PRU Valuation

Prudential Financial Inc

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103.750

-1.46(-1.388%)1D

Overview
Forecast
Valuation
Earnings

PRU Relative Valuation

PRU'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, PRU is overvalued; if below, it's undervalued.

Historical Valuation

Prudential Financial Inc (PRU) is now in the Undervalued zone, suggesting that its current forward PE ratio of 7.71 is considered Undervalued compared with the five-year average of 8.24. The fair price of Prudential Financial Inc (PRU) is between 105.56 to 137.52 according to relative valuation methord. Compared to the current price of 105.21 USD , Prudential Financial Inc is Undervalued By 0.33%.

Relative Value

Fair Zone

105.56-137.52

Current Price：105.21

0.33%

Undervalued

7.59

Trailing

Forward

0.00

EV/EBITDA

Prudential Financial Inc. (PRU) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA 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 EV/EBITDA of 0.00 falls within the Strongly Undervalued range.

8.01

EV/EBIT

Prudential Financial Inc. (PRU) has a current EV/EBIT of 8.01. The 5-year average EV/EBIT is 8.10. The thresholds are as follows: Strongly Undervalued below 5.53, Undervalued between 5.53 and 6.82, Fairly Valued between 9.39 and 6.82, Overvalued between 9.39 and 10.67, and Strongly Overvalued above 10.67. The current Forward EV/EBIT of 8.01 falls within the Historic Trend Line -Fairly Valued range.

0.66

Prudential Financial Inc. (PRU) has a current PS of 0.66. The 5-year average PS is 0.68. The thresholds are as follows: Strongly Undervalued below 0.50, Undervalued between 0.50 and 0.59, Fairly Valued between 0.76 and 0.59, Overvalued between 0.76 and 0.85, and Strongly Overvalued above 0.85. The current Forward PS of 0.66 falls within the Historic Trend Line -Fairly Valued range.

4.02

P/OCF

Prudential Financial Inc. (PRU) has a current P/OCF of 4.02. The 5-year average P/OCF is 3.96. The thresholds are as follows: Strongly Undervalued below 0.94, Undervalued between 0.94 and 2.45, Fairly Valued between 5.46 and 2.45, Overvalued between 5.46 and 6.97, and Strongly Overvalued above 6.97. The current Forward P/OCF of 4.02 falls within the Historic Trend Line -Fairly Valued range.

12.57

P/FCF

Prudential Financial Inc. (PRU) has a current P/FCF of 12.57. The 5-year average P/FCF is 6.33. The thresholds are as follows: Strongly Undervalued below -5.52, Undervalued between -5.52 and 0.41, Fairly Valued between 12.26 and 0.41, Overvalued between 12.26 and 18.19, and Strongly Overvalued above 18.19. The current Forward P/FCF of 12.57 falls within the Overvalued range.

Prudential Financial Inc (PRU) has a current Price-to-Book (P/B) ratio of 1.25. Compared to its 3-year average P/B ratio of 1.40 , the current P/B ratio is approximately -11.05% higher. Relative to its 5-year average P/B ratio of 1.10, the current P/B ratio is about 13.56% higher. Prudential Financial Inc (PRU) has a Forward Free Cash Flow (FCF) yield of approximately 2.10%. Compared to its 3-year average FCF yield of 18.34%, the current FCF yield is approximately -88.56% lower. Relative to its 5-year average FCF yield of 20.26% , the current FCF yield is about -89.64% lower.

1.23

P/B

Median3y

1.40

Median5y

1.10

2.08

FCF Yield

Median3y

18.34

Median5y

20.26

Competitors Valuation Multiple

The average P/S ratio for PRU's competitors is 1.01, providing a benchmark for relative valuation. Prudential Financial Inc Corp (PRU) exhibits a P/S ratio of 0.66, which is -34.04% above the industry average. Given its robust revenue growth of -42.70%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

PRU.N

Prudential Financial Inc

Equitable Holdings Inc

Reinsurance Group of America Inc

Performance Decomposition

Market capitalization of PRU decreased by 17.21% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 14.47 to 16.35.

The secondary factor is the Margin Expansion, contributed 12.45%to the performance.

Overall, the performance of PRU in the past 1 year is driven by P/E Change. Which is more unsustainable.

-42.70%

23.51B → 13.47B

Revenue Growth

12.45%

4.90 → 5.51

Margin Expansion

13.04%

14.47 → 16.35

P/E Change

-17.21%