T. Rowe Price GroupTROW -1.83%81 Return-on-Tangible-Equity is 25.20% as of Mar. 2026, which is 19% below its 10-year median of 31.11. GuruFocus rates TROW with a GF Score™ of 81/100 and a GF Value™ of $121.70 (Fairly Valued). The stock has 9 warning signs investors should review. Among 1,588 Asset Management companies, T. Rowe Price Group ranks better than 84.57% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. T. Rowe Price Group's annualized net income for the quarter that ended in Mar. 2026 was $1,993 Mil. T. Rowe Price Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $7,909 Mil. Therefore, T. Rowe Price Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 25.20%.
The historical rank and industry rank for T. Rowe Price Group's Return-on-Tangible-Equity or its related term are showing as below:
TROW'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 27.06 Med: 31.11 Max: 49.5
Current: 27.06
During the past 13 years, T. Rowe Price Group's highest Return-on-Tangible-Equity was 49.50%. The lowest was 27.06%. And the median was 31.11%.
TROW's Return-on-Tangible-Equity is ranked better than 84.57% of 1588
companies
in the Asset Management industry
Industry Median: 7.205
vs TROW: 27.06
T. Rowe Price Group (NAS:TROW) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
T. Rowe Price Group Return-on-Tangible-Equity Related Terms
T. Rowe Price Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for T. Rowe Price Group's Return-on-Tangible-Equity 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.
T. Rowe Price Group Return-on-Tangible-Equity Chart
TROW vs PFG, ARES, RJF: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, T. Rowe Price Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, T. Rowe Price Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where T. Rowe Price Group's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 25.20% mean?
T. Rowe Price Group (TROW) has a Return-on-Tangible-Equity of 25.20% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on T. Rowe Price Group and its competitors. This is 19% below median its historical median of 31.11. Over the past decade, T. Rowe Price Group's Return-on-Tangible-Equity has ranged from 27.06 to 49.50. According to the industry distribution chart, T. Rowe Price Group ranks #245 out of 1588 companies in the Asset Management industry, placing it in the top 15.4%.
Is T. Rowe Price Group's Return-on-Tangible-Equity too high?
T. Rowe Price Group's current Return-on-Tangible-Equity of 25.20% is 19% below median its 10-year median of 31.11. Over the past 10 years, this metric has ranged from a low of 27.06 to a high of 49.50. The Asset Management industry median Return-on-Tangible-Equity is 7.21. T. Rowe Price Group's value of 25.20% is 249.8% above this industry median. Based on the distribution chart, T. Rowe Price Group ranks #245 out of 1588 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, T. Rowe Price Group has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does T. Rowe Price Group's Return-on-Tangible-Equity compare to PFG and ARES?
According to the Asset Management industry distribution chart, T. Rowe Price Group ranks #245 out of 1588 companies for Return-on-Tangible-Equity. This places T. Rowe Price Group in the top 15% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.21. T. Rowe Price Group's value of 25.20% is 249.8% above this benchmark. Historically, T. Rowe Price Group's own Return-on-Tangible-Equity has ranged from 27.06 to 49.50 over the past decade. While the company's 10-year median is 31.11 vs. the industry median of 7.21, T. Rowe Price Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Asset Management company?
The median Return-on-Tangible-Equity among Asset Management companies is 7.21, based on 1,588 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. T. Rowe Price Group's current Return-on-Tangible-Equity of 25.20% is 249.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on T. Rowe Price Group and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. T. Rowe Price Group's current Return-on-Tangible-Equity is 25.20%, which is 19% below median its own 10-year median of 31.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is T. Rowe Price Group stock overvalued right now?
Based on GuruFocus' analysis, T. Rowe Price Group (TROW) is currently considered Fairly Valued. The stock's GF Value™ is $121.70, compared to a current price of $117.96 — trading 3.1% below its estimated fair value. The current Return-on-Tangible-Equity is 25.20%, which is 19% below median its 10-year median of 31.11 and 249.8% above the Asset Management industry median of 7.21. T. Rowe Price Group's overall GF Score™ is 81/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For T. Rowe Price Group (TROW), the current Return-on-Tangible-Equity is 25.20% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is T. Rowe Price Group (TROW) Overvalued in 2026?
Based on GuruFocus' analysis, T. Rowe Price Group stock appears to be undervalued.
The current stock price of $117.96 is trading 3.1% below its estimated GF Value™ of $121.70.
GuruFocus considers T. Rowe Price Group to be Fairly Valued.
Key valuation signals for TROW:
Return-on-Tangible-Equity: 25.20% (19% below median its 10-year median of 31.11)
GF Value™: $121.70 vs. price of $117.96 (3.1% below fair value)
Industry Position: 249.8% above the Asset Management median (#245 of 1588)
No single metric tells the full story. See the TROW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
T. Rowe Price provides asset management services for individual and institutional investors. It offers a broad range of no-load US and international stock, hybrid, bond, and money market funds. At the end of May 2026, the firm had $1.892 trillion in managed assets, composed of equity (49%), balanced (37%), fixed-income and money market (11%), and alternative (3%) offerings. Approximately two-thirds of managed assets are held in retirement-based accounts, which provide 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 US-based asset manager, deriving less than 10% of its AUM from overseas.
81GF Score
Get the complete analysis for TROW
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TROW has been successfully added to your 
