What is Principal Financial Group, Inc. (PFG) DCF Fair Value and Intrinsic Value in 2026?

Principal Financial Group, Inc. (PFG) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Principal Financial Group, Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

Principal Financial Group, Inc. operates in the Financials sector (Asset Management) with an economic moat rating of NONE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Principal Financial Group, Inc.'s financial health rating and Piotroski F-Score?

Principal Financial Group, Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Principal Financial Group, Inc. (PFG) for quarterly SEC filing thesis breaks?

LocalAlpha audits Principal Financial Group, Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksPFG

PFG

Principal Financial Group IncFinancial Services / Asset ManagementINTACT

Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. The company operates through Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection segments. The Retirement and Income Solutions segment provides retirement, and related financial products and services. This segment offers products and services for defined contribution plans, including 401(k) and 403(b) plans, defined benefit plans, nonqualified executive benefit plans, employee stock ownership plans, equity compensation, and pension risk transfer services; individual retirement accounts; investment only products; and mutual funds, individual variable annuities, registered index-linked annuities, and bank products, as well as trust and custody services. The Principal Asset Management segment provides equity, fixed income, real estate, and other alternative investments, as well as fund offerings. This segment also offers pension accumulation products and services, mutual funds, asset management, income annuities, and life insurance accumulation products, as well as voluntary savings plans. The Benefits and Protection segment provides specialty benefits, such as specialty benefits group dental and vision insurance, group life and other insurance, and group and individual disability insurance, as well as administers group dental, disability, and vision benefits; and individual life insurance products comprising universal, variable universal, indexed universal, and term life insurance products. This segment serves insurance solutions for small and medium-sized businesses and their owners, as well as employees. The company was founded in 1879 and is based in Des Moines, Iowa.

Share Price

$116.17

52W: $77.9 - $121.18

DCF Fair Value

$105.46

-10.2% Premium

Thesis Hub

P/E (TTM)

16.5x

ROIC

9.2%

Operating Margin

12.3%

FCF Yield

4.2%

Debt / Equity

0.35x

Piotroski Score

7/9

Altman Z-Score

4.31

Market Cap

$24.9B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($105.46)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$105.46

MOS Buy Target (-25%)

$79.09

Valuation Overlays: DCF Fair Value ($105.46) 25% MOS Buy Target ($79.09) Revised Graham ($113.90) Graham Number ($94.53)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$116.17

DCF Fair Value

$105.29

-10.3% Premium

Starting Free Cash Flow ($M)$1,056M

$100M$1,056M (Reported)$50,000M

Stage 1 Growth (Years 1-5)6.1%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)-$1,800M (Net Cash)

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$8.9B

PV of Terminal Value

$11.8B

Implied Enterprise Value

$20.7B

Implied Equity Value

$22.5B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$1,120	$1,189	$1,261	$1,338	$1,420	$1,484	$1,551	$1,620	$1,693	$1,769
Present Value (PV)	$1,028	$1,001	$974	$948	$923	$885	$848	$813	$780	$747

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-22.9% Premium

$94.53

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $7.02BVPS: $56.57

Revised Graham Formula-2% Premium

$113.90

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings4% Yield

$4.69 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $1.0BYield: 4%

Reverse DCF: Market Growth Expectation

FAIR BARRIER

7.8% CAGR (Next 10 Yrs)

At the current price of $116.17, the market is assuming the business will compound Free Cash Flow at 7.8% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil PFG with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Principal Financial Group Inc. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 12.3% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Principal Financial Group Inc (PFG) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Principal Financial Group Inc.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Principal Financial Group Inc has an estimated DCF intrinsic fair value of $105.46 per share compared to its current market price of $116.17. This represents an estimated 10.2% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $94.53.