Have Investors Priced In T Rowe Price Group Inc’s (NASDAQ:TROW) Growth?

Today we’re going to take a look at the well-established T Rowe Price Group Inc (NASDAQ:TROW). The company’s stock saw a double-digit share price rise of over 10% in the past couple of months on the NasdaqGS. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s take a look at T. Rowe Price Group’s outlook and value based on the most recent financial data to see if the opportunity still exists. View out our latest analysis for T. Rowe Price Group

What is T. Rowe Price Group worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 3.52% below my intrinsic value, which means if you buy T. Rowe Price Group today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $127.41, then there isn’t much room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since T. Rowe Price Group’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from T. Rowe Price Group?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to grow by 25.29% over the next couple of years, the future seems bright for T. Rowe Price Group. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? It seems like the market has already priced in TROW’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on TROW, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on T. Rowe Price Group. You can find everything you need to know about T. Rowe Price Group in the latest infographic research report. If you are no longer interested in T. Rowe Price Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.