Explain this page
Arphra AIPlain-English read on T. Rowe Price Group, Inc.’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | $25.2B | $22.91B | — | — | — | — |
| Enterprise value | — | — | — | $22.83B | $20.39B | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | 3.22 | 2.79 | — | — | — | — |
| EV / FCF | — | — | — | 18.08 | 13.79 | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | +8.33% | +9.11% | — | — | — | — |
| Free cash flow yield | — | — | — | +5.01% | +6.46% | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +60.98% | +54.96% | +49.63% | +51.94% | +62.67% | +55.40% | +55.32% | +55.88% | +53.95% |
| Operating margin | +48.36% | +36.58% | +30.74% | +32.89% | +29.92% | +30.35% | +31.95% | +31.28% | +31.44% |
| EBITDA margin | +51.03% | +48.42% | +39.00% | +42.02% | +39.35% | +39.37% | +39.73% | +39.78% | +39.15% |
| EBIT margin | +48.36% | +38.47% | +31.55% | +34.91% | +33.44% | +33.12% | +32.69% | +32.32% | +33.29% |
| Pre-tax margin | +52.07% | +30.03% | +38.55% | +39.75% | +39.31% | +40.20% | +38.44% | +39.94% | +39.97% |
| Net margin | +40.18% | +24.01% | +27.69% | +29.61% | +28.53% | +28.61% | +28.31% | +28.43% | +28.15% |
| Cost structure | |||||||||
| Cost of revenue / sales | +39.02% | +45.04% | +50.37% | +48.06% | +37.33% | +45.06% | +45.43% | +46.47% | +44.64% |
| R&D intensity | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| SG&A intensity | +12.63% | +16.49% | +18.08% | +17.02% | +31.17% | +21.78% | +21.43% | +22.34% | +21.50% |
| Effective tax rate | +22.43% | +25.59% | +26.29% | +24.25% | +23.20% | +23.86% | +24.41% | +24.39% | +24.00% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | +30.07% | +16.08% | +17.38% | +18.34% | +17.32% | +17.19% | +17.38% | +17.19% | +17.35% |
| Return on assets (ROA) | +24.65% | +13.38% | +14.57% | +15.59% | +14.29% | +14.47% | +14.88% | +14.39% | +14.60% |
| Return on capital (ROC) | +35.32% | +23.70% | +18.74% | +19.89% | +16.95% | +17.51% | +18.84% | +18.18% | +18.57% |
| Return on invested capital (ROIC) | +29.35% | +15.55% | +16.88% | +17.91% | +16.16% | +16.51% | +16.70% | +16.52% | +16.63% |
| Asset turnover | +61.33% | +55.73% | +52.62% | +52.65% | +50.08% | +50.57% | +52.57% | +50.60% | +51.85% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +40.18% | +24.01% | +27.69% | +29.61% | +28.53% | +28.61% | +28.31% | +28.43% | +28.15% |
| Asset turnover (× revenue / assets) | +61.33% | +55.73% | +52.62% | +52.65% | +50.08% | +50.57% | +52.57% | +50.60% | +51.85% |
| Equity multiplier (× assets / equity) | +121.99% | +120.20% | +119.31% | +117.66% | +121.18% | +118.78% | +116.78% | +119.47% | +118.85% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 0.61 | 0.56 | 0.53 | 0.53 | 0.50 | 0.51 | 0.53 | 0.51 | 0.52 |
| Fixed-asset turnover | 8.18 | 6.27 | 6.17 | 5.89 | 5.96 | — | — | — | — |
| Inventory turnover | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 7.25 | 8.67 | 8.00 | 8.08 | 10.24 | — | — | — | — |
| Payables turnover | 6.94 | 7.19 | 7.70 | 9.64 | — | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 50.35 | 42.12 | 45.64 | 45.15 | 35.65 | — | — | — | — |
| Days inventory outstanding (DIO) | — | — | — | — | — | — | — | — | — |
| Days payables outstanding (DPO) | 52.56 | 50.80 | 47.43 | 37.84 | — | — | — | — | — |
| Cash conversion cycle | -2.21 | -8.68 | -1.79 | 7.30 | 35.65 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 1.12 | 1.51 | 0.68 | 0.80 | 0.84 | 0.80 | 0.78 | 0.80 | 0.77 |
| FCF / Net income | 1.04 | 1.36 | 0.51 | 0.60 | 0.71 | 0.60 | 0.60 | 0.60 | 0.63 |
| FCF margin | +41.88% | +32.70% | +14.10% | +17.79% | +20.22% | +17.04% | +17.00% | +17.06% | +17.66% |
| OCF margin | +45.00% | +36.36% | +18.87% | +23.76% | +23.97% | +22.81% | +22.05% | +22.78% | +21.63% |
| CapEx / Revenue | +3.12% | +3.66% | +4.77% | +5.97% | +3.75% | +4.95% | +4.72% | +4.70% | +4.86% |
| CapEx / D&A | 1.17 | 0.37 | 0.64 | 0.84 | 0.45 | — | — | — | — |
| Stock-based comp / Revenue | +3.58% | +4.40% | +4.11% | +3.49% | +2.97% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 13.12 | 6.70 | 7.76 | 9.15 | 9.25 | 9.44 | 9.48 | 9.37 | 10.11 |
| EPS · basic | 13.25 | 6.73 | 7.78 | 9.18 | 9.26 | 9.45 | 9.45 | 9.30 | 10.17 |
| Book value / share | 44.82 | 42.65 | 45.78 | 51.28 | 53.86 | 55.92 | 54.99 | 56.59 | 57.26 |
| Tangible BV / share | 29.05 | 28.24 | 31.77 | 37.79 | 40.83 | 55.92 | 54.99 | 56.59 | 57.26 |
| Sales / share | 33.53 | 28.57 | 28.74 | 31.77 | 32.69 | 33.59 | 33.76 | 34.21 | 35.29 |
| Operating CF / share | 15.09 | 10.39 | 5.42 | 7.55 | 7.84 | 7.66 | 7.45 | 7.80 | 7.63 |
| Free cash flow / share | 14.04 | 9.34 | 4.05 | 5.65 | 6.61 | 5.72 | 5.74 | 5.84 | 6.23 |
| Dividends / share | 7.44 | 4.88 | 4.99 | 5.09 | 5.11 | 5.47 | 5.63 | 5.44 | 5.67 |
| Payout ratio | +55.20% | +71.08% | +62.71% | +54.07% | +54.76% | +56.96% | +58.86% | +55.88% | +57.05% |
| Retention ratio | +44.80% | +28.92% | +37.29% | +45.93% | +45.24% | +43.04% | +41.14% | +44.12% | +42.95% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | -15.43% | -0.43% | +9.80% | +3.12% | +2.03% | +2.14% | +1.30% | +1.75% | +0.30% |
| Gross profit · YoY | — | -23.78% | -10.09% | +14.91% | +24.43% | -9.79% | +1.98% | +2.34% | -1.76% | -1.22% |
| Profit | ||||||||||
| Operating income · YoY | — | -36.02% | -16.32% | +17.48% | -6.19% | +3.48% | +7.51% | -0.80% | +2.26% | -4.96% |
| EBITDA · YoY | — | -19.75% | -19.80% | +18.30% | -3.45% | +2.10% | +3.08% | +1.43% | +0.12% | -2.97% |
| Net income · YoY | — | -49.47% | +14.81% | +17.41% | -0.62% | +2.33% | +1.05% | +1.73% | +0.77% | -4.06% |
| Operating | ||||||||||
| EBIT · YoY | — | -32.72% | -18.35% | +21.52% | -1.23% | +1.07% | +0.81% | +0.16% | +4.78% | -4.28% |
| R&D · YoY | — | — | — | — | — | — | — | — | — | — |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | -48.93% | +15.82% | +17.91% | +1.09% | +2.00% | +0.48% | -1.17% | +7.87% | -3.21% |
| EPS · basic · YoY | — | -49.21% | +15.60% | +17.99% | +0.87% | +2.04% | +0.04% | -1.62% | +9.36% | -3.25% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $249.2M | $329.6M | $308.5M | $278.7M | $860.2M | $508.66M | $507.44M | $516.22M | $550.86M |
| Net debt | -$1.27B | -$1.43B | -$1.76B | -$2.37B | -$2.52B | -$2.36B | -$2.42B | -$2.41B | -$2.51B |
| Net debt / EBITDA | -0.33 | -0.45 | -0.70 | -0.80 | -0.87 | -0.80 | -0.80 | -0.79 | -0.82 |
| Debt / equity | 0.02 | 0.03 | 0.03 | 0.02 | 0.07 | 0.04 | 0.04 | 0.04 | 0.04 |
| Debt / assets | +1.99% | +2.83% | +2.51% | +2.07% | +5.89% | +3.45% | +3.50% | +3.38% | +3.63% |
| Equity / assets | +81.97% | +83.20% | +83.81% | +84.99% | +82.52% | +84.19% | +85.63% | +83.70% | +84.14% |
| Coverage | |||||||||
| EBITDA / interest expense | — | — | — | — | — | — | — | — | — |
| Operating income / interest | — | — | — | — | — | — | — | — | — |
| Interest expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Liquidity | |||||||||
| Current ratio | 5.07 | 5.53 | 5.88 | 8.01 | 73.08 | — | — | — | — |
| Quick ratio | 5.07 | 5.53 | 5.88 | 8.01 | 73.08 | — | — | — | — |
| Cash ratio | 2.99 | 3.88 | 4.23 | 6.01 | 60.33 | — | — | — | — |
| Working capital | $2.07B | $2.05B | $2.39B | $3.09B | $4.04B | — | — | — | — |
| Working capital / revenue | +27.01% | +31.62% | +36.92% | +43.51% | +55.18% | — | — | — | — |
Sourced from key_metrics + financial_ratios (loaded by load_fundamentals_extended.py).
Valuation
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| P / E | — | — |
| P / B | — | — |
| EV / EBITDA | — | — |
| EV / Sales | 2.79x | 3.22x |
| Earnings yield | 9.1% | 8.3% |
| FCF yield | 6.5% | 5.0% |
Returns
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Gross margin | — | — |
| Operating margin | — | — |
| Net margin | — | — |
| ROE | 19.2% | 20.3% |
| ROA | 14.3% | 15.6% |
| ROIC | 11.5% | 13.6% |
Leverage & liquidity
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Debt / equity | — | — |
| Net debt / EBITDA | -0.87 | -0.80 |
| Interest coverage | — | — |
| Current ratio | 73.08x | 8.01x |
| Quick ratio | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).