3 models fit Prudential Financial Inc. Common Stock and they disagree: 1 of 3 land within 15% of the average.
Two or more of our models back this value.
Discount(i)Silver77
Valued as an insurer: Residual income, P/E comparison, and Dividend discount.
ACCE opinionPrudential Financial Inc. Common Stock (PRU)
Fair value (3 models)
$133
ACCE price target
$120
Rating
Undervalued
Horizon
12 months
Fair value published on 17 Oct 2026, 00:00 CEST; previously $131 since 12 Oct 2026, 00:00 CEST.
ACCE price target published on 20 Sept 2026, 00:00 CEST.
Price used: $115 at the close on 23 Oct 2026, 22:00 CEST.
Models: Dividend discount, P/E comparison, and Residual income.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
13.6% below
+15.7% to fair value
ACCE score
76
out of 100
Analysts
0% buy
18 covering
P/E
10.7x
forward 9.8x
1-year return
+13.0%
Dividend yield
4.65%
Prudential Financial Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Prudential Financial sells whole and term life insurance, variable annuities, and group retirement plans, and its Prudential Retirement arm administers workplace pensions for large employers. Its edge is scale in those niches plus a long record of underwriting discipline in life and annuity books, which gives it a durable distribution base through banks, brokers, and employer plans. Revenue grew 14.1% over the trailing period, and the stock trades at 10.3x trailing and 7.6x forward earnings with a 12.0% ROE, so the market is pricing in little of that growth. The main thing to verify is whether the top-line acceleration reflects sustainable fee and premium growth or the timing of large group transactions and rate-driven product flows. At a $39.1B market cap and no index membership, the name is under-followed, which may be why the multiple sits this low, and it merits a deeper look at the earnings mix and capital position.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
moderate
Sequential revenue decline
QoQ revenue fell 7.1% despite YoY growth of 14.1%, signalling potential deceleration or seasonal weakness that warrants monitoring.
moderate
Quality score lagging
ACCE Quality subscore is 60, notably below Growth (76) and Value (83), suggesting earnings quality or cash conversion concerns relative to reported profits.
moderate
Insider selling concentration
Last 10 disclosures show $1.4M in sales and zero buys; no material concern alone, but worth tracking given modest insider ownership at 0.2%.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-10-09 · prices to Oct 23, 2026
Why it could do well
Stock trades at 9.8x forward earnings, well below the 11.8x sector median, suggesting meaningful undervaluation.
Free cash flow yield of 16.1% is exceptionally high, indicating strong cash generation relative to current market price.
Company returned 2.6% of shares to shareholders last year while maintaining a 4.8% dividend yield.
Why it could disappoint
Five-year revenue growth averaged only 1.3% annually, yet current valuation assumes near-term earnings expansion.
Return on invested capital of 5.3% trails the cost of capital for most financial services firms.
No analyst rates the stock Buy or Strong Buy despite consensus fair value 16.1% above the current price.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 3, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where PRU's valuation models land
Price
$114.99
Model fair value
$133
Model range
$110 to $170
Fair value $133
Price $115
The price sits inside the model range.
Model
Fair value
Upside
Dividend discount
P/E comparison
Residual income
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
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+Conviction breakdown and growth / value / quality / momentum scores