What do the Fundamentals Predict for Prudential Financial Inc (PRU) Stock?

Prudential Financial Inc (PRU) receives a strong valuation ranking of 84 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. PRU has a better value than 84% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

PRU gets a 84 Valuation Rank today. Find out what this means to you and get the rest of the rankings on PRU!

See Full PRU Report

Metrics Analysis

PRU's trailing-12-month Price to Earnings (PE) ratio of 5.7 puts it below the historical average of roughly 15. PRU is a good value at its current trading price as investors are paying less than what its worth in relation to the company's earnings. PRU's trailing-12-month earnings per share (EPS) of 18.34 does justify what it is currently trading at in the market. Trailing PE ratios, however, do not factor in a company's projected growth rate, resulting in some firms having high PE ratios due to high growth potentially enticing investors even if current earnings are low. PRU currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 0.79. The market is currently undervaluing PRU in relation to its projected growth due to the PEG ratio being below the fair market value of 1. PRU's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

All together these valuation metrics paint a pretty strong picture for PRU at its current price due to a undervalued PEG ratio due to strong growth. The PE and PEG for PRU are better than the average of the market resulting in a valuation score of 84. Click Here to get the full Report on Prudential Financial Inc (PRU) stock.