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T. Rowe Price Group (T. Rowe Price Group) Intrinsic Value: Projected FCF

: $116.76 (As of Today)
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Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-19), T. Rowe Price Group's Intrinsic Value: Projected FCF is $116.76. The stock price of T. Rowe Price Group is $108.525. Therefore, T. Rowe Price Group's Price-to-Intrinsic-Value-Projected-FCF of today is 0.9.

The historical rank and industry rank for T. Rowe Price Group's Intrinsic Value: Projected FCF or its related term are showing as below:

TROW' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.86   Med: 1.4   Max: 1.78
Current: 0.93

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of T. Rowe Price Group was 1.78. The lowest was 0.86. And the median was 1.40.

TROW's Price-to-Projected-FCF is ranked worse than
51.19% of 928 companies
in the Asset Management industry
Industry Median: 0.91 vs TROW: 0.93

T. Rowe Price Group Intrinsic Value: Projected FCF Historical Data

The historical data trend for T. Rowe Price Group's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

T. Rowe Price Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 72.09 85.09 114.06 126.37 116.76

T. Rowe Price Group Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Intrinsic Value: Projected FCF Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 126.37 125.06 121.82 122.70 116.76

Competitive Comparison

For the Asset Management subindustry, T. Rowe Price Group's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


T. Rowe Price Group Price-to-Projected-FCF Distribution

For the Asset Management industry and Financial Services sector, T. Rowe Price Group's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where T. Rowe Price Group's Price-to-Projected-FCF falls into.



T. Rowe Price Group Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get T. Rowe Price Group's Free Cash Flow(6 year avg) = $1,686.30.

T. Rowe Price Group's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Dec23)*0.8)/Shares Outstanding (Diluted Average)
=(10.993856731996*1686.304+9505.1*0.8)/223.900
=116.76

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


T. Rowe Price Group  (NAS:TROW) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

T. Rowe Price Group's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=108.525/116.76223574181
=0.93

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


T. Rowe Price Group Intrinsic Value: Projected FCF Related Terms

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T. Rowe Price Group (T. Rowe Price Group) Business Description

Address
100 East Pratt Street, Baltimore, MD, USA, 21202
T. Rowe Price provides asset-management services for individual and institutional investors. It offers a broad range of no-load U.S. and international stock, hybrid, bond, and money market funds. At the end of October 2023, the firm had $1.312 trillion in managed assets, composed of equity (51%), balanced (33%), fixed-income and money market (13%), and alternatives (3%) offerings. Approximately two thirds of the company's managed assets are held in retirement-based accounts, which provides T. Rowe Price with a somewhat stickier client base than most of its peers. The firm also manages private accounts, provides retirement planning advice, and offers discount brokerage and trust services. The company is primarily a U.S.-based asset manager, deriving just over 9% of its AUM from overseas.
Executives
Higginbotham Robert C.t. officer: Vice President 100 E. PRATT STREET, BALTIMORE MD 21202
Thomson Andrew Justin Mackenzie officer: Vice President 100 E. PRATT STREET, BALTIMORE MD 21202
William P Donnelly director C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Andrew C. Mccormick officer: Vice President 100 E. PRATT STREET, BALTIMORE MD 21202
Cynthia F Smith director 100 E. PRATT STREET, BALTIMORE MD 21202
Jessica M Hiebler officer: Principal Accounting Officer 100 E. PRATT STREET, BALTIMORE MD 21202
William J Stromberg officer: Vice President 100 E. PRATT STREET, BALTIMORE MD 21202
Kimberly H Johnson officer: COO and VP C/O FANNIE MAE, 1100 15TH STREET, NW, WASHINGTON DC 20005
Joshua B Nelson officer: Vice President 100 E. PRATT STREET, BALTIMORE MD 21202
Glenn R August director, officer: Vice President C/O OHA - 1114 AVENUE OF THE AMERICAS, 27TH FLOOR, NEW YORK NY 10036
Eileen P Rominger director 100 E. PRATT STREET, BALTIMORE MD 21202
Sebastien Page officer: Vice President 100 E. PRATT STREET, BALTIMORE MD 21202
Jennifer B Dardis other: CFO and VP 100 E. PRATT STREET, BALTIMORE MD 21202
Mary K Bush director 3509 WOODBINE STREET, CHEVY CHASE MD 20815
W. Sharps Robert officer: Vice President 100 E. PRATT STREET, BALTIMORE MD 21202