TROW Intrinsic Value – T. Rowe Price: Transformation Lags, Stock Overvalued

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However, recently it has been facing a few difficulties. The transformation progress of the company has been unsatisfactory and the stock is overvalued. Despite attempts to improve the company’s performance, the results have been far from those expected. The costs associated with the transition have been too high and the increase in profits have not been sufficient to bring the stock to more reasonable levels.

As a result, investors should be aware that T. Rowe Price ($NASDAQ:TROW) may not be a great buy right now. Although the company has the potential to improve its performance, the stock is overvalued and investors should carefully assess the risks before investing. It is therefore recommended that investors do their research before deciding to invest in T. Rowe Price.

Price History

Monday marked a difficult day for T. ROWE PRICE stock as it opened at $98.0 and closed at $97.2, down by 1.1% from last closing price of 98.3. This represents a continuation of the lagging stock performance the company has seen in recent months, as its shares have failed to keep up with the advancing market. This underperformance indicates that the stock may be overvalued in the current climate, despite the company’s efforts to drive transformation. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for TROW. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for TROW. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for TROW. More…

Key Ratios Snapshot

Some of the financial key ratios for TROW are shown below. More…

Analysis – TROW Intrinsic Value

At GoodWhale, we recently analyzed the wellbeing of T. ROWE PRICE. Through our proprietary Valuation Line, we have calculated that the intrinsic value of T. ROWE PRICE share is around $143.7. However, the current market price of T. ROWE PRICE stock is at $97.2, thus it is currently undervalued by 32.3%. This presents a great opportunity for investors to purchase T. ROWE PRICE’s shares at a discounted price and potentially benefit from its potential long-term growth. More…

Peers

The firm provides its services to individuals, institutions, retirement plans, trusts, and partnerships. It launches and manages equity, fixed income, balanced, and commodity mutual funds. The company was founded in 1937 and is headquartered in Baltimore, Maryland. As of December 31, 2017, T. Rowe Price Group Inc had $934.2 billion in assets under management (AUM). Federated Hermes Inc, Franklin Resources Inc, and ABC arbitrage SA are all competitors of T. Rowe Price Group Inc. Federated Hermes Inc is a global investment manager that offers a range of investment products, including equities, fixed income, and alternatives. As of December 31, 2017, Federated Hermes Inc had $590.6 billion in AUM. Franklin Resources Inc is a global investment management company that provides investment management and related services to institutional and individual investors. As of June 30, 2018, Franklin Resources Inc had $737.2 billion in AUM. ABC arbitrage SA is a French asset management company that specializes in convertible bonds and global equity markets arbitrage. As of December 31, 2017, ABC arbitrage SA had €5.4 billion in assets under management.

– Federated Hermes Inc ($NYSE:FHI)

Federated Hermes Inc. is a publicly traded company with a market capitalization of $2.86 billion as of 2022. The company has a return on equity of 22.41%. Federated Hermes Inc. is a financial services company that provides asset management and related services to individuals, families, institutions, and businesses. The company offers a broad range of investment strategies and products, including equity, fixed income, and alternative investments.

– Franklin Resources Inc ($NYSE:BEN)

Franklin Resources Inc is a publicly owned asset management holding company based in San Mateo, California. The company, through its subsidiaries, manages mutual funds and other investment portfolios. It also provides investment management and advisory services to institutional clients. As of December 31, 2020, Franklin Resources Inc had $744.2 billion in assets under management.

The company’s market cap is 11.69B as of 2022. The company has a return on equity of 12.45%. The company’s primary business is managing mutual funds and other investment portfolios. The company also provides investment management and advisory services to institutional clients.

– ABC arbitrage SA ($LTS:0OPJ)

ABC arbitrage SA is a French holding company that engages in the provision of financial services. The company operates through the following segments: Asset Management, Corporate Finance, and Market Making. The Asset Management segment offers investment products and services to individuals, professionals, and institutional clients. The Corporate Finance segment provides financing and advisory services to companies. The Market Making segment deals with market making activities in listed securities. ABC arbitrage SA was founded in 1991 and is headquartered in Paris, France.

Summary

T. Rowe Price is a global investment management firm with a long-standing history of providing quality financial advice and portfolio management. Recently, the company’s stock has been deemed overvalued due to its slow rate of transformation and modernization. As an investor, it is important to understand the current market forces and trends that could impact the performance of T. Rowe Price’s investments. Analyzing the company’s financial statements, risk management strategies, management team, and competitive advantage can provide valuable insight into the current status and future outlook of T. Rowe Price.

Additionally, investors should consider the company’s business model, identify any weaknesses or risks, and track any relevant industry news to gain a better understanding of the company’s potential for long-term growth.