| Intrinsic Valuation of: TROW | |||||||||||
| Free Cash Flow Average and Growth over past 5Y | Key Statistics | ||||||||||
| Year | FCF | FCF (FCF/Revenue) | |||||||||
| 2020 | - | - | EPS (FY) | 9 | Market Cap | $22B | |||||
| 2021 | - | - (-) | P/E Ratio | 11 | Total Asset | $13B | |||||
| 2022 | $3B | - (-) | Net Income | $2B | Total Debt | $0 | |||||
| 2023 | $2B | -34.0% (-21.9%) | EBITDA | $3B | Total Liab | $2B | |||||
| 2024 | $911M | -57.1% (-56.9%) | Opr Margin | 0.35 | Debt/Equity | - | |||||
| 2025 | $1B | 38.5% (26.2%) | PreTax Margin | 34.91 | BV/Share | 33 | |||||
| 5Y Average FCF | $2B | -17.5% (-17.5%) | |||||||||
| Overall Market Assumptions: | |||||||||||
| Assumptions: | P/E for No-Growth Company: | 7.0 | |||||||||
| Perpetual Growth Rate (g): | 2.5% | Historical US Bond Yield: | 4.4% | ||||||||
| Discount Rate (WACC): | 7.4% | Current US Bond Yield: | 3.5% | ||||||||
| Forcasting Future Free Cash Flow for next 6Y | Modified Benjamin Graham's Intrinsic Value | ||||||||||
| Year | FCF Projection (4.0%) | ||||||||||
| 2026 | $1B | MBG Intrinsic Value | $79 | ||||||||
| 2027 | $1B | ||||||||||
| 2028 | $1B | ||||||||||
| 2029 | $1B | ||||||||||
| 2030 | $2B | ||||||||||
| 2031 | $2B | ||||||||||
| Terminal Value | $33B | Net Worth/Share | $52 | ||||||||
| DCF Valuation | DCF Valuation "What If" Scenario Table | ||||||||||
| Enterprise Value | $28B | Growth Rate | |||||||||
| (+) Cash & Cash Equivalents | $3B | $141 | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | ||||
| (-) Total Debt | $0 | WACC | 7.3% | 125 | 134 | 143 | 156 | 171 | |||
| Equity Value | $31B | 7.4% | 124 | 132 | 142 | 154 | 169 | ||||
| Shares Outstanding | 220,316,000 | 7.4% | 123 | 131 | 141 | 152 | 167 | ||||
| 7.9% | 115 | 121 | 129 | 138 | 149 | ||||||
| DCF Intrinsic Value | $141 | 8.4% | 107 | 113 | 119 | 126 | 135 | ||||
| Analyzed by QuantJuice (2025) | |||||||||||