Principal Financial Group, Inc. (PFG) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+91.4%

$215.90

vs $112.81 price

Levered DCF

$302.86

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

0.15

Distress zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	16.58×	11.43×	30.49×	4.43×	12.32×	9.77×	11×	8.16×
P/B	1.68×	1.58×	1.7×	2.11×	1.21×	0.82×	1.05×	1.11×
P/S	1.27×	1.09×	1.36×	1.2×	1.35×	0.92×	0.94×	0.89×
EV / EBITDA	11.64×	8.11×	17.68×	3.23×	9.98×	7.78×	8.66×	6.51×
Gross margin	45.2%	45.6%	43.2%	63.0%	49.0%	43.8%	38.9%	42.5%
Operating margin	9.1%	11.7%	5.4%	34.1%	13.2%	11.5%	10.4%	12.5%
Net margin	7.6%	9.7%	4.6%	27.1%	11.0%	9.5%	8.6%	10.9%
Current ratio	3.21×	5.24×	4.82×	0.53×	34.77×	983.28×	796.17×	1,503.48×
Debt / equity	0.33×	0.37×	0.37×	0.41×	0.29×	0.26×	0.26×	0.29×
Interest coverage	643.64×	726.77×	388.84×	4,989.17×	1,910.9×	1,693.5×	0×	0×
Dividend yield	3.4%	3.8%	3.4%	3.0%	3.4%	4.5%	4.0%	4.7%
Payout ratio	57.7%	41.9%	100.4%	13.5%	41.4%	44.0%	43.5%	38.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	10.0%	14.2%	5.7%	47.6%	9.8%	8.4%	9.5%	13.6%
Return on invested capital	0.4%	0.5%	0.2%	-88.8%	0.5%	0.8%	1.0%	1.2%
Return on assets	0.3%	0.5%	0.2%	1.6%	0.5%	0.4%	0.5%	0.6%
Free cash flow yield	22.3%	25.9%	19.8%	14.5%	15.9%	26.6%	35.0%	40.1%
Earnings yield	6.0%	9.0%	3.4%	22.6%	8.1%	10.2%	9.1%	12.3%
Enterprise value	$19.4B	$17.4B	$17.9B	$20.3B	$21.8B	$15.1B	$16.6B	$12.9B
Net debt / EBITDA	-0.29×	-0.05×	-0.71×	-0.12×	1.08×	0.78×	0.68×	0.16×
Cash conversion cycle (days)	555	526	657	-5,942	64	43	-230	-319