Prudential Financial, Inc.

NYSE:PRU Stock Report

Market Cap: US$45.5b

Prudential Financial Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 ($127.89) is trading below our estimate of fair value ($234.05)

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 Ratio11.2x
EarningsUS$4.06b
Market CapUS$45.53b

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 Average13.9x
MET MetLife
16.8x13.2%US$60.0b
AFL Aflac
16.4x-1.7%US$62.4b
UNM Unum Group
7.9x-3.9%US$13.8b
PRI Primerica
14.6x6.8%US$10.1b
PRU Prudential Financial
11.2x6.8%US$45.5b

Price-To-Earnings vs Peers: PRU is good value based on its Price-To-Earnings Ratio (11.2x) compared to the peer average (13.9x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
UTGN UTG
2xn/aUS$89.08m
AORE.F American Overseas Group
2.1xn/aUS$16.68m
CUII China United Insurance Service
0.0003xn/aUS$3.13k
No more companies available in this PE range
PRU 11.2xIndustry Avg. 13.7xNo. of Companies15PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PRU is good value based on its Price-To-Earnings Ratio (11.2x) compared to the US Insurance industry average (13.7x).

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 Ratio11.2x
Fair PE Ratio14.9x

Price-To-Earnings vs Fair Ratio: PRU is good value based on its Price-To-Earnings Ratio (11.2x) compared to the estimated Fair Price-To-Earnings Ratio (14.9x).

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
CurrentUS$127.89
US$128.54
+0.5%
8.1%US$149.00US$108.00n/a13
Nov ’25US$121.28
US$124.54
+2.7%
7.0%US$144.00US$108.00n/a13
Oct ’25US$119.36
US$120.00
+0.5%
6.6%US$140.00US$108.00n/a13
Sep ’25US$121.16
US$119.50
-1.4%
5.7%US$132.00US$108.00n/a12
Aug ’25US$122.49
US$118.42
-3.3%
9.3%US$144.00US$99.00n/a12
Jul ’25US$117.53
US$115.00
-2.2%
9.0%US$141.00US$99.00n/a12
Jun ’25US$120.35
US$115.17
-4.3%
9.3%US$143.00US$99.00n/a12
May ’25US$112.30
US$113.08
+0.7%
6.3%US$125.00US$99.00n/a13
Apr ’25US$116.29
US$109.15
-6.1%
5.3%US$118.00US$99.00n/a13
Mar ’25US$108.01
US$109.15
+1.1%
5.3%US$118.00US$99.00n/a13
Feb ’25US$102.69
US$106.47
+3.7%
8.5%US$132.00US$92.00n/a15
Jan ’25US$103.71
US$102.80
-0.9%
10.4%US$132.00US$87.00n/a15
Dec ’24US$97.74
US$101.41
+3.8%
9.1%US$125.00US$87.00n/a16
Nov ’24US$91.32
US$100.09
+9.6%
10.1%US$125.00US$84.00US$121.2816
Oct ’24US$94.89
US$100.53
+5.9%
10.3%US$125.00US$84.00US$119.3616
Sep ’24US$96.09
US$99.09
+3.1%
12.8%US$125.00US$70.00US$121.1616
Aug ’24US$96.34
US$95.17
-1.2%
11.5%US$121.00US$70.00US$122.4915
Jul ’24US$88.22
US$92.20
+4.5%
11.6%US$114.00US$70.00US$117.5315
Jun ’24US$80.13
US$92.80
+15.8%
12.6%US$114.00US$68.00US$120.3515
May ’24US$86.31
US$94.25
+9.2%
11.7%US$114.00US$68.00US$112.3016
Apr ’24US$82.74
US$99.53
+20.3%
13.0%US$116.00US$65.00US$116.2915
Mar ’24US$99.95
US$103.67
+3.7%
7.8%US$116.00US$85.00US$108.0115
Feb ’24US$104.26
US$103.27
-1.0%
8.1%US$118.00US$85.00US$102.6915
Jan ’24US$99.46
US$103.40
+4.0%
6.9%US$118.00US$90.00US$103.7115
Dec ’23US$107.73
US$103.67
-3.8%
7.0%US$118.00US$90.00US$97.7415
Nov ’23US$106.00
US$99.69
-6.0%
9.2%US$118.00US$80.00US$91.3216

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

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