Analyst Note
| Greggory Warren, CFA |We've lowered our fair value estimate for T. Rowe Price to $165 per share from $195 after updating our valuation model to include lower levels of assets under management, revenue, and profitability in the near term given the market selloff that started during the first quarter of 2022. Our new fair value estimate implies a price/earnings multiple of 15.6 times our 2022 earnings estimate and 14.9 times our 2023 earnings estimate. For some perspective, during the past five (10) years, the company's shares have traded at an average of 14.9 (16.6) times trailing earnings.