Insurance - Life · NYSE
Current Price
$96.42
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Prudential Financial, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Prudential Financial, Inc., together with its subsidiaries, provides insurance, investment management, and other financial products and services in the United States and internationally. It operates through eight segments: PGIM, Retirement, Group Insurance, Individual Annuities, Individual Life, Assurance IQ, International Businesses, and Closed Block. The company offers investment management services and solutions related to public fixed income, public equity, real estate debt and equity, private credit and other alternatives, and multi-asset class strategies to institutional and retail clients, as well as its general account. It also provides a range of retirement investment, and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors; and group life, long-term and short-term group disability, and group corporate-, bank-, and trust-owned life insurance in the United States, primarily to institutional clients for use in connection with employee and membership benefits plans, as well as sells accidental death and dismemberment, and other supplemental health solutions; and provides plan administration services in connection with its insurance coverages. In addition, the company develops and distributes individual variable and fixed annuity products, principally to the mass affluent and affluent markets; and individual variable, term, and universal life insurance products to the mass middle, mass affluent, and affluent markets in the United States. Further, it provides third-party life, health, Medicare, property and casualty, and term life products to retail shoppers through its digital and independent agent channels. The company offers its products and services to individual and institutional customers through its proprietary and third-party distribution networks. Prudential Financial, Inc. was founded in 1875 and is headquartered in Newark, New Jersey.
ROIC (TTM)
9.7%
ROE (TTM)
11.4%
FCF Yield
18.69%
Based on trailing twelve-month data, PRU shows a free cash flow per share of N/A and a ROIC of 9.7%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 18.69% are important context metrics when evaluating PRU's stock valuation relative to peers.
The intrinsic value of PRU depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether PRU is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $96.42. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Prudential Financial, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Insurance - Life industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting PRU's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Prudential Financial, Inc., this means projecting how much free cash flow the Insurance - Life will produce over the next 5-10 years, then discounting those amounts to today's dollars. PRU's ROIC of 9.7% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For PRU, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
