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Is the Schroders share price expensive at 3,196p?

Jack Brumby

Schroders (LON:SDRis a large cap asset and wealth management company which splits its operations between Asset Management and Wealth Management.

Right now the Schroders share price is on the expensive side from a factor perspective, based on its Value Rank of 36. Let's see why this is.

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A closer look at Schroders' Value Rank

We can see by using Schroders’s StockReport that the group has a:

  • Rolling price to book value of 3.05,
  • Trailing twelve month price to earnings ratio of 16.2
  • Trailing twelve month price to free cashflow of 20.3
  • Rolling dividend yield of 3.51%
  • Trailing twelve-month price to sales ratio of 4.34

This combination of financial traits suggests that Schroders stock is toward the more expensive end of the market. Being expensive is not the end of the world, of course - but it does help to have favourable exposures to other factors to justify the share price premium.

Studies indicate that combining factors such as Value, Quality and Momentum is a more effective way of outperforming the market over longer time frames. That's why we have constructed our StockReports to give an instant impression of how well exposed Schroders (LON:SDR) is to these three factors. We go into greater detail on factor investing in this video

Stockopedia helps you to identify return-enhancing factors such as Quality, Value and Momentum by analysing thousands of data points every day. To find out more about you find investment opportunities and analyse your portfolios then take one of our two-week free trials and have a look around.