Stock fact sheet · data as of
T. Rowe Price Group, Inc. (TROW): fair value, margin of safety and Wheel Score
Financial Services · Asset Management · United States · High Yield Income
Is TROW undervalued?
TROW closed at 99.62 on 16 Oct 2026, 15% below the GLS average fair value of 116.88 from 9 models (6 of them above the price). That is a moderate margin of safety: the stock passes the "below fair value" rule of the Sunday Scan, and the Wheel Score gives it 19 of the 25 Value points.
The 9 models disagree widely: Lynch gives 12.14 while 10 Cap gives 270.30. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files TROW under High Yield Income: a dividend yield above 4%.
Nine valuation models for TROW
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 134.31 | +35% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 109.59 | +10% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 110.02 | +10% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 12.14 | -88% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 29.80 | -70% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 270.30 | +171% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 194.34 | +95% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 76.07 | -24% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 115.35 | +16% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 7.22 | -93% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 110.50 | +11% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health TROW scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 7.3 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are high - ROIC 17.8%, ROE 19.2%, ROA 14.3% - with debt at 0.08 times equity and a free-cash-flow yield of 10.2%.
The dividend yield is high at 5.19% (payout ratio 52%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Asset Management 99%, Capital Allocation Based Income 1% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 17.8% |
|---|---|---|---|
| GLS Moat | 7.3 / 10 | ROE | 19.2% |
| Debt / equity | 0.08 | ROA | 14.3% |
| Free-cash-flow yield | 10.2% | Payout ratio | 52% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 81: Prime
TROW scores 81 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 19/25), Piotroski health (16/20), the GLS moat (11/15), the option premium on offer (16/20) and how easily the stock trades (19/20).
Implied volatility is 31% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (16 of 20 points). Chain open interest is 30,989 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 2.4M shares a day on a market cap of $21.3B, with a beta of 1.47 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 19 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 19 / 25 | 15% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 11 / 15 | moat 7.3/10 | |
| Premium | 16 / 20 | implied volatility 31% | |
| Stability | 19 / 20 | 2.4M shares/day, $21.3B cap, beta 1.47 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
T. Rowe Price Group, Inc. reports earnings on 29 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Asset Management
The 12 companies below are the closest to T. Rowe Price Group, Inc. by market cap within the Asset Management industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| WCMRX WCM Focused International Growth Fd Inv Cl | 26.34 | 20.04 | -31% | 21No options | $21.5B |
| RPTIX T. Rowe Price Mid-Cap Growth Fund | 100.80 | 114.61 | +12% | 39No options | $20.7B |
| JVMRX John Hancock Funds Disciplined Value Mid Cap Fund | 31.36 | 5.15 | -509% | 31No options | $22.5B |
| JVMAX John Hancock Funds Disciplined Value Mid Cap Fund Class A | 29.35 | 4.94 | -494% | 31No options | $22.5B |
| LZOEX Lazard Emerging Markets Equity Portfolio | 32.34 | 1.35 | -2297% | 28No options | $20.0B |
| PFG Principal Financial Group, Inc. | 107.26 | 158.46 | +32% | 78Good | $23.0B |
| AMUSX American Funds U.S. Government Securities Fund Class A | 11.44 | 3.53 | -225% | 33No options | $23.3B |
| FNILX Fidelity ZERO Large Cap Index Fund | 27.77 | 42.77 | +35% | 39No options | $19.2B |
| VWLUX Vanguard Long-Term Tax-Exempt Fund Admiral Shares | 10.18 | 3.29 | -209% | 34No options | $18.5B |
| APDKX Artisan International Value Fund Advisor Class | 59.43 | 44.81 | -33% | 34No options | $24.4B |
| ARTKX Artisan International Fund | 59.58 | 44.41 | -34% | 34No options | $24.5B |
| APHKX Artisan International Value Fund Institutional Class | 59.78 | 46.89 | -27% | 33No options | $24.6B |
⚖ Compare TROW with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about TROW
Is TROW undervalued right now?
By the GLS models, moderately: at 99.62 the stock trades 15% below the average fair value of 116.88 (data as of 16 Oct 2026).
What is the Wheel Score of TROW and what does it mean?
TROW scores 81 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for TROW?
116.88 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does T. Rowe Price Group, Inc. report earnings next?
The next earnings report is due on 29 Oct 2026 (before the open), 13 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does TROW have listed options, and how liquid are they?
Yes. The nightly snapshot found 446 listed contracts with 30,989 open interest across all expiries and implied volatility of 31% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.