T. Rowe Price Group, Inc. (TROW) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Financial Services · Asset Management
Is T. Rowe Price Group, Inc. a safe investment right now?
T. Rowe Price Group, Inc. is in the Financial Services sector — Altman Z-Score does not apply to this type of company. Our fair value estimate is $94.25 (Fairly Valued).
Why the Altman Z-Score does not apply to T. Rowe Price Group, Inc.
The Altman Z-Score is designed for manufacturing and non-financial companies. It uses ratios like Working Capital / Total Assets and Revenue / Total Assets that produce misleading results for Financial Services companies.
- Banks hold massive assets (loans) that inflate Total Assets, making WC/TA nearly zero — a false distress signal
- Utilities carry high regulated debt by design — the model misreads leverage as risk
- REITs use Funds From Operations (FFO), not Free Cash Flow — standard cash flow analysis doesn't apply
Altman Z-Score is designed for manufacturing companies and does not apply to banks, utilities, or REITs.
Note: A sector-specific financial health model for Financial Services companies is planned for a future update.
What is T. Rowe Price Group, Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Analyst Consensus Target | $94.25 | 12 Wall Street analysts |
| Analyst High / Low | $107.00 / $73.00 | Range of analyst price targets |
| Price / Book | 2.02x | Current market valuation vs book value |
| Return on Equity | 18.8% | Profitability relative to shareholder equity |
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Why standard moat analysis does not apply to T. Rowe Price Group, Inc.
Our standard moat model uses ROIC stability, gross margin trends, and switching costs — metrics designed for product and service companies. Financial Services companies compete on fundamentally different dimensions.
- Banks — moat comes from deposit cost advantage, net interest margin stability, and fee income diversification
- Utilities — moat is a regulatory monopoly with guaranteed rate of return on invested capital
- REITs — moat comes from property portfolio quality, location, tenant mix, and cap rate advantages
Standard moat analysis (ROIC/gross margin/switching costs) does not reliably apply to Financial Services companies. Banks compete on net interest margin, utilities on regulated returns, and REITs on occupancy and cap rates.
Note: A sector-specific competitive analysis for Financial Services companies is planned for a future update.
Is T. Rowe Price Group, Inc.'s dividend safe?
Can T. Rowe Price Group, Inc. afford its dividend?
Payout ratio is 55.0%. FCF covers the dividend 1.9x. 41 consecutive years of payments.
T. Rowe Price Group, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $7.3B | $7.1B | $6.5B | Rising |
| Net Income | $2.1B | $2.1B | $1.6B | Rising |
| Free Cash Flow | $1.5B | $1.3B | $2.1B | Declining |
| Gross Margin | 51.3% | 51.9% | 55.0% | Declining |
Recent events that affect our TROW analysis
TROW earnings report scheduled
Upcoming report. Consensus EPS estimate: $2.36. Revenue estimate: $1.87B. Our current Fair Value: $94.25 — a significant beat or miss could shift this estimate.
TROW analyst consensus: 0% bullish (0 of 13 analysts)
0 Strong Buy, 0 Buy, 9 Hold, 1 Sell, 3 Strong Sell. Consensus target: $94.25 (6.0% downside). Compare with our independent Fair Value: $94.25.
TROW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TROW paid $1.3000/share dividend
Dividend Safety Grade: A. Payout ratio: 55.0%.
TROW filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
TROW missed EPS estimates by 1.0%
Reported EPS: $2.44 vs estimate $2.46. Our Fair Value of $94.25 may face downward pressure if the trend continues.
TROW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TROW paid $1.2700/share dividend
Dividend Safety Grade: A. Payout ratio: 55.0%.
TROW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TROW beat EPS estimates by 10.5%
Reported EPS: $2.81 vs estimate $2.54. Earnings strength supports our Fair Value of $94.25 (6.0% below current price).
TROW filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
TROW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TROW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TROW paid $1.2700/share dividend
Dividend Safety Grade: A. Payout ratio: 55.0%.
TROW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TROW beat EPS estimates by 4.9%
Reported EPS: $2.24 vs estimate $2.13. Earnings strength supports our Fair Value of $94.25 (6.0% below current price).
TROW filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
TROW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TROW paid $1.2700/share dividend
Dividend Safety Grade: A. Payout ratio: 55.0%.
TROW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TROW beat EPS estimates by 4.7%
Reported EPS: $2.23 vs estimate $2.13. Earnings strength supports our Fair Value of $94.25 (6.0% below current price).
TROW filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
TROW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TROW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TROW paid $1.2700/share dividend
Dividend Safety Grade: A. Payout ratio: 55.0%.
TROW filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
TROW missed EPS estimates by 4.1%
Reported EPS: $2.12 vs estimate $2.21. Our Fair Value of $94.25 may face downward pressure if the trend continues.
TROW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about T. Rowe Price Group, Inc.
What is T. Rowe Price Group, Inc. stock price today?
T. Rowe Price Group, Inc. (TROW) stock price is $100.24 as of the latest market close, traded on the NASDAQ exchange.
What does T. Rowe Price Group, Inc. do?
T. Rowe Price Group, Inc. is a publicly owned investment manager.
What is T. Rowe Price Group, Inc. market cap?
T. Rowe Price Group, Inc. has a market capitalization of $21.86B, classifying it as a large-cap stock in the Financial Services sector.
What sector and industry is TROW in?
T. Rowe Price Group, Inc. operates in the Financial Services sector, specifically within the Asset Management industry. It trades on the NASDAQ under the ticker symbol TROW.
Is TROW stock overvalued or undervalued?
Based on our valuation model, T. Rowe Price Group, Inc. trades 6.4% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $94.25
- Current Price: $100.24
- Valuation Zone: Fairly Valued
What is TROW stock forecast and analyst target price?
Based on 12 Wall Street analysts, the consensus price target for T. Rowe Price Group, Inc. is $94.25, implying downside of 6.0% from the current price.
- Analyst High Target: $107.00
- Analyst Low Target: $73.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is T. Rowe Price Group, Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for T. Rowe Price Group, Inc.:
- Revenue growth (current year est.): 2.2%
- EPS growth (current year est.): -2.7%
- Revenue growth (next year est.): 1.4%
- EPS growth (next year est.): 1.1%
What are T. Rowe Price Group, Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $7.3B | Rising |
| Net Income | $2.1B | Rising |
| Free Cash Flow | $1.5B | Declining |
| Gross Margin | 51.3% | Declining |
What is TROW's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 10.8x
- Forward P/E (next 12 months est.): 10.5x
How volatile is TROW stock?
T. Rowe Price Group, Inc. has a beta of 1.52, meaning it is significantly more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does T. Rowe Price Group, Inc. have?
T. Rowe Price Group, Inc.'s balance sheet shows:
- Total Cash: $3.38B
- Total Debt: $469.0M
- Net Cash Position: $2.91B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is T. Rowe Price Group, Inc.'s free cash flow?
T. Rowe Price Group, Inc. generated $1.87B in trailing twelve-month free cash flow (from $1.75B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does T. Rowe Price Group, Inc. pay a dividend, and is it safe?
Yes, T. Rowe Price Group, Inc. pays a regular dividend. Here are the key metrics:
- Dividend Yield: 5.1%
- Payout Ratio: 55.0%
- Consecutive Years Paid: 41
- 5-Year Dividend Growth: -29.2%
- FairValueLabs Safety Grade: A
Is T. Rowe Price Group, Inc. financially healthy?
The Altman Z-Score — the standard bankruptcy prediction model — is not applicable to Financial Services companies like T. Rowe Price Group, Inc.. The formula uses ratios designed for manufacturing firms that produce misleading results for banks, utilities, and REITs.
Does T. Rowe Price Group, Inc. have a competitive moat?
Our standard moat model (based on ROIC, gross margins, and switching costs) does not apply to Financial Services companies. These firms compete on fundamentally different dimensions such as regulatory advantages, deposit cost structures, or property portfolios.
What is TROW's return on equity (ROE)?
T. Rowe Price Group, Inc.'s return on equity is 18.8%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy TROW stock?
TROW shares can be purchased through any brokerage account that provides access to the NASDAQ. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol TROW
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is TROW a value stock or speculative?
FairValueLabs classifies T. Rowe Price Group, Inc. as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of T. Rowe Price Group, Inc.?
The current CEO of T. Rowe Price Group, Inc. is Mr. Robert W. Sharps C.F.A., CPA.
What is TROW's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $9.24
- Forward EPS (next 12 months est.): $9.56
- Analyst consensus EPS (this year): $9.46
- Analyst consensus EPS (next year): $9.56
Other Financial Services companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
TROW analysis methodology: How we calculate fair value, Z-Scores, and moat ratings