PRU PE Ratio & Valuation,Is PRU Overvalued

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 7.96 is considered Fairly compared with the five-year average of 8.32. The fair price of Prudential Financial Inc (PRU) is between 108.40 to 140.66 according to relative valuation methord.

Relative Value

Fair Zone

108.40-140.66

Current Price：116.96

Fair

7.96

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.

8.20

EV/EBIT

Prudential Financial Inc. (PRU) has a current EV/EBIT of 8.20. 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 8.20 falls within the Historic Trend Line -Fairly Valued range.

0.71

Prudential Financial Inc. (PRU) has a current PS of 0.71. 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 0.71 falls within the Historic Trend Line -Fairly Valued range.

2.55

P/OCF

Prudential Financial Inc. (PRU) has a current P/OCF of 2.55. The 5-year average P/OCF is 4.20. The thresholds are as follows: Strongly Undervalued below 2.08, Undervalued between 2.08 and 3.14, Fairly Valued between 5.26 and 3.14, Overvalued between 5.26 and 6.31, and Strongly Overvalued above 6.31. The current Forward P/OCF of 2.55 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 6.78. The thresholds are as follows: Strongly Undervalued below -5.04, Undervalued between -5.04 and 0.87, Fairly Valued between 12.69 and 0.87, Overvalued between 12.69 and 18.60, and Strongly Overvalued above 18.60. 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 1.28. Compared to its 3-year average P/B ratio of 1.32 , the current P/B ratio is approximately -3.03% higher. Relative to its 5-year average P/B ratio of 1.16, the current P/B ratio is about 10.33% higher. Prudential Financial Inc (PRU) has a Forward Free Cash Flow (FCF) yield of approximately 12.89%. Compared to its 3-year average FCF yield of 16.33%, the current FCF yield is approximately -21.10% lower. Relative to its 5-year average FCF yield of 15.24% , the current FCF yield is about -15.43% lower.

1.28

P/B

Median3y

1.32

Median5y

1.16

12.89

FCF Yield

Median3y

16.33

Median5y

15.24

Competitors Valuation Multiple

The average P/S ratio for PRU's competitors is 1.04, providing a benchmark for relative valuation. Prudential Financial Inc Corp (PRU) exhibits a P/S ratio of 0.71, which is -31.19% above the industry average. Given its robust revenue growth of -9.04%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of PRU decreased by 0.12% 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.

-9.04%

19.32B → 17.57B

Revenue Growth

262.23%

2.33 → 8.44

Margin Expansion

-253.31%

-10.50 → 16.09

P/E Change

-0.12%

117.10 → 116.96

Mkt Cap Growth

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Frequently Asked Questions

Is Prudential Financial Inc (PRU) currently overvalued or undervalued?

What is Prudential Financial Inc (PRU) fair value?

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. The fair price of Prudential Financial Inc (PRU) is between 108.40 to 140.66 according to relative valuation methord.

How does PRU's valuation metrics compare to the industry average?

What is the current P/B ratio for Prudential Financial Inc (PRU) as of Dec 15 2025?

As of Dec 15 2025, Prudential Financial Inc (PRU) has a P/B ratio of 1.28. This indicates that the market values PRU at 1.28 times its book value.

What is the current FCF Yield for Prudential Financial Inc (PRU) as of Dec 15 2025?

As of Dec 15 2025, Prudential Financial Inc (PRU) has a FCF Yield of 12.89%. This means that for every dollar of Prudential Financial Inc’s market capitalization, the company generates 12.89 cents in free cash flow.

What is the current Forward P/E ratio for Prudential Financial Inc (PRU) as of Dec 15 2025?

As of Dec 15 2025, Prudential Financial Inc (PRU) has a Forward P/E ratio of 7.96. This means the market is willing to pay $7.96 for every dollar of Prudential Financial Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Prudential Financial Inc (PRU) as of Dec 15 2025?

As of Dec 15 2025, Prudential Financial Inc (PRU) has a Forward P/S ratio of 0.71. This means the market is valuing PRU at $0.71 for every dollar of expected revenue over the next 12 months.

PRU Valuation