.19. The thresholds are as follows: Strongly Undervalued below -0.04, Undervalued between -0.04 and 4.58, Fairly Valued between 13.80 and 4.58, Overvalued between 13.80 and 18.41, and Strongly Overvalued above 18.41. The current Forward P/OCF of 0.00 falls within the Undervalued range.
0.00
P/FCF
T Rowe Price Group Inc. (TROW) has a current P/FCF of 0.00. The 5-year average P/FCF is 12.62. The thresholds are as follows: Strongly Undervalued below 5.15, Undervalued between 5.15 and 8.89, Fairly Valued between 16.36 and 8.89, Overvalued between 16.36 and 20.09, and Strongly Overvalued above 20.09. The current Forward P/FCF of 0.00 falls within the Strongly Undervalued range.
T Rowe Price Group Inc (TROW) has a current Price-to-Book (P/B) ratio of 2.14. Compared to its 3-year average P/B ratio of 2.48 , the current P/B ratio is approximately -13.77% higher. Relative to its 5-year average P/B ratio of 3.26, the current P/B ratio is about -34.37% higher. T Rowe Price Group Inc (TROW) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 5.41%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 6.28% , the current FCF yield is about -100.00% lower.
2.14
P/B
Median3y
2.48
Median5y
3.26
5.10
FCF Yield
Median3y
5.41
Median5y
6.28
Competitors Valuation Multiple
The average P/S ratio for TROW's competitors is , providing a benchmark for relative valuation. T Rowe Price Group Inc Corp (TROW) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 6.56%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TROW decreased by 4.16% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.83B to 1.95B.
The secondary factor is the Margin Expansion, contributed 0.60%to the performance.
Overall, the performance of TROW in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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