Principal Financial Group, Inc.

NasdaqGS:PFG Stock Report

Market Cap: US$17.7b

Principal Financial Group Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: PFG ($77.3) is trading below our estimate of fair value ($170.62)

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

Key Valuation Metric

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

Key metric: As PFG is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for PFG. This is calculated by dividing PFG's market cap by their current revenue.
What is PFG's PS Ratio?
PS Ratio1.3x
SalesUS$14.07b
Market CapUS$17.68b

Price to Sales Ratio vs Peers

How does PFG's PS Ratio compare to its peers?

The above table shows the PS ratio for PFG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.5x
UNM Unum Group
1x4.2%US$13.1b
PRI Primerica
2.9x3.4%US$9.1b
GL Globe Life
1.6x4.8%US$9.2b
PRU Prudential Financial
0.6x-4.6%US$41.9b
PFG Principal Financial Group
1.3x7.8%US$17.7b

Price-To-Sales vs Peers: PFG is good value based on its Price-To-Sales Ratio (1.3x) compared to the peer average (1.5x).

Price to Sales Ratio vs Industry

How does PFG's PS Ratio compare vs other companies in the US Insurance Industry?

11 CompaniesPrice / SalesEstimated GrowthMarket Cap
GOCO GoHealth
0.2x7.5%US$292.73m
CCG Cheche Group
0.1x5.4%US$64.38m
AIFU AIX
0.2x15.8%US$61.24m
AAME Atlantic American
0.2xn/aUS$30.19m
PFG 1.3xIndustry Avg. 1.1xNo. of Companies20PS00.81.62.43.24+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: PFG is expensive based on its Price-To-Sales Ratio (1.3x) compared to the US Insurance industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

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

PFG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.3x
Fair PS Ratio1.8x

Price-To-Sales vs Fair Ratio: PFG is good value based on its Price-To-Sales Ratio (1.3x) compared to the estimated Fair Price-To-Sales Ratio (1.8x).

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 PFG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$77.30
US$88.67
+14.7%
8.3%US$99.00US$75.00n/a12
Dec ’25US$87.09
US$89.92
+3.2%
6.4%US$99.00US$77.00n/a12
Nov ’25US$82.18
US$88.17
+7.3%
6.2%US$99.00US$77.00n/a12
Oct ’25US$85.14
US$84.85
-0.3%
9.3%US$99.00US$70.00n/a13
Sep ’25US$81.42
US$85.75
+5.3%
8.8%US$99.00US$70.00n/a12
Aug ’25US$79.46
US$85.92
+8.1%
8.8%US$99.00US$70.00n/a12
Jul ’25US$78.01
US$83.73
+7.3%
6.8%US$89.00US$68.00n/a11
Jun ’25US$82.04
US$83.36
+1.6%
7.4%US$89.00US$68.00n/a11
May ’25US$79.85
US$82.82
+3.7%
7.4%US$89.00US$68.00n/a11
Apr ’25US$86.01
US$82.45
-4.1%
6.8%US$88.00US$68.00n/a11
Mar ’25US$80.05
US$82.45
+3.0%
6.8%US$88.00US$68.00n/a11
Feb ’25US$77.73
US$78.92
+1.5%
8.1%US$88.00US$68.00n/a12
Jan ’25US$78.67
US$75.58
-3.9%
8.9%US$86.00US$62.00n/a12
Dec ’24US$74.53
US$74.77
+0.3%
8.8%US$86.00US$62.00US$87.0913
Nov ’24US$67.26
US$74.62
+10.9%
8.9%US$86.00US$62.00US$82.1813
Oct ’24US$72.07
US$77.31
+7.3%
9.7%US$87.00US$64.00US$85.1413
Sep ’24US$78.43
US$77.69
-0.9%
9.3%US$87.00US$64.00US$81.4213
Aug ’24US$79.09
US$77.69
-1.8%
9.3%US$87.00US$64.00US$79.4613
Jul ’24US$75.84
US$76.31
+0.6%
10.7%US$94.00US$64.00US$78.0113
Jun ’24US$66.98
US$76.23
+13.8%
11.4%US$94.00US$60.00US$82.0413
May ’24US$73.98
US$76.14
+2.9%
11.0%US$94.00US$60.00US$79.8514
Apr ’24US$74.32
US$79.15
+6.5%
12.9%US$94.00US$58.00US$86.0113
Mar ’24US$91.23
US$83.77
-8.2%
12.5%US$100.00US$65.00US$80.0513
Feb ’24US$92.08
US$82.46
-10.4%
12.3%US$100.00US$65.00US$77.7313
Jan ’24US$83.92
US$78.46
-6.5%
11.7%US$90.00US$61.00US$78.6713
Dec ’23US$90.92
US$78.46
-13.7%
11.7%US$90.00US$61.00US$74.5313

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 03:16
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
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 here.

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 .

Analyst Sources

Principal Financial Group, Inc. is covered by 28 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
null nullArgus Research Company
John HeagertyAtlantic Equities LLP
Jay GelbBarclays