Is T. Rowe Price Group, Inc. (TROW) Undervalued?
Based on the current stock price of $104.75 and a P/E ratio of 11.42,T. Rowe Price Group, Inc. has a PEG ratio of 2.80.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 2.80, TROW appears to be potentially overvalued relative to its growth rate of 4.08%.
Based on a PEG ratio of 1.28 (adjusted for dividends).
Compare TROW vs Competitors
Use the calculator below to see how TROW stacks up against other stocks in the same industry.
How we analyzed TROW
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 11.42and dividing it by the annual growth rate of 4.08%.
PEG = 11.42 (P/E) ÷ 4.08 (Growth) = 2.80
Frequently Asked Questions about TROW
What is the current PEG Ratio for T. Rowe Price Group, Inc. (TROW)?+
The current PEG Ratio for T. Rowe Price Group, Inc. is 2.80. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is TROW stock undervalued right now?+
Based on the PEG ratio of 2.80, T. Rowe Price Group, Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for TROW?+
The PEGY ratio for T. Rowe Price Group, Inc. is 1.28. This metric accounts for dividend yield (4.85%), providing a more complete valuation picture.