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Prudential Financial Inc (PRS) stock analysis

PRSNYSELife InsuranceFiscal year ends December 31Also trades as PFH, PRH, PRU
Financials through Q2 FY2026, quarter ended Jun 30, 2026Last filing: 10-Q on Aug 5, 2026Score 13/304% below fair value
$19.30−0.05 (-0.26%)

Close on Nov 2, 2026Market cap $40.81BP/E 10.7Yield 4.56%

StockData Score

Prices as of Oct 30, 2026How the score works

Value4Growth1Performance2Health1Dividend5

Mixed13 of 30 checks passed

Prudential Financial passes 13 of the 30 checks behind our score; 9 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
4/6
Growth
1/6
Past performance
2/6
Financial health
1/6
Dividend
5/6

What stands out

  • Trading below fair value

    The share price of $116.45 is below our fair value estimate of $121.85.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 53.2% of total debt.

  • P/E below its 5-year median

    Prudential Financial's P/E of 10.5 is below its own 5-year median of 15.6.

  • P/E below the industry

    Prudential Financial's P/E of 10.5 is below the Life Insurance median of 10.6.

What to watch

  • Margin of safety under 20%

    The price is 4.4% below fair value, less than the 20% cushion we look for.

  • Return on equity under 15%

    Return on equity was 12.6% over the last twelve months and averaged 8.1% over five years; we look for 15% on both.

  • High debt

    Debt is 65.3% of shareholders' equity, above the 40% we consider low.

  • Revenue growing under 10% a year

    Revenue grew 2.2% a year over the last three fiscal years, short of the 10% we look for.

Valuation4/6

  • P/E below its 5-year median

    Prudential Financial's P/E of 10.5 is below its own 5-year median of 15.6.

  • P/E below the industry

    Prudential Financial's P/E of 10.5 is below the Life Insurance median of 10.6.

  • P/S below the industry

    Prudential Financial's price-to-sales of 0.62 is below the Life Insurance median of 0.64.

  • P/B above the industry

    Prudential Financial's price-to-book of 1.27 is above the Life Insurance median of 0.92.

  • Trading below fair value

    The share price of $116.45 is below our fair value estimate of $121.85.

  • Margin of safety under 20%

    The price is 4.4% below fair value, less than the 20% cushion we look for.

Growth1/6

  • Revenue growing under 10% a year

    Revenue grew 2.2% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing faster than the industry

    Revenue grew 9.4% over the last twelve months; the Life Insurance median is 8.0%.

  • Company guidance

    No outlook found in earnings releases from the last twelve months.

  • Gross margin trend

    Banks and insurers do not report gross profit.

Past performance2/6

  • Return on equity under 15%

    Return on equity was 12.6% over the last twelve months and averaged 8.1% over five years; we look for 15% on both.

  • Return on assets under 1%

    Return on assets was 0.5%; for a bank or insurer, 1% or more is considered good.

  • Return on equity above the industry

    Prudential Financial's return on equity of 12.6% is above the Life Insurance median of 11.7%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin above its 5-year average

    Net margin was 6.0% over the last twelve months, against a 5-year average of 4.8%.

  • Net margin below the industry

    Prudential Financial's net margin of 6.0% is below the Life Insurance median of 6.5%.

Financial health1/6

  • High debt

    Debt is 65.3% of shareholders' equity, above the 40% we consider low.

  • Debt rising against equity

    Debt to equity rose from 30.6% five years ago to 65.3%.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 53.2% of total debt.

  • Interest coverage

    Interest expense is not reported separately.

  • Short-term liquidity

    Insurers do not split assets into current and non-current.

  • Bankruptcy risk (Altman Z)

    The Altman model does not apply to insurers.

Dividend5/6

  • Pays a dividend

    Prudential Financial paid dividends worth 4.8% of the share price over the last twelve months.

  • Yield above Treasuries

    The 4.8% yield is above the 4.4% on a 1-year Treasury.

  • Yield in the top quarter

    The top quarter of US dividend payers yield 4.0% or more; Prudential Financial yields 4.8%.

  • Dividend not cut

    The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

  • Covered by earnings

    Dividends take 49.7% of net income.

  • Cash-flow cover

    Needs dividends paid and free cash flow.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$121.85

The share price is 4% below this estimate.

20%+ below
Near fair value
20%+ above
$116.45Price
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/E13.1×15.6×10.6×$144.4950%
P/B1.1×1.2×0.9×$99.2050%
Fair value$121.85100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Own 5-year median 15.6
  • Life Insurance median 10.6

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$185.64M
Value traded per 1% price move
$203.65M

Downside

Low risk

Typical loss in a bad month
12.3%
Volatility (annualized)
23%
Sharpe ratio, 1 year
0.47
Beta to the S&P 500 (5Y)
0.96

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Net margin

5.9%+6.5 pts over 5 years