This article originally appeared on The DIV-Net March 12, 2012.
Linked here is a detailed quantitative analysis of T. Rowe Price Group Inc. (TROW). Below are some highlights from the above linked analysis:Company Description: T. Rowe Price Group Inc. operates one of the largest no-load mutual fund complexes in the United States.Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:
1. Avg. High Yield Price
2. 20-Year DCF Price
3. Avg. P/E Price
4. Graham Number
TROW is trading at a discount to only 3.) above. The stock is trading at a 27.2% premium to its calculated fair value of $48.43. TROW did not earn any Stars in this section.Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description:
1. Free Cash Flow Payout
2. Debt To Total Capital
3. Key Metrics
4. Dividend Growth Rate
5. Years of Div. Growth
6. Rolling 4-yr Div. > 15%
TROW earned three Stars in this section for 1.), 2.) and 3.) above. A Star was earned since the Free Cash Flow payout ratio was less than 60% and there were no negative Free Cash Flows over the last 10 years. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. TROW earned a Star for having an acceptable score in at least two of the four Key Metrics measured.
Robert Shiller on the New York Times argues that the stock market is expensive by historical standards read on...
Treasury yields held on to their modest rebound this week through Thursday’s close, ahead of the Federal read on...
We’re optimistic about the US and global economies’ prospects, but not for the reasons hogging headlines read on...