Latest Ratios: P/E Ratio 11.2x · EV/EBITDA 8.8x · ROE 10.9%. (2001–2025 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 | $39.7B | $39.5B | $42.6B | $37.8B | $37.0B | $42.2B | $30.9B | $38.5B | $34.8B | $50.1B | $44.7B |
| Enterprise Value | $43.0B | $42.7B | $45.7B | $39.3B | $40.8B | $49.0B | $38.1B | $44.0B | $40.2B | $55.7B | $51.9B |
| P/E Ratio → | 11.18 | 11.05 | 15.80 | 15.39 | — | 5.55 | — | 9.27 | 8.58 | 6.44 | 10.72 |
| P/S Ratio | 0.65 | 0.65 | 0.60 | 0.70 | 0.65 | 0.59 | 0.54 | 0.59 | 0.55 | 0.84 | 0.76 |
| P/B Ratio | 1.12 | 1.11 | 1.41 | 1.27 | 1.16 | 0.67 | 0.45 | 0.60 | 0.71 | 0.92 | 0.97 |
| P/FCF | 6.34 | 6.30 | 5.01 | 5.81 | 7.18 | 4.00 | 3.73 | 2.43 | 1.60 | 4.50 | 3.45 |
| P/OCF | 6.34 | 6.30 | 5.01 | 5.81 | 7.18 | 4.30 | 3.69 | 1.96 | 1.60 | 3.73 | 3.02 |
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 | — | 0.70 | 0.65 | 0.72 | 0.72 | 0.69 | 0.67 | 0.68 | 0.64 | 0.93 | 0.88 |
| EV / EBITDA | 8.75 | 8.70 | 12.71 | 13.08 | — | 4.43 | 284.68 | 7.94 | 8.05 | 8.30 | 8.62 |
| EV / EBIT | 8.99 | 8.93 | 14.23 | 12.78 | — | 4.52 | — | 8.66 | 8.31 | 8.59 | 9.10 |
| EV / FCF | — | 6.82 | 5.37 | 6.03 | 7.92 | 4.64 | 4.61 | 2.78 | 1.86 | 5.00 | 4.00 |
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 | 42.0% | 42.0% | 24.8% | 32.4% | 20.9% | 39.7% | 26.7% | 32.0% | 28.8% | 34.3% | 33.2% |
| Operating Margin | 7.9% | 7.9% | 4.5% | 5.7% | -3.3% | 15.2% | -0.6% | 7.8% | 7.7% | 10.9% | 9.7% |
| Net Profit Margin | 5.9% | 5.9% | 3.9% | 4.6% | -2.9% | 12.5% | -0.7% | 6.5% | 6.5% | 13.2% | 7.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.9% | 10.9% | 9.1% | 8.1% | -3.5% | 13.6% | -0.6% | 7.4% | 7.9% | 15.7% | 9.9% |
| ROA | 0.5% | 0.5% | 0.4% | 0.4% | -0.2% | 0.9% | -0.0% | 0.5% | 0.5% | 1.0% | 0.6% |
| ROIC | 10.0% | 10.0% | 7.5% | 6.9% | -2.7% | 11.2% | -0.3% | 6.2% | 6.3% | 8.6% | 8.0% |
| ROCE | 0.9% | 0.9% | 0.4% | 0.4% | -0.2% | 1.2% | -0.0% | 6.8% | 6.9% | 9.5% | 9.1% |
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 | 0.65 | 0.65 | 0.72 | 0.70 | 0.66 | 0.31 | 0.31 | 0.34 | 0.42 | 0.37 | 0.46 |
| Debt / EBITDA | 4.67 | 4.67 | 6.01 | 6.95 | — | 1.78 | 156.33 | 3.94 | 4.16 | 2.99 | 3.54 |
| Net Debt / Equity | — | 0.09 | 0.10 | 0.05 | 0.12 | 0.11 | 0.11 | 0.09 | 0.11 | 0.10 | 0.16 |
| Net Debt / EBITDA | 0.66 | 0.66 | 0.86 | 0.48 | — | 0.61 | 54.08 | 1.00 | 1.09 | 0.83 | 1.19 |
| Debt / FCF | — | 0.52 | 0.36 | 0.22 | 0.74 | 0.64 | 0.88 | 0.35 | 0.25 | 0.50 | 0.56 |
| Interest Coverage | 2.27 | 2.27 | — | — | — | — | — | — | — | — | 4.31 |
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 | 0.61 | 0.61 | — | — | — | — | — | 0.51 | 0.01 | 0.01 | 0.01 |
| Quick Ratio | 0.61 | 0.61 | — | — | — | — | — | 0.51 | 0.01 | 0.01 | 0.01 |
| Cash Ratio | 0.40 | 0.40 | — | — | — | — | — | 0.51 | 0.50 | 0.49 | 0.49 |
| Asset Turnover | — | 0.08 | 0.10 | 0.08 | 0.08 | 0.08 | 0.06 | 0.07 | 0.08 | 0.07 | 0.07 |
| 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 | 4.8% | 4.9% | 4.4% | 4.9% | 4.9% | 4.3% | 5.7% | 4.3% | 4.4% | 2.6% | 2.9% |
| Payout Ratio | 53.9% | 53.9% | 69.3% | 74.2% | — | 20.5% | — | 39.2% | 37.3% | 16.5% | 29.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.9% | 9.1% | 6.3% | 6.5% | — | 18.0% | — | 10.8% | 11.6% | 15.5% | 9.3% |
| FCF Yield | 15.8% | 15.9% | 20.0% | 17.2% | 13.9% | 25.0% | 26.8% | 41.1% | 62.3% | 22.2% | 29.0% |
| Buyback Yield | 2.5% | 2.5% | 2.3% | 2.7% | 4.0% | 5.9% | 1.6% | 6.5% | 4.3% | 2.5% | 4.7% |
| Total Shareholder Yield | 7.3% | 7.4% | 6.8% | 7.6% | 8.9% | 10.2% | 7.3% | 10.8% | 8.7% | 5.1% | 7.6% |
| Shares Outstanding | — | $350M | $359M | $365M | $372M | $390M | $396M | $411M | $426M | $436M | $430M |
Interest rate and mortality sensitivity
Based on reported figures, Prudential's P/B ratio of 1.06 suggests the market continues to apply a conglomerate discount, likely reflecting investor skepticism regarding the integration of capital-intensive legacy life insurance blocks with the higher-growth, capital-light asset management operations of PGIM compared to pure-play peers.
The current valuation multiple appears to undervalue the proprietary flywheel created by PGIM's investment management capabilities within the general account. Investors should monitor whether the market begins to re-rate the stock as the company successfully sheds lower-margin, capital-intensive business units in favor of fee-based earnings.
As reported in financial statements, Prudential's combined ratio has largely fluctuated between 90% and 95% over the last ten quarters, with a notable spike to 101.2% in 2024Q4, indicating that underwriting profitability remains sensitive to periodic mortality experience and actuarial assumption adjustments.
The consistent ability to maintain a combined ratio below 100% suggests that core underwriting remains profitable, though the volatility in the loss ratio warrants further investigation. This trend implies that while the firm possesses strong pricing power, it remains vulnerable to unexpected shifts in long-term mortality trends.
According to recent SEC filings, Prudential's ROE has remained in a modest range, peaking at 4.6% in 2023Q4, which highlights the challenge of generating high returns on equity given the massive capital base required to back long-term policyholder reserves and annuity guarantees.
The contribution of underwriting profit to overall ROE appears constrained by the significant investment income required to meet policyholder obligations. This suggests that future ROE expansion may depend more on the successful scaling of PGIM's fee-based income than on traditional insurance underwriting margins.
Based on reported figures, Prudential maintains a stable D/E ratio, which has hovered around 0.6 to 0.7 over the last ten quarters, suggesting that the firm is managing its underwriting leverage within a range that supports its current financial strength and rating agency requirements.
The stability of the leverage profile indicates a disciplined approach to capital management, even during periods of significant asset portfolio rebalancing. Investors should monitor whether this leverage remains sustainable if the company continues to pursue aggressive share buyback programs alongside its core insurance operations.
As indicated by historical data, the P/E ratio is frequently misapplied to Prudential, as it fails to account for the significant non-cash accounting adjustments and market-driven volatility inherent in long-duration insurance liabilities, which can distort earnings and obscure the firm's true operational health.
Analysts should prioritize P/B and ROE as more reliable valuation anchors, as these metrics better reflect the underlying value of the invested assets backing reserves. Relying on P/E may lead to erroneous conclusions about the company's profitability during periods of significant actuarial unlocking or investment market fluctuations.
Includes 30+ ratios · 25 years · Updated daily
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Quick answers to the most common questions about buying PRU stock.
Prudential Financial, Inc.'s current P/E ratio is 11.2x. The historical average is 18.1x. This places it at the 50th percentile of its historical range.
Prudential Financial, Inc.'s current EV/EBITDA is 8.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.2x.
Prudential Financial, Inc.'s return on equity (ROE) is 10.9%. The historical average is 7.6%.
Based on historical data, Prudential Financial, Inc. is trading at a P/E of 11.2x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Prudential Financial, Inc.'s current dividend yield is 4.82% with a payout ratio of 53.9%.
Prudential Financial, Inc. has 42.0% gross margin and 7.9% operating margin.
Prudential Financial, Inc.'s Debt/EBITDA ratio is 4.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.