TROW Stock Fair Value Calculation – Navigating the Complexity of T. Rowe Price’s Narratives with Ritu Vohora
November 3, 2023
🌥️Trending News
Ritu Vohora of T. Rowe Price ($NASDAQ:TROW) has seen firsthand the complexity of telling the story behind a stock. With her expertise, she has the ability to look at a company from multiple perspectives. From individual investors to large institutions, she can take the same set of facts and explain why different investors would have different perspectives on the same story. It offers a broad range of financial services, including investment management, retirement planning, estate planning, financial planning, and more.
Through strategic investments, the firm builds long-term relationships with its clients, striving to help them meet their financial goals. With its diverse range of products and services, T. Rowe Price is able to provide the guidance needed to navigate even the most complex investing decisions.
Market Price
Thursday saw T. ROWE PRICE stock open at $92.6 and close at $94.3, representing an increase of 3.6% from its closing price of 91.0 the previous day. This marked a significant development for the company, and for investors looking to capitalize on the gains. To make sense of the complex narrative behind the financial success of T. ROWE PRICE, Ritu Vohora, Chief Executive Officer and President of T. ROWE PRICE Group, Inc., provided insights on navigating the complexities of the market. Vohora discussed the importance of understanding global macroeconomic trends, analyzing the company’s competitive environment, and positioning its investments to unlock value for shareholders.
She also highlighted the company’s commitment to delivering long-term performance and meeting its fiduciary duty to clients. By offering a comprehensive look at T. ROWE PRICE’s approach to investing, Vohora’s insights served as a valuable resource to investors looking to take advantage of the company’s success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for TROW. More…
| Total Revenues | Net Income | Net Margin |
| 6.26k | 1.53k | 22.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for TROW. More…
| Operations | Investing | Financing |
| 1.77k | -41.5 | -2.08k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for TROW. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 12.62k | 2.17k | 41.25 |
Key Ratios Snapshot
Some of the financial key ratios for TROW are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.7% | -7.5% | 31.6% |
| FCF Margin | ROE | ROA |
| 24.3% | 13.5% | 9.8% |
Analysis – TROW Stock Fair Value Calculation
At GoodWhale, we have been analyzing T. ROWE PRICE’s wellbeing using our proprietary tools. Through our research, we have determined that the intrinsic value of T. ROWE PRICE shares is around $146.5, which was calculated using our Valuation Line. Currently, T. ROWE PRICE stock is being traded at $94.3, which represents a 35.6% undervaluation. This presents an attractive opportunity for investors to purchase shares of this company at a discounted rate, which could lead to impressive returns in the future. 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 asset management firm that prides itself on offering a variety of mutual funds, ETFs, and other investments. Ritu Vohora, the Chief Investment Officer at T. Rowe Price, recently made a statement about conflicting narratives in the market. She noted that while stock prices have moved up in tandem with positive economic news, there are still many unknowns and the potential for a “ticking time bomb” of uncertainty.
Vohora urges investors to practice prudent portfolio management and diversification to mitigate risk, while also remaining focused on the long-term picture. She emphasizes that investors should continue to view the markets through a lens of fundamentals and not get carried away by short-term price movements.
