Principal Financial Group Inc (PFG) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Principal Financial Group Inc stock $52.47, price $113, that is 53.5% below the price, quality 58 out of 100. Rating: strongly overvalued. Calculated from audited financials with 6 of our 26 valuation models and 37 quality factors, updated daily.
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Our calculation puts a fair price 53% below what the stock costs today.
Solidly profitable · 11.9% net margin (TTM)
2.9% dividend yield · Low payout
Positive coverage
Broad data
Revenue last quarter +25% vs. a year ago.
Quality 58/100
Mixed vs. peers(7/15)
Moderate moat59/100
Insiders sold $1.1M (6M)
Fair value $52.47 · Strongly overvalued (−53.5%)
Weak Growth(revenue 5y +1.2 %/yr in USD)
Risks from the AI analysis
🚩AI automation could commoditise retirement recordkeeping🚩Robo-advisors like Betterment could capture SMB retirement clients🚩Lawsuits over excessive fees in 401k products
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 5, 2026.
How to read this chart
60‑month range $51.72 – $118.51 · fair‑value band $39.35 – $65.58 · the $112.82 price screens above the $52.47 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 5, 2026.
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Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. The company operates through Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection segments.
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The Retirement and Income Solutions segment provides retirement, and related financial products and services.
This segment offers products and services for defined contribution plans, including 401(k) and 403(b) plans, defined benefit plans, nonqualified executive benefit plans, employee stock ownership plans, equity compensation, and pension risk transfer services; individual retirement accounts; investment only products; and mutual funds, individual variable annuities, registered index-linked annuities, and bank products, as well as trust and custody services.
The Principal Asset Management segment provides equity, fixed income, real estate, and other alternative investments, as well as fund offerings.
This segment also offers pension accumulation products and services, mutual funds, asset management, income annuities, and life insurance accumulation products, as well as voluntary savings plans.
The Benefits and Protection segment provides specialty benefits, such as specialty benefits group dental and vision insurance, group life and other insurance, and group and individual disability insurance, as well as administers group dental, disability, and vision benefits; and individual life insurance products comprising universal, variable universal, indexed universal, and term life insurance products.
This segment serves insurance solutions for small and medium-sized businesses and their owners, as well as employees. The company was founded in 1879 and is based in Des Moines, Iowa.
Stock analysis
Principal Financial Group Inc (PFG) currently trades at $112.82, while our model-based Fair Value estimate is $52.47, 53% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Economic Profit group reads highest at a median of $54.82 per share, and 0 of the 6 models we run sit above the $112.82 price.
Bear case: the Asset-Based group reads lowest at $15.57, and 6 of the 6 models stay below the price. Data coverage for this calculation is high.
Scenario range: $39.35 (bear) to $65.58 (bull), the price of $112.82 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 58/100 (solid quality), in the Financial Services sector.
Weak Growth: Revenue growth is weak: less than 2 % a year.
Principal Financial Group Inc reported revenue of $15.6B in FY2025 versus $14.4B in FY2021, a compound +2.0%/yr. Reported net income was $1.2B in FY2025, compounding −6.9%/yr from FY2021.
Key figures
Market cap $24.7B Large · P/E ratio 16.1 · P/S ratio 1.48 · EPS (TTM) $7.02 · Dividend yield 2.9% · Net margin 11.9% · Return on equity 16.1% · Return on assets (EBIT) 0.8%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 59 out of 100 (medium confidence).
What moves the price
The share trades about 5% below its 52-week high and 44% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −16% fair-value upside, at −53%, PFG screens richer than that median.
Fair Value models
Bear$39.35Fair Value $52.47Bull$65.58
Price $112.82 · Downside -53.5%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($3.20 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, one officer or director sold shares worth $1.1M and none bought.
SaleWee Yee CheongPresident - Asia & Middle East4× since Nov 12, 2025: 27,632 shares, avg. $100.83$2.8MMay 21, 2026
SaleGeorge DjurasovicInterim General Counsel2,572 shares at $100.83$259,333Apr 30, 2026
BuyClaudio MuruzabalDirector5 shares at $97.09$485Feb 9, 2026
SaleDeanna D Strable-SoethoutPresident and CEO4× since Jan 8, 2026: 24,965 shares, avg. $94.23$2.4MJan 30, 202610b5-1 plan
Plus 57 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is weak: less than 2 % a year.
Revenue growth 1 year
−3.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−3.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+1.2%
Start year 2020 (pandemic). Over 10 years: +2.7% a year
Revenue growth 25 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.6%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
0.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year−2.9%
Dividend (yield on the price)2.9%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.0.8% vs 2.4%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.12% → 9%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Little optimism in the price
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
less than -40 %
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+7.5%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +5.0% a year for the forecasts.
News mood ⓘNews mood, the average tone of recent news (96 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Steady inflows into retirement and asset management form the main strength, while thin public signals and neutral scores leave overall business quality hard to confirm.
Main risk: Generative AI and automation systems could reduce the cost of administering retirement plans and enable lower-fee robo-advisors, squeezing margins in Principal's core SMB retirement and asset management segments.
Bull case: Principal could leverage its AI investments and integrated retirement platform to deliver more efficient personalised services and retain or gain clients despite automation pressures.
Bear case: If AI-driven fee compression and digital rivals prevail, Principal's retirement and asset management inflows could slow markedly as clients shift to lower-cost automated alternatives.
Principal has built steady inflows into its retirement and asset management offerings over recent years. Analysts now flag a likely slowdown in operating income growth from low double digits to mid single digits over the next twelve months. Will the core business prove more resilient than that shift implies, or does it mark the start of a longer period of muted expansion?
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Asset Management · 593 stocks
Beats the industry median on 6/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score58 · Below median
Fair Value upside−53.5% · Bottom 25%
Profitability
Return on equity (12 months)16.1% · Above median
Return on assets0.4% · Bottom 25%
Net margin (12 months)11.9% · Below median
Operating margin (12 months)19.4% · Below median
Growth and dividend
Revenue growth (quarter YoY)25.4% · Above median
Dividend yield (12 months)2.9% · Below median
Valuation Multiplesvs Asset Management median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Principal Financial Group Inc Fair Value". https://www.fairvalue-calculator.com/stock/PFG
Frequently asked questions
Is Principal Financial Group Inc (PFG) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of $52.47 versus a price of $112.82, about 53% lower (overvalued).
What is the fair value of PFG?
Our model-based fair value for Principal Financial Group Inc is $52.47 (as of Nov 5, 2026), built from audited fundamentals. The current price: $112.82.
What is the quality score of PFG?
Principal Financial Group Inc has a Quality Score of 58/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Principal Financial Group Inc (PFG)?
Our model-based price target is the fair value of $52.47 (as of Nov 5, 2026) from 6 valuation models. Cautious scenario $39.35, optimistic scenario $65.58. It is a calculation from audited fundamentals, not an analyst target.
What is the Principal Financial Group Inc stock forecast for 2026?
Our models put fair value at $52.47, about 53% lower versus a price of $112.82 (overvalued). Cautious scenario $39.35, optimistic scenario $65.58. The calculation is refreshed regularly with new filings.
What is the revenue of Principal Financial Group Inc (PFG)?
Principal Financial Group Inc reported trailing-twelve-month revenue of about $16.6B (latest available figure, as of Nov 5, 2026).
Does Principal Financial Group Inc pay a dividend?
Principal Financial Group Inc currently shows a dividend yield of 2.88% relative to its recent price (as of Nov 5, 2026).
What growth is priced into Principal Financial Group Inc (PFG)?
For today's price to be fair in a discounted-cash-flow model, Principal Financial Group Inc would have to grow free cash flow by less than minus 40 % per year for five years (discount rate 8.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +1.2 % per year. As of Nov 5, 2026.
What discount rate (WACC) does the fair value of PFG use?
Our models discount Principal Financial Group Inc at 8.9 %: a base by market capitalisation (large), damped by beta 0.87, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Principal Financial Group Inc that is less than minus 40 % per year a year over ten years, using the same discount rate (8.9 %) and the same formula as our fair value.
How much growth has Principal Financial Group Inc (PFG) delivered so far?
Over the past 5 years revenue at Principal Financial Group Inc grew +1.2 % a year. The price currently implies less than minus 40 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Principal Financial Group Inc (PFG) growing?
The median revenue growth in the sector is +9.4 % a year. That is the yardstick for the growth priced into Principal Financial Group Inc (less than minus 40 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Principal Financial Group Inc (PFG)?
The free-cash-flow yield on the price is 17.99 %: that much free cash flow Principal Financial Group Inc produces per unit of market value. When it exceeds the discount rate of our models (8.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Principal Financial Group Inc (PFG)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Principal Financial Group Inc it is $52.47 per share (as of Nov 5, 2026), against a price of $112.82. It is the blended result of 6 valuation models (cash flow, earnings, asset, dividend).
Is Principal Financial Group Inc stock overvalued or undervalued in 2026?
As of Nov 5, 2026, PFG trades above its calculated fair value: price $112.82, fair value $52.47, a gap of about −53% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of PFG?
No. The price is what the market pays today ($112.82); the fair value is what the company's own numbers justify ($52.47). For Principal Financial Group Inc the two are $60.35 per share apart. That gap is exactly why we show both numbers side by side.
How much is Principal Financial Group Inc worth?
The market values Principal Financial Group Inc at about $24.7B (market capitalisation, as of Nov 5, 2026). Per share that is $112.82; our models calculate a fair value of $52.47 per share.
What do the bullish and bearish scenarios say about PFG?
Our models span a range for Principal Financial Group Inc: cautious scenario $39.35, base $52.47, optimistic $65.58 per share (as of Nov 5, 2026, price $112.82). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of PFG?
Principal Financial Group Inc trades at a price-to-earnings ratio of 16.1 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $52.47 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 20.3 (reported for FY2025: 21.5). Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 7 of the years ex one-offs: 7.2. Other multiples: PEG 1.1, P/B 2.1, P/S 1.5, EV/EBITDA 7.2.
What is the PEG ratio of PFG?
The PEG ratio of Principal Financial Group Inc is 1.06 (P/E divided by earnings growth, as of Nov 5, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Principal Financial Group Inc (PFG)?
Balance-sheet figures for Principal Financial Group Inc (as of Nov 5, 2026): return on equity 16.1%. They feed the Quality Score of 58/100, which measures business quality independently of the share price.
How far is PFG from its 52-week high?
Principal Financial Group Inc trades at $112.82, about 5% below its 52-week high of $118.51 and 44% above the low of $78.31 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $52.47 is for.
Which stocks are comparable to Principal Financial Group Inc?
From the same area (Financial Services) we also value Blackstone Inc, Brookfield Corporation, KKR & Co, Apollo Global Management, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Principal Financial Group Inc stock attractive at the current price?
The data as of Nov 5, 2026: price $112.82, calculated fair value $52.47 (−53%), Quality Score 58/100, from 6 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of PFG calculated?
We run Principal Financial Group Inc through 6 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $52.47, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Principal Financial Group Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Principal Financial Group Inc (PFG)?
The closing price on Nov 5, 2026 was $112.82. Our model-based fair value is $52.47, about 53% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Principal Financial Group Inc right now?
The price sits above even our optimistic bull case ($65.58). The favourable scenario is already priced in. Solid but not exceptional quality (58/100) and above fair value, neither a clear bargain nor a standout compounder. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Principal Financial Group Inc (PFG) come from?
Earnings per share at Principal Financial Group Inc grew +1.7 % a year from 2014 to 2025. Broken into its drivers: revenue per share +5.8 %, EBIT margin −4.1 %, tax rate +0.4 %, residual (interest, one-offs) −0.2 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Principal Financial Group Inc
How large is the market capitalisation of Principal Financial Group Inc (PFG)?
The market capitalisation of Principal Financial Group Inc is $24.7B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Principal Financial Group Inc (PFG)?
The price-to-sales ratio of Principal Financial Group Inc is 1.48 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Principal Financial Group Inc (PFG)?
Earnings per share at Principal Financial Group Inc are $7.02 (price ÷ EPS = P/E 16.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Principal Financial Group Inc (PFG)?
The dividend yield of Principal Financial Group Inc is 2.9% (payout 43.7%, on adjusted earnings, reported 46.3%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Principal Financial Group Inc (PFG)?
The net margin of Principal Financial Group Inc is 11.9% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Principal Financial Group Inc (PFG)?
The return on equity (ROE) of Principal Financial Group Inc is 16.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Principal Financial Group Inc (PFG)?
On an EBIT basis the return on assets of Principal Financial Group Inc is 0.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Principal Financial Group Inc (PFG)?
The operating margin of Principal Financial Group Inc is 19.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Principal Financial Group Inc (PFG)?
Revenue at Principal Financial Group Inc is growing +25.4% versus a year earlier (3y avg −3.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Principal Financial Group Inc (PFG)?
Earnings per share at Principal Financial Group Inc are growing +206% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Principal Financial Group Inc (PFG) hold?
Principal Financial Group Inc holds more cash than debt, $477M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Broad data
Nov 5, 2026