Annual Report
For yield, price, last transaction,
and current balance, 24 hours,
7 days a week, call:
1-800-638-2587 toll free
625-7676 Baltimore area
For assistance with your existing
fund account, call:
Shareholder Service Center
1-800-225-5132 toll free
625-6500 Baltimore area
T. Rowe Price
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for distri-bution only to shareholders and to others
who have received a copy of the prospectus of the T. Rowe Price Value Fund.
T. Rowe Price
_____________
Value Fund
December 31, 1994
Value
Fellow Shareholders
This is our first report since the inception of your Fund on September 30,
1994, and we would like to welcome you as shareholders.
The equity market's flat performance in the fourth quarter capped an
uninspiring year for the unmanaged Standard & Poor's 500 Stock Index, which
generated a total return of 1.3%. The stock market was notable for its low
volatility in 1994, continuing the pattern of the prior two years. The sharp
increase in interest rates was the year's big financial story. Despite the
most adverse interest rate environment since the early 1980s, strong corporate
earnings growth and continued investor demand provided support for stocks. The
market averages hovered near their highs for most of the year, although
approximately half of New York Stock Exchange issues traded at least 20% below
their 1994 highs during the year.
Your Fund turned in a strong performance during the fourth quarter,
surpassing the returns for both the S&P 500 and the average for other growth
and income funds.
Performance Comparison
Period Ended 12/31/94
3 Months (from inception)
_________________________
Value Fund 3.1%
S&P 500 0.0
Lipper Growth & Income
Fund Average -1.6
Dividend Distribution
On December 27, your Board of Directors declared a dividend of $0.07 per
share, payable to shareholders of record on that date. You should have
received your check or statement reflecting the distribution, as well as Form
1099-DIV reporting it for 1994 tax purposes.
Portfolio Review
In this first report, we would like to review the investment philosophy for
your Fund and provide several examples of investments that are likely to be
representative of future activity.
We believe that investors can earn attractive returns from undervalued
securities. The appeal of value investing is based on the tendency of
investors to overpay for faddish "story" stocks and underpay for less dynamic,
out-of-favor securities. Value stocks, which fall into the second category,
are often underpriced in relation to long-term measures of valuation,
including price/earnings, price/book value, liquidation value, and other
financial yardsticks.
During the past three months we invested in Automatic Data Processing
via a convertible security with a yield of 5%. The common stock of this
company has performed well over time, and the yield on the convertible serves
as a buffer if the stock price declines. Your Fund fared well with an
investment in Caesars World, an undervalued gaming company that is an
acquisition target of ITT. We also purchased several bank stocks, including
Brooklyn Bancorp, Provident Bankshares, Midlantic, and California Federal.
Financial stocks were generally poor performers in 1994, and many sell at
attractive prices with
Chart 1 - Security Diversification
generous yields. Another stock we bought was Honeywell, a financially strong
global company whose shares had been punished because of concerns about a
patent infringement suit. The stock began to rebound after the suit was
dismissed early in 1995. We also added Hills Stores, an undervalued retailer
with plans for a large stock buyback program.
You can see that our stock selection is eclectic. The companies
represent different industries but share a common denominator: a pattern of
undervaluation that we believe will eventually be recognized by other
investors. It is always difficult to say when this recognition will occur.
Summary and Outlook
There are always areas of value in any economic and financial environment. Our
challenge is to ferret out the most potentially rewarding securities on your
behalf. We believe that rising interest rates could dampen the prospects for
appreciation in the overall market in 1995, but we will remain ever diligent
in our search for attractive total return opportunities as the year unfolds.
Respectfully submitted,
Brian C. Rogers
President and Chairman of the
Investment Advisory Committee
January 20, 1995
Twenty-Five Largest Holdings
Percent of
Net Assets
___________
Time Warner 3.3%
Automatic Data Processing 3.3
U.S. Treasury Bonds 3.1
Brooklyn Bancorp 2.4
Caesars World 2.3
U.S. Treasury Notes 2.2
Honeywell 2.1
Hills Stores 2.1
Crown Central Petroleum 2.0
Provident Bankshares 2.0
Manville 1.8
Hubbell 1.8
Cleveland Electric Illuminating 1.8
Midlantic 1.8
Kemper 1.7
Knight-Ridder 1.7
Shawmut National 1.7
Host Marriott 1.6
Philip Morris 1.6
California Federal Bank 1.6
Ortel Corp 1.5
Biogen 1.4
Upjohn 1.4
Mellon Bank 1.4
GTE 1.4
__________________________________________________________________________
Total 49.0%
Statement of Net Assets
T. Rowe Price Value Fund / December 31, 1994
Common Stocks - 77.4%
FINANCIAL - 25.8%
Value
________
BANK & TRUST - 14.0%
3,000 shs. AmSouth Bancorporation. . . . $ 77,250
7,000 * Brooklyn Bancorp . . . . . . . . 211,750
13,000 * California Federal Bank
(Class A) . . . . . . . . . . 141,375
12,000 Hibernia (Class A) . . . . . . . 93,000
2,000 J. P. Morgan . . . . . . . . . . 112,000
4,000 Mellon Bank. . . . . . . . . . . 122,500
6,000 Midlantic. . . . . . . . . . . . 159,000
8,000 Provident Bankshares . . . . . . 174,000
9,000 Shawmut National . . . . . . . . 147,375
1,238,250
INSURANCE - 6.0%
2,500 American General . . . . . . . . 70,625
2,500 American National Insurance. . . 117,500
1,000 Chubb. . . . . . . . . . . . . . 77,375
1,500 EXEL . . . . . . . . . . . . . . 59,250
4,000 Kemper . . . . . . . . . . . . . 151,500
600 Loews. . . . . . . . . . . . . . 52,125
528,375
FINANCIAL SERVICES - 5.8%
3,000 AMBAC. . . . . . . . . . . . . . 111,750
1,500 Fannie Mae . . . . . . . . . . . 109,313
2,000 Household International. . . . . 74,250
5,000 Lehman Brothers. . . . . . . . . 73,750
3,000 Sallie Mae . . . . . . . . . . . 97,500
1,500 Travelers. . . . . . . . . . . . 48,750
515,313
Total Financial 2,281,938
UTILITIES - 5.2%
TELEPHONE - 1.4%
4,000 GTE. . . . . . . . . . . . . . . 121,500
ELECTRIC UTILITIES - 3.8%
9,000 Centerior Energy . . . . . . . . 79,875
2,000 Entergy. . . . . . . . . . . . . 43,750
3,000 Long Island Lighting . . . . . . 46,125
4,000 PacifiCorp . . . . . . . . . . . 72,500
4,000 Unicom . . . . . . . . . . . . . 96,000
338,250
Total Utilities 459,750
CONSUMER NONDURABLES - 12.9%
BEVERAGES - 1.0%
3,000 shs. Brown-Forman (Class B). . . . $ 91,500
FOOD PROCESSING - 1.8%
6,000 Pet. . . . . . . . . . . . . . . 118,500
1,800 Sara Lee . . . . . . . . . . . . 45,450
163,950
HOSPITAL SUPPLIES/HOSPITAL
MANAGEMENT - 0.3%
2,500 * AMSCO. . . . . . . . . . . . . . 22,813
PHARMACEUTICALS - 3.3%
3,000 * Biogen . . . . . . . . . . . . . 125,250
700 Eli Lilly. . . . . . . . . . . . 45,938
4,000 Upjohn . . . . . . . . . . . . . 123,000
294,188
MISCELLANEOUS CONSUMER PRODUCTS - 5.4%
2,500 American Brands. . . . . . . . . 93,750
4,000 Brunswick. . . . . . . . . . . . 75,500
5,000 Dial . . . . . . . . . . . . . . 106,250
2,500 Philip Morris. . . . . . . . . . 143,750
1,500 Tambrands. . . . . . . . . . . . 57,937
477,187
BIOTECHNOLOGY - 1.1%
6,000 * Guidant. . . . . . . . . . . . . 96,000
Total Consumer Nondurables 1,145,638
CONSUMER SERVICES - 14.0%
GENERAL MERCHANDISERS - 2.1%
9,000 * Hills Stores Company . . . . . . 186,750
SPECIALTY MERCHANDISERS - 4.1%
10,000 Hancock Fabrics. . . . . . . . . 88,750
3,000 McKesson . . . . . . . . . . . . 97,875
3,000 Petrie Stores. . . . . . . . . . 67,125
5,000 * The Sports Authority . . . . . . 105,000
358,750
MEDIA & COMMUNICATIONS - 3.9%
3,000 Knight-Ridder. . . . . . . . . . 151,500
4,000 New York Times (Class A) . . . . 88,500
3,000 Time Warner. . . . . . . . . . . 105,375
345,375
T. Rowe Price Value Fund / Statement of Net Assets
ENTERTAINMENT & LEISURE - 3.9%
3,000 shs. * Caesars World . . . . . . . . $ 200,250
15,000 * Host Marriott. . . . . . . . . . 144,375
344,625
Total Consumer Services 1,235,500
CONSUMER CYCLICALS - 2.6%
AUTOMOBILES & RELATED - 1.0%
1,000 Goodyear Tire & Rubber . . . . . 33,625
3,000 Volvo (Class B) (SEK). . . . . . 56,523
90,148
MISCELLANEOUS CONSUMER DURABLES - 1.6%
800 B. F. Goodrich . . . . . . . . . 34,700
800 * Holophane. . . . . . . . . . . . 15,000
6,000 Maytag . . . . . . . . . . . . . 90,000
139,700
Total Consumer Cyclicals 229,848
TECHNOLOGY - 5.3%
ELECTRONIC SYSTEMS - 3.5%
6,000 Honeywell. . . . . . . . . . . . 189,000
4,600 * Ortel. . . . . . . . . . . . . . 120,750
309,750
TELECOMMUNICATIONS - 0.8%
2,000 * Indosat ADR. . . . . . . . . . . 71,500
AEROSPACE & DEFENSE - 1.0%
1,200 Boeing . . . . . . . . . . . . . 56,100
3,000 * Tracor . . . . . . . . . . . . . 36,375
92,475
Total Technology 473,725
CAPITAL EQUIPMENT - 1.8%
ELECTRICAL EQUIPMENT - 1.8%
3,000 Hubbell (Class B). . . . . . . . 159,750
Total Capital Equipment 159,750
BUSINESS SERVICES & TRANSPORTATION - 0.3%
AIRLINES - 0.3%
500 * AMR. . . . . . . . . . . . . . . 26,625
Total Business Services & Transportation 26,625
ENERGY - 7.6%
ENERGY SERVICES - 2.9%
2,500 * BJ Services. . . . . . . . . 42,187
2,000 * Geophysique (FRF). . . . . . . . 113,087
2,000 shs. Halliburton . . . . . . . . . $ 66,250
1,500 Helmerich & Payne. . . . . . . . 38,438
259,962
INTEGRATED PETROLEUM-DOMESTIC - 4.7%
2,000 Amerada Hess . . . . . . . . . . 91,250
15,000 * Crown Central Petroleum. . . . . 180,000
2,000 Union Texas Petroleum. . . . . . 41,500
6,000 USX-Marathon . . . . . . . . . . 98,250
411,000
Total Energy 670,962
BASIC MATERIALS - 1.4%
METALS - 1.0%
4,000 Ashanti Goldfields GDR, (144a) . 86,000
MINING - 0.4%
3,000 Pegasus Gold . . . . . . . . . . 34,125
Total Basic Materials 120,125
CONGLOMERATES - 0.5%
20,000 LONRHO (GBP) . . . . . . . . . . 47,561
Total Conglomerates 47,561
Total Common Stocks (Cost $6,783,402) 6,851,422
Preferred Stocks - 3.6%
200 Cleveland Electric, Series S . . 159,000
7,000 Manville, $2.70, Cum.,
Series B . . . . . . . . . . . . 162,750
Total Preferred Stocks (Cost $319,060) 321,750
Convertible Bonds - 5.4%
$ 700,000 Automatic Data Processing,
LYONS, Zero Coupon,
2/20/12 . . . . . . . . . . . 287,875
200,000 Time Warner, Sub. Deb.,
8.75%, 1/10/15. . . . . . . . 189,000
Total Convertible Bonds (Cost $485,396) 476,875
U.S. Government Obligations - 5.3%
300,000 U.S. Treasury Bonds,
7.125%, 2/15/23 . . . . . . . 273,000
200,000 U.S. Treasury Notes,
7.25%, 8/15/04. . . . . . . . 191,968
Total U.S. Government Obligations
(Cost $461,705) 464,968
Options Purchased - 0.1%
46 cts. Ortel "B" puts,
1/3/95 @ 28.3125. . . . . . . $ 9,430
Total Options Purchased (Cost $6,440) 9,430
Options Written - 0.0%
46 Ortel "B" calls, 1/3/95 @ 28.3125. 0
Total Options Written (Cost ($6,440)) 0
Short-Term Investments - 6.3%
COMMERCIAL PAPER - 6.3%
$ 100,000 BMW U.S. Capital,
5.75%, 1/19/95. . . . . . . . 99,010
200,000 Ciesco L.P.,
5.71%, 1/23/95. . . . . . . . 197,875
200,000 Merrill Lynch & Co.,
5.75%, 1/17/95. . . . . . . . 198,051
64,000 President & Fellows Harvard
College, 6.00%, 1/3/95. . . . 63,957
Total Short-Term Investments (Cost $558,893) 558,893
Total Investments in Securities-98.1%
(Cost $8,608,456) 8,683,338
Other Assets Less Liabilities . . . . . . . . . . 166,585
Net Assets Consisting of:
Accumulated realized gains/losses -
net of distributions . $(3,874)
Net unrealized gain . 74,882
Paid-in-capital applicable to
864,322 shares of $0.0001 par
value capital stock outstanding;
1,000,000,000 shares authorized. . . . . . . . . . 8,778,915
NET ASSETS $8,849,923
___________
___________
NET ASSET VALUE PER SHARE $10.24
______
______
* Non-income producing
144a Security was purchased pursuant to Rule 144a under the Securities Act
of 1933 and may not be resold subject to that rule except to
qualified institutional buyers - total of such securities at
period-end amounts to 1.0% of net assets.
FRF French franc
GBP British Sterling
SEK Swedish krona
The accompanying notes are an integral part of these financial statements.
Statement of Operations
T. Rowe Price Value Fund / From September 30, 1994 (Commencement of
Operations) to December 31, 1994
INVESTMENT INCOME
Income
Dividends. . . . . . . . . . . . . . . . $33,841
Interest . . . . . . . . . . . . . . . . 28,244
_________
Total income . . . . . . . . . . . . . . 62,085
_________
Expenses
Custody and accounting . . . . . . . . . 24,145
Shareholder servicing. . . . . . . . . . 14,805
Legal and auditing . . . . . . . . . . . 6,540
Organization . . . . . . . . . . . . . . 2,580
Registration . . . . . . . . . . . . . . 1,750
Directors. . . . . . . . . . . . . . . . 1,026
Prospectus and shareholder reports . . . 364
Miscellaneous. . . . . . . . . . . . . . 104
Less: expenses reimbursed by Manager. . (35,300)
_________
Total expenses . . . . . . . . . . . . . 16,014
_________
Net investment income. . . . . . . . . . . 46,071
_________
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Securities . . . . . . . . . . . . . . . 1,150
Foreign currency transactions. . . . . . (48)
_________
Net realized gain. . . . . . . . . . . . 1,102
_________
Change in net unrealized gain or loss on:
Securities . . . . . . . . . . . . . . . 65,452
Options. . . . . . . . . . . . . . . . . 9,430
_________
Change in net unrealized gain or loss. . 74,882
_________
Net realized and unrealized gain . . . . . 75,984
_________
INCREASE IN NET ASSETS FROM OPERATIONS . . $122,055
_________
_________
The accompanying notes are an integral part of these financial statements.
Statement of Changes in Net Assets
T. Rowe Price Value Fund / From September 30, 1994 (Commencement of
Operations) to December 31, 1994
INCREASE (DECREASE) IN NET ASSETS FROM
Operations
Net investment income. . . . . . . . . . $ 46,071
Net realized gain. . . . . . . . . . . . 1,102
Change in net unrealized gain or loss. . 74,882
_________
Increase in net assets from operations . 122,055
_________
Distributions to shareholders
Net investment income. . . . . . . . . . (52,898)
Net realized gain. . . . . . . . . . . . ( 4,976)
_________
Decrease in net assets from distributions. . . (57,874)
_________
Capital share transactions1
Shares sold. . . . . . . . . . . . . . . 9,175,437
Distributions reinvested . . . . . . . . 55,144
Shares redeemed. . . . . . . . . . . . . (567,154)
_________
Increase in net assets from capital
share transactions . . . . . . . . . . . 8,663,427
_________
Net equalization . . . . . . . . . . . . . 22,315
_________
Increase in net assets . . . . . . . . . . 8,749,923
NET ASSETS
Beginning of period. . . . . . . . . . . . 100,000
_________
End of period. . . . . . . . . . . . . . . $8,849,923
_________
_________
1Capital share transactions (number of shares)
Shares sold. . . . . . . . . . . . . . . 904,570
Distributions reinvested . . . . . . . . 5,417
Shares redeemed. . . . . . . . . . . . . (56,665)
_________
Increase in capital shares outstanding . 854,322
_________
_________
The accompanying notes are an integral part of these financial statements.
Notes to Financial Statements
T. Rowe Price Value Fund / December 31, 1994
Note 1 - Significant Accounting Policies
T. Rowe Price Value Fund (the Fund) is registered under the Investment Company
Act of 1940 as a diversified, open-end management investment company.
A) Valuation - Equity securities listed or regularly traded on a securities
exchange (including Nasdaq) are valued at the last quoted sales price on the
day the valuations are made. A security which is listed or traded on more
than one exchange is valued at the quotation
Notes to Financial Statements (cont'd.)
on the exchange determined to be the primary market for such security. Other
equity securities and those listed securities that are not traded on a
particular day are valued at a price within the limits of the latest bid and
asked prices deemed by the Board of Directors, or by persons delegated by the
Board, best to reflect fair value. In the absence of a last sale price,
purchased and written options are valued at the latest bid and asked prices,
respectively.
Debt securities are generally traded in the over-the-counter market and
are valued at a price deemed best to reflect fair value as quoted by dealers
who make markets in these securities or by an independent pricing service.
Short-term debt securities are valued at their cost which, when combined with
accrued interest, approximates fair value.
For purposes of determining the Fund's net asset value per share, the
U.S. dollar value of all assets and liabilities initially expressed in foreign
currencies is determined by using the mean of the bid and offer prices of such
currencies against U.S. dollars quoted by a major bank.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair value
as determined in good faith by or under the supervision of the officers of the
Fund, as authorized by the Board of Directors.
B) Currency translation - Assets and liabilities are converted into U.S.
dollars at the prevailing exchange rate at the end of the reporting period.
Purchases and sales of securities and income and expenses are translated into
U.S. dollars at the prevailing exchange rate on the dates of such
transactions. The effect of changes in foreign exchange rates on realized and
unrealized security gains or losses is reflected as a component of such gains
or losses.
C) Discounts and Premiums - Discounts and premiums on debt securities are
amortized for both financial and tax reporting purposes.
D) Other - Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses
are reported on an identified cost basis. Dividend income and distributions to
shareholders are recorded by the Fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with federal income
tax regulations and may differ from those determined in accordance with
generally accepted accounting principles. The Fund follows the practice of
equalization under which undistributed net investment income per share is
unaffected by Fund shares sold or redeemed.
Note 2 - Organization
The Fund was organized on September 21, 1994, and had no operations prior to
September 30, 1994, other than those related to organizational matters,
including the sale of 10,000 shares of its capital stock at $10.00 per share
on September 26, 1994 to T. Rowe Price Associates, Inc.
Note 3 - Investment Transactions
Purchases and sales of portfolio securities, other than short-term and U.S.
Government securities, aggregated $8,080,310 and $497,659, respectively, for
the period ended December 31, 1994.
Note 4 - Federal Income Taxes
No provision for federal income taxes is required since the Fund intends to
qualify as a regulated investment company and distribute all of its taxable
income.
In order for the Fund's capital accounts and distributions to
shareholders to reflect the tax character of certain transactions, $15,488 of
undistributed net investment income was reclassified as an increase to
paid-in-capital during the period ended December 31, 1994. The results of
operations and net assets were not affected by the reclassification.
At December 31, 1994, the aggregate cost of investments for federal
income tax and financial reporting purposes was $8,608,456 and net unrealized
gain aggregated $74,882, of which $337,265 related to appreciated investments
and $262,383 to depreciated investments.
Note 5 - Related Party Transactions
The investment management agreement between the Fund and T. Rowe Price
Associates, Inc. (the Manager) provides for an annual investment management
fee. The fee is computed daily and paid monthly, consisting of an Individual
Fund Fee equal to 0.35% of average daily net assets and a Group Fee. The
Group Fee is based on the combined assets of certain mutual funds sponsored by
the Manager or Rowe-Price Fleming International, Inc. (the Group). The Group
Fee rate ranges from 0.48% for the first $1 billion of assets to 0.31% for
assets in excess of $34 billion. At December 31, 1994, and for the year then
ended, the effective annual Group Fee rate was 0.34%. The Fund pays a pro
rata share of the Group Fee based on the ratio of its net assets to those of
the Group.
Under the terms of the investment management agreement, the Manager is
required to bear any expenses through December 31, 1996, which would cause the
Fund's ratio of expenses to average net assets to exceed 1.10%. Thereafter
through December 31, 1998, the Fund is required to reimburse the Manager for
these expenses, provided that average net assets have grown or expenses have
declined sufficiently to allow reimbursement without causing the Fund's ratio
of expenses to average net assets to exceed 1.10%. Pursuant to this
agreement, $9,926 of management fees were not accrued by the Fund for the
period ended December 31, 1994, and $35,300 of other expenses were borne by
the Manager.
In addition, the Fund has entered into agreements with the Manager and
two wholly-owned subsidiaries of the Manager, pursuant to which the Fund
receives certain other services. The Manager computes the daily share price
and maintains the financial records of the Fund. T. Rowe Price Services, Inc.
(TRPS) is the Fund's transfer and dividend disbursing agent and provides
shareholder and administrative services to the Fund. T. Rowe Price Retirement
Plan Services, Inc. provides subaccounting and recordkeeping services for
certain retirement accounts invested in the Fund. The Fund incurred expenses
pursuant to these related party agreements totaling approximately $28,867 for
the period ended Decem-ber 31, 1994, of which $7,374 was payable at period
end.
Financial Highlights
T. Rowe Price Value Fund / From September 30, 1994 (Commencement of
Operations) to December 31, 1994
For a share outstanding
throughout the period
________________________
NET ASSET VALUE,
BEGINNING OF PERIOD . . . . . . . . . . . $10.00
______
Investment Activities
Net investment income. . . . . . . . . . 0.08*
Net realized and unrealized gain . . . . 0.23
______
Total from Investment Activities . . . . . 0.31
______
Distributions
Net investment income. . . . . . . . . . (0.07)
______
NET ASSET VALUE, END OF PERIOD . . . . . . $10.24
______
______
RATIOS/SUPPLEMENTAL DATA
Total Return . . . . . . . . . . . . . . . 3.1%*
Ratio of Expenses to Average Net Assets. . 1.10%!*
Ratio of Net Investment Income
to Average Net Assets. . . . . . . . . . 3.16%!*
Portfolio Turnover Rate. . . . . . . . . . 30.8%!
Net Assets, End of Period. . . . . . . . . $8,849,923
! Annualized.
* Excludes expenses in excess of a 1.10% voluntary expense limitation in
effect through December 31, 1996.
Report of Independent Accountants
To the Shareholders and Board of Directors
of T. Rowe Price Value Fund, Inc.
We have audited the accompanying statement of net assets of T. Rowe
Price Value Fund, Inc. as of December 31, 1994, and the related statement of
operations, the statement of changes in net assets and the financial
highlights for the period September 30, 1994 (commencement of operations) to
December 31, 1994. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of investments
owned as of December 31, 1994, by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights,
referred to above, present fairly, in all material respects, the financial
position of T. Rowe Price Value Fund, Inc. as of December 31, 1994, the
results of its operations, the changes in its net assets and financial
highlights for the period stated in the first paragraph in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
January 23, 1995
Chart 1 - Security Diversification
Pie chart for Value Fund annual report (Dec. 31, 1994)
Entitled "Security Diversification": shows Common Stocks 78%, Bonds 5%,
Convertibles 5%, Preferred Stocks 4%, and Cash Reserves 8%
