Prudential Financial, Inc. (PRU) 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

+26.0%

$149.32

vs $118.54 price

Levered DCF

$263.42

After debt service

Piotroski score

9 / 9

Strong

Altman Z-score

0.48

Distress zone

Rating

B+

Overall 3 / 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	11.05×	15.72×	15.47×	-22.15×	4.8×	-78.07×	9.16×	8.46×
P/B	1.22×	1.52×	1.37×	2.28×	0.68×	0.46×	0.6×	0.7×
P/S	0.65×	0.6×	0.7×	0.65×	0.59×	0.54×	0.59×	0.54×
EV / EBITDA	8.93×	14.54×	15.16×	-26.72×	5.33×	284.68×	7.84×	7.91×
Gross margin	31.1%	24.8%	32.4%	20.9%	39.7%	26.7%	32.0%	28.8%
Operating margin	7.6%	4.5%	5.7%	-3.3%	15.2%	-0.6%	7.8%	7.7%
Net margin	5.9%	3.9%	4.6%	-2.9%	12.5%	-0.7%	6.5%	6.5%
Current ratio	0.61×	1.87×	1.8×	1.74×	1.56×	0×	0.51×	0.01×
Debt / equity	0.71×	1.02×	0.97×	1.7×	0.48×	0.31×	0.35×	0.43×
Interest coverage	2.21×	0×	0×	0×	0×	0×	0×	0×
Dividend yield	4.9%	4.5%	4.9%	4.9%	4.3%	5.7%	4.3%	4.5%
Payout ratio	53.9%	69.3%	74.2%	-110.3%	20.5%	-472.2%	39.2%	37.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.0%	9.8%	8.9%	-10.1%	14.3%	-0.6%	6.6%	8.4%
Return on invested capital	0.7%	0.5%	0.5%	-0.3%	1.3%	-17.0%	33.6%	8.3%
Return on assets	0.5%	0.4%	0.3%	-0.2%	0.9%	-0.0%	0.5%	0.5%
Free cash flow yield	15.9%	20.1%	17.1%	13.9%	25.2%	26.8%	41.7%	63.6%
Earnings yield	9.1%	6.4%	6.5%	-4.4%	21.2%	-1.2%	11.0%	12.0%
Enterprise value	$42.7B	$52.2B	$45.5B	$47.4B	$58.8B	$38.1B	$43.5B	$39.5B
Net debt / EBITDA	0.68×	2.75×	2.5×	-5.86×	1.53×	54.08×	1×	1.09×
Cash conversion cycle (days)	124	212	206	19	15	0	0	0