Latest Ratios: P/E Ratio 21.4x · EV/EBITDA 14.3x · ROE 9.9%. (2000–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $24.3B | $19.9B | $17.5B | $19.2B | $21.4B | $19.7B | $13.7B | $15.5B | $12.8B | $20.7B | $16.9B |
| Enterprise Value | $23.8B | $19.4B | $17.4B | $18.5B | $20.7B | $22.1B | $15.2B | $16.8B | $13.1B | $21.4B | $17.4B |
| P/E Ratio → | 21.44 | 16.80 | 11.59 | 30.85 | 4.50 | 12.49 | 9.82 | 11.09 | 8.26 | 8.95 | 12.86 |
| P/S Ratio | 1.56 | 1.27 | 1.09 | 1.41 | 1.22 | 1.37 | 0.93 | 0.95 | 0.90 | 1.47 | 1.37 |
| P/B Ratio | 2.05 | 1.61 | 1.53 | 1.72 | 2.08 | 1.20 | 0.81 | 1.03 | 1.08 | 1.59 | 1.63 |
| P/FCF | 5.48 | 4.49 | 3.86 | 5.21 | 7.01 | 6.39 | 3.78 | 2.88 | 2.52 | 5.14 | 4.57 |
| P/OCF | 5.36 | 4.39 | 3.80 | 5.07 | 6.75 | 6.13 | 3.67 | 2.81 | 2.47 | 4.94 | 4.39 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.24 | 1.08 | 1.36 | 1.18 | 1.53 | 1.03 | 1.03 | 0.92 | 1.52 | 1.40 |
| EV / EBITDA | 14.29 | 11.65 | 8.11 | 18.32 | 3.29 | 10.11 | 7.83 | 8.73 | 6.58 | 8.76 | 9.78 |
| EV / EBIT | 16.83 | 13.70 | 9.21 | 25.08 | 3.45 | 11.56 | 9.00 | 9.90 | 7.33 | 9.52 | 10.93 |
| EV / FCF | — | 4.38 | 3.84 | 5.02 | 6.76 | 7.15 | 4.20 | 3.13 | 2.58 | 5.33 | 4.70 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 45.2% | 45.2% | 45.6% | 43.2% | 63.0% | 49.0% | 43.8% | 38.9% | 42.5% | 44.5% | 44.2% |
| Operating Margin | 9.1% | 9.1% | 11.7% | 5.4% | 34.1% | 13.2% | 11.5% | 10.4% | 12.5% | 16.0% | 12.8% |
| Net Profit Margin | 7.6% | 7.6% | 9.7% | 4.6% | 27.1% | 11.0% | 9.5% | 8.6% | 10.9% | 16.4% | 10.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.9% | 9.9% | 13.9% | 5.8% | 35.5% | 9.5% | 8.8% | 10.4% | 12.4% | 19.7% | 13.3% |
| ROA | 0.4% | 0.4% | 0.5% | 0.2% | 1.6% | 0.5% | 0.5% | 0.5% | 0.6% | 1.0% | 0.6% |
| ROIC | 9.1% | 9.1% | 13.0% | 5.5% | 31.7% | 7.7% | 7.3% | 8.9% | 10.3% | 13.7% | 11.3% |
| ROCE | 0.4% | 0.4% | 0.6% | 0.3% | 2.0% | 0.6% | 0.6% | 0.6% | 0.7% | 0.9% | 0.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.32 | 0.32 | 0.36 | 0.36 | 0.40 | 0.29 | 0.26 | 0.26 | 0.28 | 0.25 | 0.31 |
| Debt / EBITDA | 2.37 | 2.37 | 1.91 | 3.95 | 0.65 | 2.15 | 2.24 | 1.99 | 1.66 | 1.31 | 1.79 |
| Net Debt / Equity | — | -0.04 | -0.01 | -0.06 | -0.07 | 0.14 | 0.09 | 0.09 | 0.03 | 0.06 | 0.04 |
| Net Debt / EBITDA | -0.29 | -0.29 | -0.05 | -0.71 | -0.12 | 1.08 | 0.78 | 0.68 | 0.16 | 0.31 | 0.26 |
| Debt / FCF | — | -0.11 | -0.02 | -0.19 | -0.25 | 0.76 | 0.42 | 0.24 | 0.06 | 0.19 | 0.12 |
| Interest Coverage | 644.64 | 644.64 | 726.77 | 388.84 | 4989.17 | 1910.90 | 1693.50 | — | — | — | — |
Net cash position: cash ($4.4B) exceeds total debt ($4.0B)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.21 | 3.21 | 52.50 | 57.70 | 0.53 | 34.77 | 983.28 | 796.17 | 1503.48 | 45.67 | 43.83 |
| Quick Ratio | 3.21 | 3.21 | 52.50 | 57.70 | 5.14 | 34.77 | 983.28 | 874.25 | 1689.33 | 1261.16 | 1044.51 |
| Cash Ratio | 1.88 | 1.88 | 39.54 | 42.53 | 3.30 | 33.71 | 962.93 | 777.54 | 1470.54 | 1102.41 | 896.81 |
| Asset Turnover | — | 0.05 | 0.05 | 0.04 | 0.06 | 0.05 | 0.05 | 0.06 | 0.06 | 0.06 | 0.05 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.7% | 3.4% | 3.8% | 3.3% | 3.0% | 3.3% | 4.5% | 3.9% | 4.7% | 2.6% | 2.7% |
| Payout Ratio | 57.7% | 57.7% | 41.9% | 100.4% | 13.5% | 41.4% | 44.0% | 43.5% | 38.7% | 23.4% | 35.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.7% | 6.0% | 8.6% | 3.2% | 22.2% | 8.0% | 10.2% | 9.0% | 12.1% | 11.2% | 7.8% |
| FCF Yield | 18.3% | 22.3% | 25.9% | 19.2% | 14.3% | 15.6% | 26.5% | 34.7% | 39.7% | 19.4% | 21.9% |
| Buyback Yield | 3.7% | 4.5% | 6.0% | 3.8% | 7.9% | 4.7% | 2.2% | 1.8% | 5.3% | 1.1% | 1.6% |
| Total Shareholder Yield | 6.4% | 8.0% | 9.7% | 7.1% | 10.9% | 8.1% | 6.7% | 5.7% | 10.0% | 3.7% | 4.4% |
| Shares Outstanding | — | $226M | $226M | $245M | $255M | $273M | $277M | $281M | $289M | $293M | $293M |
SMB market retention volatility
Based on reported figures, PFG trades at a P/B of 1.96, which appears to command a premium relative to peers like Prudential and Lincoln National, suggesting that investors are pricing in the firm's specialized SMB retirement ecosystem rather than just its underlying insurance book value.
The current valuation multiple indicates that the market views PFG as a service-oriented asset manager rather than a traditional, capital-intensive insurer. This premium warrants further investigation into whether the firm's fee-based revenue streams can maintain their current trajectory if equity market volatility persists.
According to quarterly financial data, PFG's combined ratio has exhibited significant instability, ranging from a peak of 141.1% in 2023Q4 to a more favorable 85.2% in 2026Q1, highlighting the inherent sensitivity of the firm's underwriting book to episodic claims spikes and actuarial adjustments.
The wide variance in the combined ratio suggests that PFG's underwriting profitability is not yet fully insulated from the cyclical nature of its insurance segments. Investors should monitor whether the recent divestiture of capital-intensive blocks will successfully dampen this volatility in future reporting periods.
As reported in recent financial statements, PFG maintains a debt-to-equity ratio of 0.32%, which appears exceptionally conservative for a financial institution and suggests significant capacity for future capital deployment or strategic M&A, provided the firm's underlying insurance liabilities are accurately reflected in these calculations.
This low leverage profile provides a buffer against market-related adjustments that often plague insurance balance sheets. However, the analyst must consider whether this capital position is truly indicative of strength or if it reflects a deliberate strategy to minimize interest rate sensitivity in a shifting economic environment.
The market frequently misapplies the P/E ratio to PFG, which obscures the impact of non-cash market-related adjustments and DAC amortization that frequently distort headline earnings, making a P/B-based valuation approach a more reliable anchor for assessing the firm's true underlying financial health.
Relying on P/E ratios for PFG often leads to misleading conclusions during periods of high market volatility, as non-cash accounting adjustments can create artificial earnings swings. Investors should instead focus on ROE and book value growth to better understand the firm's long-term value creation potential.
Includes 30+ ratios · 26 years · Updated daily
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Quick answers to the most common questions about buying PFG stock.
Principal Financial Group, Inc.'s current P/E ratio is 21.4x. The historical average is 16.6x. This places it at the 84th percentile of its historical range.
Principal Financial Group, Inc.'s current EV/EBITDA is 14.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.7x.
Principal Financial Group, Inc.'s return on equity (ROE) is 9.9%. The historical average is 11.2%.
Based on historical data, Principal Financial Group, Inc. is trading at a P/E of 21.4x. This is at the 84th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Principal Financial Group, Inc.'s current dividend yield is 2.69% with a payout ratio of 57.7%.
Principal Financial Group, Inc. has 45.2% gross margin and 9.1% operating margin.
Principal Financial Group, Inc.'s Debt/EBITDA ratio is 2.4x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.