Latest Ratios: P/E Ratio 11.3x · EV/EBITDA 7.6x · ROE 17.8%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $22.4B | $22.9B | $25.3B | $24.2B | $24.8B | $45.0B | $35.0B | $29.1B | $22.8B | $25.7B | $18.8B |
| Enterprise Value | $19.9B | $20.4B | $22.9B | $22.5B | $23.3B | $43.7B | $33.0B | $27.4B | $21.4B | $23.8B | $17.6B |
| P/E Ratio → | 11.30 | 11.07 | 12.36 | 13.88 | 16.28 | 14.99 | 15.17 | 14.00 | 12.70 | 17.58 | 15.84 |
| P/S Ratio | 3.06 | 3.13 | 3.56 | 3.75 | 3.82 | 5.86 | 5.64 | 5.17 | 4.24 | 5.30 | 4.40 |
| P/B Ratio | 1.94 | 1.90 | 2.21 | 2.35 | 2.56 | 4.39 | 3.78 | 3.54 | 3.32 | 3.77 | 3.31 |
| P/FCF | 15.15 | 15.49 | 20.01 | 26.57 | 11.67 | 14.00 | 20.54 | 22.06 | 15.70 | 592.59 | 848.54 |
| P/OCF | 12.78 | 13.07 | 14.98 | 19.86 | 10.50 | 13.03 | 18.24 | 19.09 | 14.07 | 112.06 | 110.48 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.79 | 3.23 | 3.48 | 3.60 | 5.70 | 5.32 | 4.88 | 3.98 | 4.91 | 4.12 |
| EV / EBITDA | 7.59 | 7.78 | 8.06 | 9.10 | 7.73 | 11.17 | 11.24 | 10.64 | 8.48 | 10.57 | 9.45 |
| EV / EBIT | 9.09 | 8.34 | 9.24 | 11.02 | 9.35 | 11.68 | 12.02 | 11.49 | 9.11 | 11.57 | 9.80 |
| EV / FCF | — | 13.79 | 18.13 | 24.64 | 11.00 | 13.61 | 19.36 | 20.81 | 14.72 | 548.75 | 794.26 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 62.7% | 62.7% | 51.9% | 49.6% | 55.0% | 61.0% | 57.8% | 57.5% | 58.2% | 57.3% | 56.4% |
| Operating Margin | 29.9% | 29.9% | 32.9% | 30.7% | 36.6% | 48.4% | 44.2% | 42.5% | 44.0% | 43.4% | 40.5% |
| Net Profit Margin | 28.5% | 28.5% | 29.6% | 27.7% | 24.0% | 40.2% | 38.2% | 37.9% | 34.2% | 30.9% | 28.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 17.8% | 17.8% | 19.3% | 17.9% | 15.6% | 31.6% | 27.1% | 28.3% | 26.9% | 23.9% | 23.2% |
| ROA | 14.9% | 14.9% | 16.3% | 15.0% | 12.9% | 26.6% | 23.7% | 25.0% | 24.1% | 21.8% | 21.4% |
| ROIC | 13.3% | 13.3% | 15.7% | 14.5% | 17.4% | 27.9% | 23.1% | 23.5% | 25.3% | 24.0% | 24.0% |
| ROCE | 15.9% | 15.9% | 18.8% | 17.3% | 20.5% | 33.1% | 28.2% | 28.9% | 32.2% | 31.8% | 31.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.07 | 0.07 | 0.02 | 0.03 | 0.03 | 0.02 | 0.02 | 0.02 | — | 0.04 | 0.06 |
| Debt / EBITDA | 0.33 | 0.33 | 0.10 | 0.13 | 0.11 | 0.06 | 0.05 | 0.06 | — | 0.13 | 0.19 |
| Net Debt / Equity | — | -0.21 | -0.21 | -0.17 | -0.15 | -0.12 | -0.22 | -0.20 | -0.21 | -0.28 | -0.21 |
| Net Debt / EBITDA | -0.96 | -0.96 | -0.84 | -0.71 | -0.47 | -0.33 | -0.68 | -0.63 | -0.57 | -0.84 | -0.65 |
| Debt / FCF | — | -1.70 | -1.88 | -1.93 | -0.67 | -0.40 | -1.17 | -1.24 | -0.98 | -43.84 | -54.27 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Net cash position: cash ($3.4B) exceeds total debt ($860M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 73.08 | 73.08 | 8.01 | 5.88 | 5.53 | 5.07 | 11.06 | 9.86 | 6.99 | 8.67 | 7.54 |
| Quick Ratio | 73.08 | 73.08 | 8.01 | 5.88 | 5.53 | 5.07 | 11.06 | 9.86 | 6.99 | 8.67 | 7.54 |
| Cash Ratio | 60.33 | 60.33 | 6.01 | 4.23 | 3.88 | 2.99 | 7.89 | 7.23 | 5.04 | 6.69 | 5.47 |
| Asset Turnover | — | 0.50 | 0.53 | 0.53 | 0.56 | 0.61 | 0.58 | 0.60 | 0.70 | 0.64 | 0.69 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 4.9% | 5.0% | 4.5% | 4.6% | 4.5% | 3.8% | 2.4% | 2.5% | 3.0% | 2.2% | 2.9% |
| Payout Ratio | 54.8% | 54.8% | 54.1% | 62.7% | 71.1% | 55.2% | 35.6% | 34.4% | 37.8% | 37.6% | 44.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.8% | 9.0% | 8.1% | 7.2% | 6.1% | 6.7% | 6.6% | 7.1% | 7.9% | 5.7% | 6.3% |
| FCF Yield | 6.6% | 6.5% | 5.0% | 3.8% | 8.6% | 7.1% | 4.9% | 4.5% | 6.4% | 0.2% | 0.1% |
| Buyback Yield | 2.8% | 2.7% | 1.3% | 1.1% | 3.4% | 2.5% | 3.4% | 2.4% | 4.8% | 1.8% | 3.6% |
| Total Shareholder Yield | 7.7% | 7.7% | 5.8% | 5.7% | 7.9% | 6.3% | 5.9% | 5.0% | 7.8% | 4.0% | 6.5% |
| Shares Outstanding | — | $224M | $223M | $225M | $227M | $229M | $231M | $239M | $247M | $245M | $250M |
Includes 30+ ratios · 30 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying TROW stock.
T. Rowe Price Group, Inc.'s current P/E ratio is 11.3x. The historical average is 20.0x. This places it at the 3th percentile of its historical range.
T. Rowe Price Group, Inc.'s current EV/EBITDA is 7.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.8x.
T. Rowe Price Group, Inc.'s return on equity (ROE) is 17.8%. The historical average is 23.6%.
Based on historical data, T. Rowe Price Group, Inc. is trading at a P/E of 11.3x. This is at the 3th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
T. Rowe Price Group, Inc.'s current dividend yield is 4.88% with a payout ratio of 54.8%.
T. Rowe Price Group, Inc. has 62.7% gross margin and 29.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
T. Rowe Price Group, Inc.'s Debt/EBITDA ratio is 0.3x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Persistent active equity outflows
Metrics are mathematically derived from official filings.
Premium Multiple for Active Manager
TROW trades at 2.07x book and 12.1x trailing earnings, a premium to peers like BEN (1.23x P/B) and IVZ (1.12x P/B), reflecting its fortress balance sheet and sticky retirement assets, per reported market data.
The P/B premium over peers suggests the market assigns value to TROW's durable TDF franchise and low leverage, but the discount to AMG's 2.66x P/B indicates it is not priced as a growth compounder. At 10.99x forward earnings, the market appears to price in modest earnings growth, which may be optimistic given persistent outflows in active equity. The 4.6% dividend yield provides a floor, but valuation upside hinges on stabilizing flows and fee rate trends.
ROE Driven by Asset Utilization
ROE averaged 4.6% over the last four quarters, with ROA at 3.7%, reflecting high asset utilization from a fee-based model, but leverage is minimal (equity/assets 0.79), as reported in quarterly financials.
DuPont decomposition shows ROE is driven by net margin (fee income) and asset turnover, not leverage, since TROW holds no debt. The efficiency ratio improved to 28.5% in 2026Q2 from 43.6% in Q1, indicating strong operating leverage, but this may be flattered by one-time items. The shift to lower-fee ETFs and SMAs could compress margins over time, though the recent EPS beat suggests cost discipline is offsetting mix pressure.
Efficiency Gains Mask Fee Mix Shift
The efficiency ratio fell to 28.5% in 2026Q2 from 43.6% in Q1, a dramatic improvement, but NIM is negligible (0.0-1.7%), confirming TROW's non-bank model, as per reported quarterly data.
The efficiency ratio improvement is notable, but it may be overstated by timing of compensation accruals. The fee mix is shifting toward lower-fee products, which could pressure the effective fee rate even as AUM grows. Management's focus on ETFs and SMAs suggests a strategic response, but the long-term margin trajectory depends on whether these vehicles can achieve scale without diluting overall profitability.
Fortress Balance Sheet with High Equity
Equity/assets stood at 0.79 in 2026Q2, with $11.0B in equity and minimal debt (0.07% D/E), indicating a strong capital position, as per financial statements.
TROW's capital base is exceptionally strong, with no traditional bank leverage. The $3.3B cash pile provides strategic optionality for acquisitions or buybacks, but also represents 'lazy capital' that could be deployed more efficiently. The high equity ratio limits ROE, but it also insulates the firm from market shocks, supporting its premium valuation.
No Loan Book, But Provision Line Volatile
TROW's 'Loan Loss' line, likely performance-based compensation, swung from $823.4M in 2026Q2 to $403.6M in Q1, showing high volatility, based on reported figures.
The absence of a traditional loan book means credit risk is minimal, but the provision line's volatility suggests earnings can be distorted by compensation adjustments. Investors should monitor this line for signs of margin pressure or one-time charges. The $5.3B securities portfolio may carry unrealized losses, but these are not reflected in the capital ratios, which could overstate economic capital.
Premium to Peers, Discount to AMG
TROW's P/B of 2.07x is above BEN (1.23x) and IVZ (1.12x) but below AMG (2.66x), reflecting its superior balance sheet and franchise, as per peer comparison data.
The valuation gap versus BEN and IVZ is justified by TROW's higher ROE (5.3% vs 6.4% for BEN, negative for IVZ) and lower leverage. However, AMG's higher P/B suggests the market rewards its affiliate model and higher ROE (19.7%). TROW's premium may narrow if active outflows persist, but its TDF moat and cash pile provide downside support.
P/E Misleads Due to Provision Volatility
TROW's P/E of 12.1x is distorted by volatile provision expenses, which swung from $823.4M in 2026Q2 to $403.6M in Q1, making trailing earnings unreliable, as per reported quarterly data.
The P/E ratio is commonly misapplied to asset managers because earnings can be affected by non-operating items like seed capital gains and performance-based compensation. A more appropriate metric is P/B or P/TBV, which better reflects the firm's intrinsic value and capital position. Investors should also adjust for the $3.3B cash pile, which inflates book value but is not part of the operating business.