What is T. Rowe Price Group Intrinsic Value: Projected FCF?
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
As of today (2024-09-16), T. Rowe Price Group's Intrinsic Value: Projected FCF is $120.06. The stock price of T. Rowe Price Group is $105.865. Therefore, T. Rowe Price Group's Price-to-Intrinsic-Value-Projected-FCF of today is 0.9.
The historical rank and industry rank for T. Rowe Price Group's Intrinsic Value: Projected FCF or its related term are showing as below:
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of T. Rowe Price Group was 1.96. The lowest was 0.78. And the median was 1.26.
T. Rowe Price Group Intrinsic Value: Projected FCF Historical Data
The historical data trend for T. Rowe Price Group's Intrinsic Value: Projected FCF 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.
* Premium members only.
T. Rowe Price Group Intrinsic Value: Projected FCF Chart
| T. Rowe Price Group Annual Data | ||||||||||||||||||||
| Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | ||||||||||
| Intrinsic Value: Projected FCF | Get a 7-Day Free Trial | 72.09 | 85.09 | 114.06 | 126.37 | 117.33 | ||||||||||||||
| T. Rowe Price Group Quarterly Data | ||||||||||||||||||||
| Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | |
| Intrinsic Value: Projected FCF | Get a 7-Day Free Trial | 122.43 | 122.70 | 117.33 | 120.82 | 120.06 | ||||||||||||||
Competitive Comparison of T. Rowe Price Group's Intrinsic Value: Projected FCF
For the Asset Management subindustry, T. Rowe Price Group's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF 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's Price-to-Projected-FCF Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, T. Rowe Price Group's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where T. Rowe Price Group's Price-to-Projected-FCF falls into.
T. Rowe Price Group Intrinsic Value: Projected FCF Calculation
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)
In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):
Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)
Add all the Free Cash Flow together and divide 6 will get T. Rowe Price Group's Free Cash Flow(6 year avg) = $1,815.14.
T. Rowe Price Group's Intrinsic Value: Projected FCF for today is calculated as
| Intrinsic Value: Projected FCF | = | (Growth Multiple | * | Free Cash Flow (6 year avg) | + | Total Stockholders Equity (Jun24) | * | 0.8) | / | Shares Outstanding (Diluted Average) |
| = | (10.407385931648 | * | 1815.136 | + | 9928.7 | * | 0.8) | / | 223.500 | |
| = | 120.06 |
* 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.
T. Rowe Price Group(NAS:TROW) Intrinsic Value: Projected FCF Explanation
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
T. Rowe Price Group's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
| Price-to-Intrinsic-Value-Projected-FCF | = | Share Price | / | Intrinsic Value: Projected FCF |
| = | 105.865 | / | 120.06165937552 | |
| = | 0.88 |
* 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.
T. Rowe Price Group Intrinsic Value: Projected FCF Related Terms
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T. Rowe Price Group Business Description
Industry
GURUFOCUS.COM »STOCK LIST »Financial Services » Asset Management » T. Rowe Price Group Inc (NAS:TROW) » Definitions » Intrinsic Value: Projected FCF
Comparable Companies
RJF STT ARES PFG NTRS CRBG CG ARCC BEN OWL BLK KKR BX OSTO:INVE A TSX:BN APO BK AMP LSE:III OSTO:EQT
Traded in Other Exchanges
TROW:Mexico 1TROW:Italy 0KNY:UK TR1:Germany TR1:Germany TR1:Germany T1RO34:Brazil TROW:Austria
Address
100 East Pratt Street, Baltimore, MD, USA, 21202
Website
T. Rowe Price provides asset-management services for individual and institutional investors. It offers a broad range of no-load U.S. and international stock, hybrid, bond, and money market funds. At the end of October 2023, the firm had $1.312 trillion in managed assets, composed of equity (51%), balanced (33%), fixed-income and money market (13%), and alternatives (3%) offerings. Approximately two thirds of the company's managed assets are held in retirement-based accounts, which provides 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 U.S.-based asset manager, deriving just over 9% of its AUM from overseas.
Executives
| Higginbotham Robert C.t. | officer: Vice President | 100 E. PRATT STREET, BALTIMORE MD 21202 |
| Thomson Andrew Justin Mackenzie | officer: Vice President | 100 E. PRATT STREET, BALTIMORE MD 21202 |
| William P Donnelly | director | C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036 |
| Andrew C. Mccormick | officer: Vice President | 100 E. PRATT STREET, BALTIMORE MD 21202 |
| Cynthia F Smith | director | 100 E. PRATT STREET, BALTIMORE MD 21202 |
| Jessica M Hiebler | officer: Principal Accounting Officer | 100 E. PRATT STREET, BALTIMORE MD 21202 |
| William J Stromberg | officer: Vice President | 100 E. PRATT STREET, BALTIMORE MD 21202 |
| Kimberly H Johnson | officer: COO and VP | C/O FANNIE MAE, 1100 15TH STREET, NW, WASHINGTON DC 20005 |
| Joshua B Nelson | officer: Vice President | 100 E. PRATT STREET, BALTIMORE MD 21202 |
| Glenn R August | director, officer: Vice President | C/O OHA - 1114 AVENUE OF THE AMERICAS, 27TH FLOOR, NEW YORK NY 10036 |
| Eileen P Rominger | director | 100 E. PRATT STREET, BALTIMORE MD 21202 |
| Sebastien Page | officer: Vice President | 100 E. PRATT STREET, BALTIMORE MD 21202 |
| Jennifer B Dardis | other: CFO and VP | 100 E. PRATT STREET, BALTIMORE MD 21202 |
| Mary K Bush | director | 3509 WOODBINE STREET, CHEVY CHASE MD 20815 |
| W. Sharps Robert | officer: Vice President | 100 E. PRATT STREET, BALTIMORE MD 21202 |
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