Prudential plc

LSE:PRU Stock Report

Market Cap: UK£17.8b

Prudential Valuation

Is PRU 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 PRU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
UK£18.77
Fair Value
63.9% undervalued intrinsic discount
15
Number of Analysts

Below Fair Value: PRU (£6.77) is trading below our estimate of fair value (£18.77)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PRU. This is calculated by dividing PRU's market cap by their current earnings.
What is PRU's PE Ratio?
PE Ratio25.3x
EarningsUS$877.00m
Market CapUS$22.19b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PRU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average40x
LGEN Legal & General Group
49.6x25.2%UK£13.9b
JUST Just Group
19.2x11.3%UK£1.7b
CSN Chesnara
80.5x45.0%UK£402.4m
AV. Aviva
10.7x5.5%UK£13.7b
PRU Prudential
25.3x22.8%UK£17.8b

Price-To-Earnings vs Peers: PRU is good value based on its Price-To-Earnings Ratio (25.3x) compared to the peer average (40x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
PRU 25.3xIndustry Avg. 12.1xNo. of Companies13PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PRU is expensive based on its Price-To-Earnings Ratio (25.3x) compared to the European Insurance industry average (12.1x).

Price to Earnings Ratio vs Fair Ratio

What is PRU'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.

PRU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.3x
Fair PE Ratio18.2x

Price-To-Earnings vs Fair Ratio: PRU is expensive based on its Price-To-Earnings Ratio (25.3x) compared to the estimated Fair Price-To-Earnings Ratio (18.2x).

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 PRU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£6.77
UK£11.31
+66.9%
18.4%UK£16.10UK£8.70n/a15
Jan ’26UK£6.37
UK£11.47
+80.1%
18.2%UK£16.10UK£8.70n/a15
Dec ’25UK£6.42
UK£11.60
+80.7%
17.5%UK£16.10UK£8.60n/a15
Nov ’25UK£6.44
UK£11.61
+80.3%
17.8%UK£16.10UK£8.65n/a15
Oct ’25UK£6.92
UK£11.54
+66.8%
17.9%UK£16.10UK£8.65n/a15
Sep ’25UK£6.52
UK£11.62
+78.2%
18.4%UK£16.10UK£8.65n/a15
Aug ’25UK£6.67
UK£12.06
+80.7%
16.4%UK£16.10UK£8.80n/a16
Jul ’25UK£7.14
UK£12.20
+70.8%
16.9%UK£16.10UK£8.90n/a16
Jun ’25UK£7.47
UK£12.34
+65.2%
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£7.43
UK£12.98
+74.6%
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£8.06
UK£13.59
+68.5%
20.2%UK£18.90UK£9.00UK£6.7818
Jan ’25UK£8.87
UK£14.30
+61.2%
15.0%UK£18.90UK£11.30UK£6.3718
Dec ’24UK£8.69
UK£14.30
+64.6%
15.0%UK£18.90UK£11.30UK£6.4218
Nov ’24UK£8.58
UK£14.57
+69.8%
14.8%UK£19.50UK£11.30UK£6.4418
Oct ’24UK£8.89
UK£15.01
+68.9%
13.8%UK£19.55UK£11.30UK£6.9218
Sep ’24UK£9.70
UK£15.21
+56.8%
13.2%UK£19.55UK£10.80UK£6.5219
Aug ’24UK£10.60
UK£15.46
+45.9%
13.6%UK£19.55UK£10.20UK£6.6719
Jul ’24UK£11.09
UK£15.79
+42.5%
13.4%UK£20.20UK£10.20UK£7.1419
Jun ’24UK£10.91
UK£15.72
+44.1%
12.8%UK£19.00UK£10.10UK£7.4719
May ’24UK£12.12
UK£15.71
+29.6%
12.9%UK£19.00UK£10.10UK£7.0519
Apr ’24UK£11.02
UK£15.61
+41.6%
13.1%UK£19.00UK£10.20UK£7.4319
Mar ’24UK£12.94
UK£15.71
+21.4%
12.6%UK£19.00UK£10.20UK£7.8219
Feb ’24UK£13.46
UK£15.26
+13.4%
13.7%UK£19.00UK£10.20UK£8.0619
Analyst Price Target
Consensus Narrative from 15 Analysts
UK£11.31
Fair Value
40.1% undervalued intrinsic discount
15
Number of Analysts

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/06 02:52
End of Day Share Price 2025/02/06 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

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

Prudential plc is covered by 50 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Pierre-Yves GauthierAlphaValue
Ishan MajumdarBaptista Research
Larissa Van DeventerBarclays