InvestorsObserver
×
News Home

Principal Financial Group Inc (PFG) Stock by the Numbers

Friday, June 09, 2023 03:47 PM | InvestorsObserver Analysts

Mentioned in this article

Principal Financial Group Inc (PFG) Stock by the Numbers

InvestorsObserver gives Principal Financial Group Inc (PFG) a strong valuation score of 86 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. PFG currently holds a better value than 86% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.

Valuation Rank - 86
PFG gets a 86 Valuation Rank today. Find out what this means to you and get the rest of the rankings on PFG!

Metrics Analysis

PFG has a trailing twelve month Price to Earnings (PE) ratio of 3.9. The historical average of roughly 15 shows a good value for PFG stock as investors are paying lower share prices relative to the company's earnings. PFG's low trailing PE ratio shows that the firm has been trading below its fair market value recently. Its trailing 12-month earnings per share (EPS) of 34.28 more than justifies the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings.
PFG's 12-month-forward PE to Growth (PEG) ratio of 1.24 is considered a poor value as the market is overvaluing PFG in relation to the company's projected earnings growth due. PFG's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.

Summary

All together these valuation metrics paint a pretty poor picture for PFG at its current price due to a overvalued PEG ratio due to strong growth. The PE and PEG for PFG are worse than the average of the market resulting in a valuation score of 86. Click Here to get the full Report on Principal Financial Group Inc (PFG) stock.

You May Also Like

Get the InvestorsObserver App

InvestorsObserver App
iOS App Android App