PRU Valuation

Prudential Financial Inc

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106.290

+1.09(1.036%)1D

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 7.23 is considered Undervalued compared with the five-year average of 8.32. The fair price of Prudential Financial Inc (PRU) is between 106.92 to 139.35 according to relative valuation methord. Compared to the current price of 106.29 USD , Prudential Financial Inc is Undervalued By 0.59%.

Relative Value

Fair Zone

106.92-139.35

Current Price：106.29

0.59%

Undervalued

7.23

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.

7.81

EV/EBIT

Prudential Financial Inc. (PRU) has a current EV/EBIT of 7.81. The 5-year average EV/EBIT is 8.16. The thresholds are as follows: Strongly Undervalued below 5.63, Undervalued between 5.63 and 6.90, Fairly Valued between 9.42 and 6.90, Overvalued between 9.42 and 10.68, and Strongly Overvalued above 10.68. The current Forward EV/EBIT of 7.81 falls within the Historic Trend Line -Fairly Valued range.

106.29

Prudential Financial Inc. (PRU) has a current PS of 106.29. The 5-year average PS is 1.35. The thresholds are as follows: Strongly Undervalued below -15.19, Undervalued between -15.19 and -6.92, Fairly Valued between 9.62 and -6.92, Overvalued between 9.62 and 17.89, and Strongly Overvalued above 17.89. The current Forward PS of 106.29 falls within the Strongly Overvalued range.

2.26

P/OCF

Prudential Financial Inc. (PRU) has a current P/OCF of 2.26. The 5-year average P/OCF is 4.18. The thresholds are as follows: Strongly Undervalued below 1.82, Undervalued between 1.82 and 3.00, Fairly Valued between 5.36 and 3.00, Overvalued between 5.36 and 6.54, and Strongly Overvalued above 6.54. The current Forward P/OCF of 2.26 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 6.93. The thresholds are as follows: Strongly Undervalued below -4.85, Undervalued between -4.85 and 1.04, Fairly Valued between 12.82 and 1.04, Overvalued between 12.82 and 18.71, and Strongly Overvalued above 18.71. 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 1.16. Compared to its 3-year average P/B ratio of 1.36 , the current P/B ratio is approximately -14.59% higher. Relative to its 5-year average P/B ratio of 1.14, the current P/B ratio is about 1.45% higher. Prudential Financial Inc (PRU) has a Forward Free Cash Flow (FCF) yield of approximately 14.18%. Compared to its 3-year average FCF yield of 16.16%, the current FCF yield is approximately -12.24% lower. Relative to its 5-year average FCF yield of 15.77% , the current FCF yield is about -10.08% lower.

1.16

P/B

Median3y

1.36

Median5y

1.14

14.18

FCF Yield

Median3y

16.16

Median5y

15.77

Competitors Valuation Multiple

The average P/S ratio for PRU's competitors is 116.18, providing a benchmark for relative valuation. Prudential Financial Inc Corp (PRU) exhibits a P/S ratio of 106.29, which is -8.51% above the industry average. Given its robust revenue growth of -8.22%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

PRU.N

Prudential Financial Inc

Corebridge Financial Inc

Equitable Holdings Inc

Reinsurance Group of America Inc

Performance Decomposition

Market capitalization of PRU decreased by 17.87% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 2.31 to 8.29.

The secondary factor is the Revenue Growth, contributed -8.22%to the performance.

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

-8.22%

19.49B → 17.89B

Revenue Growth

258.87%

2.31 → 8.29

Margin Expansion

-268.52%

-8.67 → 14.62

P/E Change

-17.87%