Prudential plc

BATS-CHIXE:PRUL Stock Report

Market Cap: UK£16.9b

Prudential Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair 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 PRUL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PRUL (£6.34) is trading below our estimate of fair value (£15.65)

Significantly Below Fair Value: PRUL is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PRUL. This is calculated by dividing PRUL's market cap by their current earnings.
What is PRUL's PE Ratio?
PE Ratio24.1x
EarningsUS$877.00m
Market CapUS$21.15b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PRUL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.2x
LGEN Legal & General Group
46x28.0%UK£12.9b
JUST Just Group
16.5x8.2%UK£1.4b
CSN Chesnara
76.3x11.8%UK£381.3m
AV. Aviva
10.1x4.2%UK£12.9b
PRUL Prudential
24.1x28.4%UK£16.9b

Price-To-Earnings vs Peers: PRUL is good value based on its Price-To-Earnings Ratio (24.1x) compared to the peer average (37.2x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
No. of Companies13PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PRUL is expensive based on its Price-To-Earnings Ratio (24.1x) compared to the European Insurance industry average (11.9x).

Price to Earnings Ratio vs Fair Ratio

What is PRUL'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.

PRUL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.1x
Fair PE Ratio16.8x

Price-To-Earnings vs Fair Ratio: PRUL is expensive based on its Price-To-Earnings Ratio (24.1x) compared to the estimated Fair Price-To-Earnings Ratio (16.8x).

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 PRUL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£6.34
UK£11.60
+82.9%
17.5%UK£16.10UK£8.60n/a15
Nov ’25UK£6.45
UK£11.61
+80.0%
17.8%UK£16.10UK£8.65n/a15
Oct ’25UK£6.90
UK£11.54
+67.3%
17.9%UK£16.10UK£8.65n/a15
Sep ’25UK£6.53
UK£11.62
+78.0%
18.4%UK£16.10UK£8.65n/a15
Aug ’25UK£6.68
UK£12.06
+80.4%
16.4%UK£16.10UK£8.80n/a16
Jul ’25UK£7.16
UK£12.20
+70.3%
16.9%UK£16.10UK£8.90n/a16
Jun ’25UK£7.51
UK£12.34
+64.3%
16.9%UK£16.10UK£8.60n/a16
May ’25UK£7.05
UK£12.62
+78.9%
19.4%UK£17.50UK£8.30n/a16
Apr ’25UK£7.42
UK£12.98
+74.8%
21.2%UK£17.67UK£8.30n/a16
Mar ’25UK£7.82
UK£13.55
+73.1%
19.7%UK£18.00UK£9.00n/a18
Feb ’25UK£8.05
UK£13.59
+68.7%
20.2%UK£18.90UK£9.00n/a18
Jan ’25UK£8.84
UK£14.30
+61.7%
15.0%UK£18.90UK£11.30n/a18
Dec ’24UK£8.68
UK£14.30
+64.9%
15.0%UK£18.90UK£11.30n/a18
Nov ’24UK£8.57
UK£14.57
+70.0%
14.8%UK£19.50UK£11.30UK£6.4518
Oct ’24UK£8.92
UK£15.01
+68.2%
13.8%UK£19.55UK£11.30UK£6.9018
Sep ’24UK£9.73
UK£15.21
+56.3%
13.2%UK£19.55UK£10.80UK£6.5319
Aug ’24UK£10.60
UK£15.46
+45.8%
13.6%UK£19.55UK£10.20UK£6.6819
Jul ’24UK£11.07
UK£15.79
+42.7%
13.4%UK£20.20UK£10.20UK£7.1619
Jun ’24UK£10.92
UK£15.72
+44.1%
12.8%UK£19.00UK£10.10UK£7.5119
May ’24UK£12.14
UK£15.71
+29.4%
12.9%UK£19.00UK£10.10UK£7.0519
Apr ’24UK£11.04
UK£15.61
+41.4%
13.1%UK£19.00UK£10.20UK£7.4219
Mar ’24UK£12.93
UK£15.71
+21.5%
12.6%UK£19.00UK£10.20UK£7.8219
Feb ’24UK£13.41
UK£15.26
+13.9%
13.7%UK£19.00UK£10.20UK£8.0519
Jan ’24UK£11.33
UK£14.15
+25.0%
11.7%UK£16.70UK£11.00UK£8.8419
Dec ’23UK£10.15
UK£14.39
+41.9%
11.2%UK£16.70UK£11.00UK£8.6818
Nov ’23UK£8.44
UK£14.52
+72.0%
10.5%UK£16.70UK£11.00UK£8.5718

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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