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 Fair zone, suggesting that its current forward PE ratio of 7.44 is considered Fairly compared with the five-year average of 8.32. The fair price of Prudential Financial Inc (PRU) is between 108.05 to 140.64 according to relative valuation methord.
Relative Value
Fair Zone
108.05-140.64
Current Price：110.25
Fair
7.44
PE
1Y
3Y
5Y
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.
7.86
EV/EBIT
Prudential Financial Inc. (PRU) has a current EV/EBIT of 7.86. The 5-year average EV/EBIT is 8.15. The thresholds are as follows: Strongly Undervalued below 5.64, Undervalued between 5.64 and 6.90, Fairly Valued between 9.41 and 6.90, Overvalued between 9.41 and 10.66, and Strongly Overvalued above 10.66. The current Forward EV/EBIT of 7.86 falls within the Historic Trend Line -Fairly Valued range.
0.66
PS
Prudential Financial Inc. (PRU) has a current PS of 0.66. The 5-year average PS is 0.69. The thresholds are as follows: Strongly Undervalued below 0.55, Undervalued between 0.55 and 0.62, Fairly Valued between 0.76 and 0.62, Overvalued between 0.76 and 0.83, and Strongly Overvalued above 0.83. The current Forward PS of 0.66 falls within the Historic Trend Line -Fairly Valued range.
2.35
P/OCF
Prudential Financial Inc. (PRU) has a current P/OCF of 2.35. The 5-year average P/OCF is 4.19. The thresholds are as follows: Strongly Undervalued below 2.01, Undervalued between 2.01 and 3.10, Fairly Valued between 5.28 and 3.10, Overvalued between 5.28 and 6.37, and Strongly Overvalued above 6.37. The current Forward P/OCF of 2.35 falls within the Undervalued range.
0.00
P/FCF
Prudential Financial Inc. (PRU) has a current P/FCF of 0.00. The 5-year average P/FCF is 6.79. The thresholds are as follows: Strongly Undervalued below -5.03, Undervalued between -5.03 and 0.88, Fairly Valued between 12.70 and 0.88, Overvalued between 12.70 and 18.61, and Strongly Overvalued above 18.61. The current Forward P/FCF of 0.00 falls within the Undervalued range.
Prudential Financial Inc (PRU) has a current Price-to-Book (P/B) ratio of 1.19. Compared to its 3-year average P/B ratio of 1.33 , the current P/B ratio is approximately -10.06% higher. Relative to its 5-year average P/B ratio of 1.15, the current P/B ratio is about 3.69% higher. Prudential Financial Inc (PRU) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 16.46%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 15.47% , the current FCF yield is about -100.00% lower.
1.19
P/B
Median3y
1.33
Median5y
1.15
13.98
FCF Yield
Median3y
16.46
Median5y
15.47
Competitors Valuation Multiple
The average P/S ratio for PRU's competitors is , providing a benchmark for relative valuation. Prudential Financial Inc Corp (PRU) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -9.04%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of PRU decreased by 5.85% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 2.33 to 8.44.
The secondary factor is the Revenue Growth, contributed -9.04%to the performance.
Overall, the performance of PRU in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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