Prudential Financial Valuation
| PRU Stock | USD 108.70 1.35 1.26% |
At this time, the company appears to be overvalued. Prudential Financial holds a recent Real Value of $104.26 per share. The prevailing price of the company is $108.7. Our model determines the value of Prudential Financial from analyzing the company fundamentals such as Operating Margin of 0.24 %, shares outstanding of 359.38 M, and Return On Equity of 0.0813 as well as examining its technical indicators and probability of bankruptcy. In general, most investors support acquiring undervalued entities and selling overvalued entities since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Prudential Financial's valuation include:
Price Book 1.417 | Enterprise Value 40.5 B | Price Sales 0.7303 | Forward PE 8.0128 | Trailing PE 16.1276 |
Overvalued
Today
Please note that Prudential Financial's price fluctuation is very steady at this time. Calculation of the real value of Prudential Financial is based on 3 months time horizon. Increasing Prudential Financial's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Prudential Financial is useful when determining the fair value of the Prudential stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Prudential Financial. Since Prudential Financial is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Prudential Stock. However, Prudential Financial's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 108.7 | Real 104.26 | Target 99.43 | Hype 108.76 |
The real value of Prudential Stock, also known as its intrinsic value, is the underlying worth of Prudential Financial Company, which is reflected in its stock price. It is based on Prudential Financial's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Prudential Financial's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Prudential Financial's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Prudential Financial helps investors to forecast how Prudential stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Prudential Financial more accurately as focusing exclusively on Prudential Financial's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Prudential Financial's intrinsic value based on its ongoing forecasts of Prudential Financial's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Prudential Financial's closest peers. When choosing an evaluation method for Prudential Financial, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Prudential Financial Investments |
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Prudential Valuation Trend
Knowing Prudential Financial's actual value is paramount for traders to make sound investment determinations. Prudential Financial's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Prudential Financial's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Prudential Financial's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Prudential Market Cap
Prudential Financial is regarded fourth in market capitalization category among related companies. Market capitalization of Financials industry is at this time estimated at about 229.72 Billion. Prudential Financial retains roughly 39.06 Billion in market capitalization claiming about 17% of equities under Financials industry.Prudential Financial Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Prudential Financial's current stock value. Our valuation model uses many indicators to compare Prudential Financial value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Prudential Financial competition to find correlations between indicators driving Prudential Financial's intrinsic value. More Info.Prudential Financial is considered to be number one stock in price to earning category among related companies. It is regarded third in price to book category among related companies fabricating about 0.01 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Prudential Financial is roughly 95.05 . Price To Book Ratio is likely to drop to 1.17 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Prudential Financial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Prudential Financial's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Prudential Financial's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Prudential Financial's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Prudential Financial and how it compares across the competition.
About Prudential Financial Valuation
The stock valuation mechanism determines the current worth of Prudential Financial on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Prudential Financial. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Prudential Financial based exclusively on its fundamental and basic technical indicators. By analyzing Prudential Financial's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Prudential Financial's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Prudential Financial. We calculate exposure to Prudential Financial's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Prudential Financial's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 54.3 B | 48.6 B | |
| Pretax Profit Margin | 0.06 | 0.07 | |
| Operating Profit Margin | (0) | (0) | |
| Net Profit Margin | 0.05 | 0.04 | |
| Gross Profit Margin | 0.90 | 0.80 |
8 Steps to conduct Prudential Financial's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Prudential Financial's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Prudential Financial's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Prudential Financial's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Prudential Financial's revenue streams: Identify Prudential Financial's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Prudential Financial's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Prudential Financial's growth potential: Evaluate Prudential Financial's management, business model, and growth potential.
- Determine Prudential Financial's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Prudential Financial's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Prudential Financial represents a small ownership stake in the entity. As a stockholder of Prudential, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Prudential Financial Dividends Analysis For Valuation
At this time, Prudential Financial's Dividend Yield is comparatively stable compared to the past year. Dividend Payout Ratio is likely to gain to 0.78 in 2024, despite the fact that Dividends Paid is likely to grow to (1.8 B). . Price Earnings Ratio is likely to gain to 15.91 in 2024, whereas Retained Earnings are likely to drop slightly above 19.4 B in 2024.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -1.8 B | -1.8 B | |
| Dividend Yield | 0.05 | 0.05 | |
| Dividend Payout Ratio | 0.74 | 0.78 | |
| Dividend Paid And Capex Coverage Ratio | 3.53 | 4.41 |
There are various types of dividends Prudential Financial can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Prudential shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Prudential Financial directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Prudential pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Prudential Financial by the value of the dividends paid out.
Prudential Financial Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Prudential Financial does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 364.6 M | |
| Quarterly Earnings Growth Y O Y | 0.527 | |
| Forward Price Earnings | 8.0128 |
Prudential Financial Current Valuation Indicators
Valuation refers to the process of determining the present value of Prudential Financial and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Prudential we look at many different elements of the entity such as Prudential's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Prudential Financial's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Prudential Financial's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Prudential Financial, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Prudential Financial's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Prudential Financial's worth.When determining whether Prudential Financial is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Prudential Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Prudential Financial Stock. Highlighted below are key reports to facilitate an investment decision about Prudential Financial Stock: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Prudential Financial. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area. For more information on how to buy Prudential Stock please use our How to Invest in Prudential Financial guide.You can also try the CEOs Directory module to screen CEOs from public companies around the world.
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Is Prudential Financial's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Prudential Financial. If investors know Prudential will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Prudential Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.527 | Dividend Share 5 | Earnings Share 6.74 | Revenue Per Share 148.498 | Quarterly Revenue Growth 0.561 |
The market value of Prudential Financial is measured differently than its book value, which is the value of Prudential that is recorded on the company's balance sheet. Investors also form their own opinion of Prudential Financial's value that differs from its market value or its book value, called intrinsic value, which is Prudential Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Prudential Financial's market value can be influenced by many factors that don't directly affect Prudential Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Prudential Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Prudential Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Prudential Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.