# Prudential plc (PRU.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Financial Services / Insurance. Price 1019p, market value 25.2 billionp.

## Valuation
- **P/E (trailing): 9.7×** (5-yr avg 973.9×, 3-yr avg 973.9×). Prudential plc trades at 9.7× trailing earnings, well below its own five-year average of 973.9×: cheap by its own standards. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 9.9×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.12**. A PEG of 0.12 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.9×**. Each dollar of revenue is priced at 0.9×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.7×**. The shares trade at 1.7× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 4.1×**. Enterprise value is 4.1× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 16.8%** (5-yr avg 0.1%). Free cash flow equals 16.8% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 10.3%**. The inverse of the P/E: 10.3% of the price is earned each year.

## Profitability
- **Gross margin: 100.0%**. Prudential plc keeps 100.0% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 19.1%**. 19.1% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 14.3%**. 14.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 20.2%**. 20.2% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 30.9%**. Return on all capital, debt included, is 30.9%: comfortably above what that capital costs.
- **Return on assets: 2.8%**. Each dollar of assets produces 2.8% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 74.8%** (3-yr 58.6%/yr, 5-yr 0.1%/yr). Revenue grew 74.8% over the last year, against 0.1% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 85.7%** (5-yr 10.7%/yr). Earnings per share rose 85.7%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 28.5%/yr**. Free cash flow has compounded at 28.5% a year over three years.

## Financial health
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.
- **Cash and short-term investments: 5.7 billionp**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 2.00%** (0p per share, trailing). Prudential plc yields 2.00%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 15%** (20% of free cash flow). 15% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Dividend growth (5 yr): -6.4%/yr** (1-yr 8.7%). The dividend has not grown over five years.
- **Shareholder yield: 8.1%**. Dividends plus net buybacks return 8.1% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (14 analysts). 14 analysts cover Prudential plc; the consensus is strong_buy, with an average price target of 1419p (+39% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 4.5%** (YTD -10.9%, 3-mo 7.0%). The shares are up 4.5% over twelve months including dividends.
- **From 52-week high: -17.7%** (12.0% above the low). Trading 18% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 47**. An RSI of 47 is neutral.
- **Beta (1 yr): 1.21** (volatility 27%). Beta of 1.21 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=PRU.L · Page: https://foliofundamentals.com/stocks/pru.l

Not investment advice.