T. Rowe Price Group, Inc. (TROW) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+28.6%

$137.84

vs $107.21 price

Levered DCF

$101.39

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

5.93

Safe zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	11.06×	12.32×	13.84×	16.21×	14.84×	15.02×	13.81×	12.46×
P/B	2.11×	2.44×	2.54×	2.79×	4.94×	4.49×	4.04×	3.65×
P/S	3.13×	3.55×	3.74×	3.8×	5.81×	5.58×	5.11×	4.16×
EV / EBITDA	6.68×	7.66×	8.88×	7.39×	10.97×	11.12×	10.49×	8.35×
Gross margin	62.7%	51.9%	49.6%	55.0%	61.0%	57.8%	57.5%	58.2%
Operating margin	29.9%	32.9%	30.7%	36.6%	48.4%	44.2%	42.5%	44.0%
Net margin	28.5%	29.6%	27.7%	24.0%	40.2%	38.2%	37.9%	34.2%
Current ratio	73.08×	8.01×	5.88×	5.53×	5.07×	11.06×	9.86×	6.99×
Debt / equity	0.08×	0.03×	0.03×	0.04×	0.03×	0.02×	0.02×	0×
Interest coverage	0×	0×	0×	0×	0×	0×	0×	0×
Dividend yield	5.0%	4.5%	4.6%	4.5%	3.8%	2.4%	2.6%	3.1%
Payout ratio	54.8%	54.1%	62.7%	71.1%	55.2%	35.6%	34.4%	37.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	19.2%	20.3%	18.8%	17.6%	34.2%	30.8%	30.0%	30.0%
Return on invested capital	11.5%	13.6%	12.4%	15.9%	24.0%	20.6%	20.3%	23.6%
Return on assets	14.3%	15.6%	14.6%	13.4%	24.6%	22.3%	22.8%	23.9%
Free cash flow yield	6.5%	5.0%	3.8%	8.6%	7.2%	4.9%	4.6%	6.5%
Earnings yield	9.1%	8.3%	7.4%	6.3%	6.9%	6.8%	7.4%	8.2%
Enterprise value	$20.4B	$22.8B	$22.4B	$23.2B	$43.3B	$32.6B	$27B	$20.9B
Net debt / EBITDA	-0.83×	-0.8×	-0.7×	-0.45×	-0.32×	-0.68×	-0.63×	-0.57×
Cash conversion cycle (days)	36	7	-2	-9	-2	37	9	0