TROWNEUTRAL

TROW P/E Ratio Analysis

9.4x

Updated 57h ago·SEC filings & market data

Key Takeaway

The P/E ratio of 9.4x means investors pay $9.40 for each $1 of the company’s trailing earnings, a common gauge of how expensive or cheap a stock is relative to its profits.

Sector Performance

8th percentile

TROW

9.4x

Sector Median

23.1x

Sector Avg

33.7x

Prior Period

10.0x(Jul 2026)

↑ Improving

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Deep Analysis

The P/E ratio of 9.4x means investors pay $9.40 for each $1 of the company’s trailing earnings, a common gauge of how expensive or cheap a stock is relative to its profits.

This sits well below the sector median of 23.3x, placing TROW in the 6th percentile among peers, meaning it is cheaper than about 94% of comparable companies. For the trend, the year-over-year change is not available, but the quarter-over-quarter change shows the P/E fell 6.4% from 10.0x to 9.4x. A low P/E combined with a recent decline suggests modest risk from valuation, yet it may also signal weak expected earnings growth rather than a clear bargain. The supportive valuation level and the downward trend do not strongly contradict the overall NEUTRAL verdict, as the cheapness is already reflected in the stock’s current positioning. This metric supports the neutral stance because it highlights an attractive price without confirming a catalyst for near-term upside.

Frequently Asked Questions

What does the P/E Ratio tell investors about TROW?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

Who are TROW's closest peers by P/E Ratio?

The closest peers by P/E Ratio include: WELL (102.4x), IAC (104.9x), FORM (108.1x), MCHP (113.5x), MTSI (118.9x).

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.