Is T. Rowe Price Group, Inc. overvalued or undervalued?

As of 23 May 2025, T. Rowe Price Group, Inc. has moved from a fair to a very attractive valuation grade, indicating a significant improvement in its perceived investment potential. The company is currently undervalued, with a P/E ratio of 11, which is notably lower than its peers such as BlackRock, Inc. at 23.40 and Raymond James Financial, Inc. at 15.88. Additionally, T. Rowe Price boasts a strong ROCE of 31.78% and a dividend yield of 5.39%, further emphasizing its financial health and attractiveness to investors.
In comparison to its peers, T. Rowe Price's EV to EBITDA ratio of 6.75 is also favorable, especially when contrasted with BlackRock's 16.40, suggesting that T. Rowe Price offers better value for earnings before interest, taxes, depreciation, and amortization. The company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -16.89% compared to the index's 2.44%, which may contribute to its current undervaluation. Overall, T. Rowe Price Group, Inc. presents a compelling investment opportunity given its attractive valuation metrics relative to the industry.