Prudential Financial, Inc. (PRU) fair value: what the stock is really worth
We calculate from audited financials what Prudential Financial, Inc. is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 17, 2026.
How to read this chart
60‑month range $65.54 – $125.13 · fair‑value band $63.84 – $106.41 · the $118.40 price screens above the $85.13 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 17, 2026.
Prudential Financial, Inc., together with its subsidiaries, provides financial products and services in the United States, Japan and internationally. It operates through PGIM, Retirement Strategies, Group Insurance, Individual Life, and International Businesses segments.
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Prudential Financial, Inc., together with its subsidiaries, provides financial products and services in the United States, Japan and internationally. It operates through PGIM, Retirement Strategies, Group Insurance, Individual Life, and International Businesses segments. The PGIM segment offers investment management services and solutions related to public fixed income, public equity, real estate debt and equity, private credit and other alternatives, and multi-asset class strategies to institutional and retail clients, as well as its insurance and retirement businesses. The Retirement Strategies segment provides a range of retirement investment, and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors; group annuities and other products; international reinsurance; investment only products; and FlexGuard suite, Fixed annuities, and variable annuities, as well as develops and distributes individual variable and fixed annuity products. The Group Insurance segment offers various group life, and long-term and short-term group disability, as well as group corporate-, bank-, and trust-owned life insurance; and supplemental health solutions including accident, critical illness, and hospital indemnity. The Individual Life segment develops and distributes variable life, universal life, and term life insurance products. The International Businesses segment develops and distributes life insurance, retirement products, investment products, and certain accident and health products. The company provides its products and services to individual and institutional customers through its proprietary and third-party distribution networks, financial professionals, and trusted partnerships. Prudential Financial, Inc. was founded in 1875 and is headquartered in Newark, New Jersey.
Stock analysis
Prudential Financial, Inc. (PRU) currently trades at $118.40, while our model-based Fair Value estimate is $85.13, implying the stock looks roughly 39.1% overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $130.75 per share, and 2 of the 6 models we run sit above the $118.40 price.
Bear case: the Asset-Based group reads lowest at $62.57, and 4 of the 6 models stay below the price. Evidence for this calculation is high.
Scenario range: $63.84 (bear) to $106.41 (bull), the price of $118.40 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 53/100 (solid quality), in the Financial Services sector.
Mixed Growth: Spin-off in 2025: revenue and profit before it include the divested business. Growth is measured afresh from 2025.
Prudential Financial, Inc. reported revenue of $60.8B in FY2025 versus $71.1B in FY2021, a compound −3.9%/yr. Reported net income was $3.6B in FY2025, compounding −20.3%/yr from FY2021.
Key figures
Market cap $41.4B · P/E ratio 12.2 · P/S ratio 0.72 · EPS (TTM) $9.71 · Dividend yield 4.6% · Net margin 5.9% · Return on equity 10.7% · Return on assets (EBIT) 0.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (low confidence).
What moves the price
The share trades near its 52-week high and 31% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −33% fair-value upside, at −28%, PRU screens cheaper than that median.
Fair Value models
Bear $63.84Fair Value $85.13Bull $106.41
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then ($3.08 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.Evidence ⓘEvidence = 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.
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.55/100
Spin-off in 2025: revenue and profit before it include the divested business. Growth is measured afresh from 2025.
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.
−0.2%
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.
+1.8%
Revenue growth 24 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%
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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.
−6.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year−10.9%
Dividend (yield on the price)4.6%
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.−9% vs 0%, slowing
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.−1% → 8%
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 %
Yearly growth needed for the next five years to justify today's price.
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.
+0.7%
Yearly sales growth analysts expect, extended to five years.
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.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
Compare Prudential Financial, Inc. with another stock
Price, fair value, quality and upside side by side.
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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.Insurance - Life · 95 stocks
Beats the industry median on 6/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score51 · Below median
Fair Value upside−30% · Below median
Profitability
Return on equity (TTM)11% · Above median
Return on assets0% · Bottom 25%
Net margin (TTM)5% · Below median
Operating margin (TTM)5% · Bottom 25%
Growth and dividend
Revenue growth15% · Above median
Dividend yield (TTM)4.6% · Above median
Balance sheet
Debt / equity0.66× · Highest 25%
Valuation Multiplesvs Insurance - Life median · lower = cheaper
P/E (TTM)12.2× · Cheaper than median
P/B1.27× · Cheaper than median
P/S (TTM)0.65× · Cheaper than median
P/FCF6.6× · Pricier than median
EV/EBITDA8.4× · Pricier than median
PEG1.29× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 16
FUTURE (revenue growth)77· sector 43
PAST (return on equity)43· sector 43
HEALTH (low debt)67· sector 84
DIVIDEND (yield)92· sector 56
VALUE 0: the price sits above our fair-value range.
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). "Prudential Financial, Inc. Fair Value". https://www.fairvalue-calculator.com/stock/PRU
Frequently asked questions
Is Prudential Financial, Inc. (PRU) overvalued or undervalued?
As of Sep 17, 2026, our model estimates a fair value of $85.13 versus a price of $118.40, about −28% upside (overvalued).
What is the fair value of PRU?
Our model-based fair value for Prudential Financial, Inc. is $85.13 (as of Sep 17, 2026), built from audited fundamentals. The current price: $118.40.
What is the quality score of PRU?
Prudential Financial, Inc. has a Quality Score of 53/100. 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 Prudential Financial, Inc. (PRU)?
Our model-based price target is the fair value of $85.13 (as of Sep 17, 2026) from 6 valuation models. Cautious scenario $63.84, optimistic scenario $106.41. It is a calculation from audited fundamentals, not an analyst target.
What is the Prudential Financial, Inc. stock forecast for 2026?
Our models put fair value at $85.13, about −28% upside versus a price of $118.40 (overvalued). Cautious scenario $63.84, optimistic scenario $106.41. The calculation is refreshed regularly with new filings.
What is the revenue of Prudential Financial, Inc. (PRU)?
Prudential Financial, Inc. reported trailing-twelve-month revenue of about $63.3B (latest available figure, as of Sep 17, 2026).
Does Prudential Financial, Inc. pay a dividend?
Prudential Financial, Inc. currently shows a dividend yield of about 4.60% relative to its recent price (as of Sep 17, 2026).
What growth is priced into Prudential Financial, Inc. (PRU)?
For today's price to be fair in a discounted-cash-flow model, Prudential Financial, 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 +1.3 % per year. As of Sep 17, 2026.
What discount rate (WACC) does the fair value of PRU use?
Our models discount Prudential Financial, Inc. at 8.9 %: a base by market capitalisation (large), damped by beta 0.84, 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 Prudential Financial, 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 Prudential Financial, Inc. (PRU) delivered so far?
Over the past 5 years revenue at Prudential Financial, Inc. grew +1.3 % 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 Prudential Financial, Inc. (PRU) growing?
The median revenue growth in the sector is +8.1 % a year. That is the yardstick for the growth priced into Prudential Financial, 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 Prudential Financial, Inc. (PRU)?
The free-cash-flow yield on the price is 15.14 %: that much free cash flow Prudential Financial, 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 Prudential Financial, Inc. (PRU)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Prudential Financial, Inc. it is $85.13 per share (as of Sep 17, 2026), against a price of $118.40. It is the blended result of 6 valuation models (cash flow, earnings, asset, dividend).
Is Prudential Financial, Inc. stock overvalued or undervalued in 2026?
As of Sep 17, 2026, PRU trades above its calculated fair value: price $118.40, fair value $85.13, a gap of about −28% (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 PRU?
No. The price is what the market pays today ($118.40); the fair value is what the company's own numbers justify ($85.13). For Prudential Financial, Inc. the two are $33.27 per share apart. That gap is exactly why we show both numbers side by side.
How much is Prudential Financial, Inc. worth?
The market values Prudential Financial, Inc. at about $41.4B (market capitalisation, as of Sep 17, 2026). Per share that is $118.40; our models calculate a fair value of $85.13 per share.
What do the bullish and bearish scenarios say about PRU?
Our models span a range for Prudential Financial, Inc.: cautious scenario $63.84, base $85.13, optimistic $106.41 per share (as of Sep 17, 2026, price $118.40). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of PRU?
Prudential Financial, Inc. trades at a price-to-earnings ratio of 12.2 (as of Sep 17, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $85.13 is built from several models across several years. Other multiples: PEG 1.3, P/B 1.3, P/S 0.7, EV/EBITDA 8.4.
What is the PEG ratio of PRU?
The PEG ratio of Prudential Financial, Inc. is 1.29 (P/E divided by earnings growth, as of Sep 17, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Prudential Financial, Inc. (PRU)?
Balance-sheet figures for Prudential Financial, Inc. (as of Sep 17, 2026): return on equity 10.7%, debt of 0.66 per unit of equity. They feed the Quality Score of 53/100, which measures business quality independently of the share price.
How far is PRU from its 52-week high?
Prudential Financial, Inc. trades at $118.40, about 2% below its 52-week high of $116.55 and 31% above the low of $90.64 (as of Sep 17, 2026). Distance from the high says nothing about value: that is what the fair value of $85.13 is for.
Which stocks are comparable to Prudential Financial, Inc.?
From the same area (Financial Services) we also value China Life Insurance Company, Ping An Insurance (Group) Company, AIA Group, Manulife Financial Corporation, 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 Prudential Financial, Inc. stock attractive at the current price?
The data as of Sep 17, 2026: price $118.40, calculated fair value $85.13 (−28%), Quality Score 53/100, 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 PRU calculated?
We run Prudential Financial, 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 $85.13, 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 16.1 % above its aggregate fair value. Prudential Financial, 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 Prudential Financial, Inc. (PRU)?
The closing price on Sep 18, 2026 was $118.40. Our model-based fair value is $85.13, about −28% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Prudential Financial, Inc. right now?
The price sits above even our optimistic bull case ($106.41). The favourable scenario is already priced in. Solid but not exceptional quality (53/100) 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 Prudential Financial, Inc. (PRU) come from?
Earnings per share at Prudential Financial, Inc. grew −0.3 % a year from 2014 to 2025. Broken into its drivers: revenue per share +3.6 %, EBIT margin −4.4 %, tax rate +0.7 %, residual (interest, one-offs) +0.0 %. 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 Prudential Financial, Inc.
How large is the market capitalisation of Prudential Financial, Inc. (PRU)?
The market capitalisation of Prudential Financial, Inc. is $41.4B. 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 Prudential Financial, Inc. (PRU)?
The price-to-sales ratio of Prudential Financial, Inc. is 0.72 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Prudential Financial, Inc. (PRU)?
Earnings per share at Prudential Financial, Inc. are $9.71 (price ÷ EPS = P/E 12.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Prudential Financial, Inc. (PRU)?
The dividend yield of Prudential Financial, Inc. is 4.6% (payout 56.1%). 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 Prudential Financial, Inc. (PRU)?
The net margin of Prudential Financial, Inc. is 5.9% (fiscal year 2025). 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 Prudential Financial, Inc. (PRU)?
The return on equity (ROE) of Prudential Financial, Inc. is 10.7% (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 Prudential Financial, Inc. (PRU)?
On an EBIT basis the return on assets of Prudential Financial, Inc. is 0.5% (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 Prudential Financial, Inc. (PRU)?
The operating margin of Prudential Financial, Inc. is 4.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Prudential Financial, Inc. (PRU)?
Revenue at Prudential Financial, Inc. is growing +15.3% versus a year earlier (3y avg +2.2%). 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 Prudential Financial, Inc. (PRU)?
Earnings per share at Prudential Financial, Inc. are growing −14.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Prudential Financial, Inc. (PRU) carry?
The net debt of Prudential Financial, Inc. is $3.2B (fiscal year 2025, ≈ 0.5 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Sep 17, 2026