Principal Financial Group, Inc.

DB:PG4 Stock Report

Market Cap: €20.8b

Principal Financial Group Valuation

Is PG4 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of PG4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

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Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: PG4 (€93.5) is trading below our estimate of future cash flow value (€218.86)

Significantly Below Future Cash Flow Value: PG4 is trading below future cash flow value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PG4?

Key metric: As PG4 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for PG4. This is calculated by dividing PG4's market cap by their current earnings.
What is PG4's PE Ratio?
PE Ratio15.1x
EarningsUS$1.56b
Market CapUS$23.63b

Price to Earnings Ratio vs Peers

How does PG4's PE Ratio compare to its peers?

The above table shows the PE ratio for PG4 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.7x
WUW Wüstenrot & Württembergische
11.3x15.63%€1.4b
HNR1 Hannover Rück
10.6x1.77%€30.5b
TLX Talanx
11.2x4.57%€29.7b
MUV2 Münchener Rückversicherungs-Gesellschaft in München
9.5x-5.43%€64.0b
PG4 Principal Financial Group
15.1x11.52%€23.6b

Price-To-Earnings vs Peers: PG4 is expensive based on its Price-To-Earnings Ratio (15.1x) compared to the peer average (10.7x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does PG4's PE Ratio compare vs other companies in the European Insurance Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
PG4 15.1xIndustry Avg. 13.1xNo. of Companies13PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PG4 is expensive based on its Price-To-Earnings Ratio (15.1x) compared to the European Insurance industry average (13.1x).

Price to Earnings Ratio vs Fair Ratio

What is PG4's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PG4 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.1x
Fair PE Ratio13.8x

Price-To-Earnings vs Fair Ratio: PG4 is expensive based on its Price-To-Earnings Ratio (15.1x) compared to the estimated Fair Price-To-Earnings Ratio (13.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst PG4 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€93.50
€93.33
-0.18%
8.80%€109.63€80.68n/a12
Jul ’27€93.50
€89.49
-4.29%
9.30%€109.40€76.14n/a12
Jun ’27€87.50
€87.37
-0.15%
7.21%€97.27€74.89n/a12
May ’27€84.00
€85.08
+1.28%
6.63%€96.78€74.52n/a12
Apr ’27€76.50
€82.06
+7.27%
7.34%€92.05€72.08n/a12
Mar ’27€80.00
€80.08
+0.10%
7.63%€89.78€70.30n/a11
Feb ’27€79.00
€77.06
-2.46%
8.24%€87.92€68.01n/a11
Jan ’27€75.00
€76.34
+1.78%
9.59%€87.36€62.77n/a11
Dec ’26€73.00
€77.28
+5.86%
8.74%€89.35€64.20n/a12
Nov ’26€72.00
€76.48
+6.23%
9.81%€89.35€64.20n/a12
Oct ’26€70.00
€73.54
+5.06%
10.12%€86.03€61.33n/a12
Sep ’26€68.50
€73.71
+7.61%
10.35%€86.57€61.71n/a12
Aug ’26€65.00
€75.98
+16.89%
10.35%€88.46€63.06n/a12
Jul ’26€67.00
€71.46
+6.66%
10.81%€85.75€59.77€93.5012
Jun ’26€69.00
€73.10
+5.95%
10.81%€87.72€61.14€87.5012
May ’26€63.50
€71.11
+11.98%
12.25%€87.00€57.12€84.0012
Apr ’26€78.00
€80.73
+3.50%
8.08%€91.22€68.18€76.5013
Mar ’26€84.50
€84.48
-0.025%
8.08%€95.46€71.35€80.0013
Feb ’26€80.00
€83.91
+4.89%
9.66%€94.90€66.14€79.0013
Jan ’26€74.00
€84.98
+14.84%
8.29%€94.88€71.88€75.0012
Dec ’25€82.00
€84.97
+3.62%
6.40%€93.56€72.77€73.0012
Nov ’25€76.00
€81.18
+6.82%
6.19%€91.16€70.90€72.0012
Oct ’25€76.50
€76.57
+0.085%
9.32%€89.34€63.17€70.0013
Sep ’25€72.50
€77.42
+6.79%
8.82%€89.39€63.20€68.5012
Aug ’25€75.00
€79.47
+5.96%
8.75%€91.58€64.75€65.0012
Jul ’25€72.00
€78.16
+8.55%
6.82%€83.08€63.48€67.0011
€90.95
Fair Value
2.8% overvalued intrinsic discount
12
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/07/26 19:35
End of Day Share Price 2026/07/24 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Principal Financial Group, Inc. is covered by 25 analysts. 8 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullArgus Research Company
Jay GelbBarclays
Taylor ScottBarclays