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T. Rowe Price GroupTROW +2.16%81 3-Year ROIIC % is 4.05 as of Dec. 2025, which is 78% below its 10-year median of 18.10. GuruFocus rates TROW with a GF Score™ of 81/100 and a GF Value™ of $122.49 (Fairly Valued). The stock has 9 warning signs investors should review. Among 652 Asset Management companies, T. Rowe Price Group ranks better than 53.99% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
T. Rowe Price Group's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 4.05%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for T. Rowe Price Group's 3-Year ROIIC % or its related term are showing as below:
TROW's 3-Year ROIIC % is ranked better than 53.99% of 652
companies
in the Asset Management industry
Industry Median: 2.15
vs TROW: 4.05
T. Rowe Price Group (NAS:TROW) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
T. Rowe Price Group 3-Year ROIIC % Related Terms
T. Rowe Price Group 3-Year ROIIC % Historical Data
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The historical data trend for T. Rowe Price Group's 3-Year ROIIC % 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.
For the Asset Management subindustry, T. Rowe Price Group's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, T. Rowe Price Group's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where T. Rowe Price Group's 3-Year ROIIC % falls into.
T. Rowe Price Group's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 1902.6432 (Dec. 2025) - 1857.2736 (Dec. 2022) )
/
( 10556 (Dec. 2025) - 9435 (Dec. 2022) )
=
45.3696
/
1121
=
4.05%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
T. Rowe Price Group (TROW) has a 3-Year ROIIC % of 4.05 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on T. Rowe Price Group and its competitors. This is 78% below median its historical median of 18.10. According to the industry distribution chart, T. Rowe Price Group ranks #300 out of 652 companies in the Asset Management industry, placing it in the top 46%.
Is T. Rowe Price Group's 3-Year ROIIC % too high?
T. Rowe Price Group's current 3-Year ROIIC % of 4.05 is 78% below median its 10-year median of 18.10. The Asset Management industry median 3-Year ROIIC % is 2.15. T. Rowe Price Group's value of 4.05 is 88.4% above this industry median. Based on the distribution chart, T. Rowe Price Group ranks #300 out of 652 companies in the Asset Management industry, which is above the industry midpoint. 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 3-Year ROIIC % compare to PFG and ARES?
According to the Asset Management industry distribution chart, T. Rowe Price Group ranks #300 out of 652 companies for 3-Year ROIIC %. This puts T. Rowe Price Group in the upper half of its industry. The industry median 3-Year ROIIC % is 2.15. T. Rowe Price Group's value of 4.05 is 88.4% above this benchmark. While the company's 10-year median is 18.10 vs. the industry median of 2.15, 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 3-Year ROIIC % for an Asset Management company?
The median 3-Year ROIIC % among Asset Management companies is 2.15, based on 652 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. T. Rowe Price Group's current 3-Year ROIIC % of 4.05 is 88.4% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on T. Rowe Price Group and its competitors. For the Asset Management industry, the median 3-Year ROIIC % is 2.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. T. Rowe Price Group's current 3-Year ROIIC % is 4.05, which is 78% below median its own 10-year median of 18.10. 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 $122.49, compared to a current price of $118.58 — trading 3.2% below its estimated fair value. The current 3-Year ROIIC % is 4.05, which is 78% below median its 10-year median of 18.10 and 88.4% above the Asset Management industry median of 2.15. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For T. Rowe Price Group (TROW), the current 3-Year ROIIC % is 4.05 as of Dec. 2025. 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 $118.58 is trading 3.2% below its estimated GF Value™ of $122.49.
GuruFocus considers T. Rowe Price Group to be Fairly Valued.
Key valuation signals for TROW:
3-Year ROIIC %: 4.05 (78% below median its 10-year median of 18.10)
GF Value™: $122.49 vs. price of $118.58 (3.2% below fair value)
Industry Position: 88.4% above the Asset Management median (#300 of 652)
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
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