Latest Ratios: P/E Ratio 12.9x · EV/EBITDA 8.9x · 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 | $25.9B | $22.9B | $25.3B | $24.2B | $24.8B | $45.0B | $35.0B | $29.1B | $22.8B | $25.7B | $18.8B |
| Enterprise Value | $23.4B | $20.4B | $22.9B | $22.5B | $23.3B | $43.7B | $33.0B | $27.4B | $21.4B | $23.8B | $17.6B |
| P/E Ratio → | 12.88 | 11.07 | 12.36 | 13.88 | 16.28 | 14.99 | 15.17 | 14.00 | 12.70 | 17.58 | 15.84 |
| P/S Ratio | 3.54 | 3.13 | 3.56 | 3.75 | 3.82 | 5.86 | 5.64 | 5.17 | 4.24 | 5.30 | 4.40 |
| P/B Ratio | 2.21 | 1.90 | 2.21 | 2.35 | 2.56 | 4.39 | 3.78 | 3.54 | 3.32 | 3.77 | 3.31 |
| P/FCF | 17.52 | 15.49 | 20.01 | 26.57 | 11.67 | 14.00 | 20.54 | 22.06 | 15.70 | 592.59 | 848.54 |
| P/OCF | 14.78 | 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 | 8.93 | 7.78 | 8.06 | 9.10 | 7.73 | 11.17 | 11.24 | 10.64 | 8.48 | 10.57 | 9.45 |
| EV / EBIT | 10.69 | 8.34 | 9.24 | 11.02 | 9.35 | 11.78 | 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 | 4.3% | — | — | — | — | — | — | — | — | — | — |
| 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 | 7.8% | 9.0% | 8.1% | 7.2% | 6.1% | 6.7% | 6.6% | 7.1% | 7.9% | 5.7% | 6.3% |
| FCF Yield | 5.7% | 6.5% | 5.0% | 3.8% | 8.6% | 7.1% | 4.9% | 4.5% | 6.4% | 0.2% | 0.1% |
| Buyback Yield | 2.4% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 6.7% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $224M | $223M | $225M | $227M | $229M | $231M | $239M | $247M | $245M | $250M |
Secular active-to-passive migration
Based on current market pricing, TROW trades at a TTM P/E of 11.92, which appears to reflect investor skepticism regarding long-term organic growth, as the firm's valuation remains significantly compressed compared to historical averages and peers like Franklin Resources, which commands a much higher P/E multiple.
The current forward P/E of 11.62 suggests that the market is pricing in a stagnant earnings outlook, likely discounting the firm's ability to maintain its fee premium in a passive-dominated environment. While the 4.6% dividend yield provides a compelling floor for income-oriented investors, the valuation gap relative to peers warrants caution regarding whether this represents a value opportunity or a permanent de-rating of the active management business model.
As reported in financial statements, TROW's ROIC has fluctuated between 2.8% and 4.1% over the last ten quarters, indicating that the firm's ability to compound capital is currently hampered by the broader market beta sensitivity inherent in its asset-heavy advisory fee structure.
The modest ROIC levels suggest that while the firm maintains a high-quality balance sheet, the underlying business is struggling to generate returns that significantly exceed its cost of capital during periods of market volatility. Investors should monitor whether the recent pivot toward private credit via Oak Hill Advisors can improve these returns by introducing less market-correlated, higher-fee revenue streams.
According to recent quarterly data, TROW's DSO has remained relatively stable, averaging between 38 and 47 days, which suggests that the firm maintains disciplined control over its institutional client receivables despite the inherent lumpiness of advisory fee collections in the asset management industry.
The consistency in DSO indicates that the firm's operational processes for fee collection are robust and not currently suffering from credit deterioration among its institutional client base. This efficiency is critical for maintaining the firm's liquidity position, allowing it to continue its aggressive capital return strategy without relying on external financing.
Based on reported figures, TROW maintains a negligible debt-to-equity ratio of 0.04 as of 2026Q1, underscoring a fortress-like capital structure that remains entirely unburdened by the interest rate sensitivity that frequently impacts the financial stability of more highly leveraged peers in the asset management sector.
The firm's minimal debt load provides significant strategic optionality, allowing management to pursue inorganic growth or share repurchases without the risk of covenant breaches or refinancing pressure. This conservative leverage profile serves as a vital buffer against the cyclical revenue volatility that characterizes the firm's AUM-dependent business model.
The P/E ratio is frequently misapplied to TROW, as it obscures the firm's true earning power by failing to adjust for volatile non-operating investment income and the impact of seed capital gains, which can significantly distort quarterly net income figures and lead to inaccurate valuation conclusions.
Analysts should instead focus on 'Net Revenue' after distribution costs and adjust for non-recurring investment gains to isolate the core advisory business performance. Relying solely on headline P/E ignores the firm's substantial cash reserves and the recurring nature of its fee-based model, which are better captured through a cash-flow-based valuation approach.
Includes 30+ ratios · 30 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
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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 12.9x. The historical average is 20.0x. This places it at the 10th percentile of its historical range.
T. Rowe Price Group, Inc.'s current EV/EBITDA is 8.9x. 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 12.9x. This is at the 10th 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 4.29% 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.