PFG Valuation

Principal Financial Group Inc

Add to Watchlist

Advanced Chart

80.180

+0.24(0.300%)1D

Overview
Forecast
Valuation
Earnings

PFG Relative Valuation

PFG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, PFG is overvalued; if below, it's undervalued.

Historical Valuation

Principal Financial Group Inc (PFG) is now in the Undervalued zone, suggesting that its current forward PE ratio of 9.19 is considered Undervalued compared with the five-year average of 10.42. The fair price of Principal Financial Group Inc (PFG) is between 88.36 to 108.34 according to relative valuation methord. Compared to the current price of 79.94 USD , Principal Financial Group Inc is Undervalued By 9.53%.

Relative Value

Fair Zone

88.36-108.34

Current Price：79.94

9.53%

Undervalued

9.19

Trailing

Forward

0.00

EV/EBITDA

Principal Financial Group Inc. (PFG) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 0.40. The thresholds are as follows: Strongly Undervalued below -2.69, Undervalued between -2.69 and -1.15, Fairly Valued between 1.94 and -1.15, Overvalued between 1.94 and 3.49, and Strongly Overvalued above 3.49. The current Forward EV/EBITDA of 0.00 falls within the Historic Trend Line -Fairly Valued range.

6.97

EV/EBIT

Principal Financial Group Inc. (PFG) has a current EV/EBIT of 6.97. The 5-year average EV/EBIT is 8.17. The thresholds are as follows: Strongly Undervalued below 5.90, Undervalued between 5.90 and 7.03, Fairly Valued between 9.30 and 7.03, Overvalued between 9.30 and 10.44, and Strongly Overvalued above 10.44. The current Forward EV/EBIT of 6.97 falls within the Undervalued range.

1.08

Principal Financial Group Inc. (PFG) has a current PS of 1.08. The 5-year average PS is 1.22. The thresholds are as follows: Strongly Undervalued below 0.83, Undervalued between 0.83 and 1.03, Fairly Valued between 1.41 and 1.03, Overvalued between 1.41 and 1.61, and Strongly Overvalued above 1.61. The current Forward PS of 1.08 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/OCF

Principal Financial Group Inc. (PFG) has a current P/OCF of 0.00. The 5-year average P/OCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/OCF of 0.00 falls within the Strongly Undervalued range.

11.39

P/FCF

Principal Financial Group Inc. (PFG) has a current P/FCF of 11.39. The 5-year average P/FCF is 4.75. The thresholds are as follows: Strongly Undervalued below -7.72, Undervalued between -7.72 and -1.49, Fairly Valued between 10.98 and -1.49, Overvalued between 10.98 and 17.22, and Strongly Overvalued above 17.22. The current Forward P/FCF of 11.39 falls within the Overvalued range.

Principal Financial Group Inc (PFG) has a current Price-to-Book (P/B) ratio of 1.56. Compared to its 3-year average P/B ratio of 1.77 , the current P/B ratio is approximately -11.56% higher. Relative to its 5-year average P/B ratio of 1.51, the current P/B ratio is about 3.41% higher. Principal Financial Group Inc (PFG) has a Forward Free Cash Flow (FCF) yield of approximately 23.99%. Compared to its 3-year average FCF yield of 20.06%, the current FCF yield is approximately 19.58% lower. Relative to its 5-year average FCF yield of 19.80% , the current FCF yield is about 21.14% lower.

1.56

P/B

Median3y

1.77

Median5y

1.51

23.99

FCF Yield

Median3y

20.06

Median5y

19.80

Competitors Valuation Multiple

The average P/S ratio for PFG's competitors is 3.41, providing a benchmark for relative valuation. Principal Financial Group Inc Corp (PFG) exhibits a P/S ratio of 1.08, which is -68.17% above the industry average. Given its robust revenue growth of -10.83%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

PFG.O

Principal Financial Group Inc

Franklin Resources Inc

T Rowe Price Group Inc

3.19

2.61%

23.20B

Performance Decomposition

Market capitalization of PFG decreased by 4.45% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 8.75 to 11.92.

The secondary factor is the Revenue Growth, contributed -10.83%to the performance.

Overall, the performance of PFG in the past 1 year is driven by Margin Expansion. Which is more sustainable.

-10.83%

4.08B → 3.64B

Revenue Growth

36.23%

8.75 → 11.92

Margin Expansion

-29.85%

22.97 → 16.11

P/E Change

-4.45%