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.

Below Fair Value: PRU (£6.44) is trading below our estimate of fair value (£15.84)

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?

Other financial metrics that can be useful for relative valuation.

PRU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.1x
Enterprise Value/EBITDA6.1x
PEG Ratio0.9x

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 Average36.9x
LGEN Legal & General Group
45.8x28.0%UK£12.9b
JUST Just Group
15.9x7.2%UK£1.4b
CSN Chesnara
76.3x11.8%UK£381.3m
AV. Aviva
9.6x3.8%UK£12.2b
PRU Prudential
25.5x28.3%UK£17.2b

Price-To-Earnings vs Peers: PRU is good value based on its Price-To-Earnings Ratio (25.5x) compared to the peer average (36.9x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a18.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a18.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: PRU is expensive based on its Price-To-Earnings Ratio (25.5x) compared to the European Insurance industry average (11.1x).


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 Ratio25.5x
Fair PE Ratio17x

Price-To-Earnings vs Fair Ratio: PRU is expensive based on its Price-To-Earnings Ratio (25.5x) compared to the estimated Fair Price-To-Earnings Ratio (17x).


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£6.50
UK£11.61
+78.6%
17.8%UK£16.10UK£8.60n/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£9.00n/a18
Jan ’25UK£8.87
UK£14.30
+61.2%
15.0%UK£18.90UK£11.30n/a18
Dec ’24UK£8.69
UK£14.30
+64.6%
15.0%UK£18.90UK£11.30n/a18
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
Jan ’24UK£11.28
UK£14.15
+25.5%
11.7%UK£16.70UK£11.00UK£8.8719
Dec ’23UK£10.16
UK£14.39
+41.7%
11.2%UK£16.70UK£11.00UK£8.6918
Nov ’23UK£8.44
UK£14.52
+72.1%
10.5%UK£16.70UK£11.00UK£8.5818

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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