What is Prudential Financial, Inc. (PRU) DCF Fair Value and Intrinsic Value in 2026?

Prudential Financial, Inc. (PRU) 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 Prudential Financial, Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

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

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

Prudential Financial, 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 Prudential Financial, Inc. (PRU) for quarterly SEC filing thesis breaks?

LocalAlpha audits Prudential Financial, 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.

StocksPRU

PRU

Prudential Financial, Inc.Financial Services / Insurance - LifeINTACT

Prudential Financial, Inc., together with its subsidiaries, provides financial products and services in the United States, Japan and internationally. It operates through PGIM, Retirement Strategies, Group Insurance, Individual Life, and International Businesses segments. The PGIM segment 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 insurance and retirement businesses. The Retirement Strategies segment provides a range of retirement investment, and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors; group annuities and other products; international reinsurance; investment only products; and FlexGuard suite, Fixed annuities, and variable annuities, as well as develops and distributes individual variable and fixed annuity products. The Group Insurance segment offers various group life, and long-term and short-term group disability, as well as group corporate-, bank-, and trust-owned life insurance; and supplemental health solutions including accident, critical illness, and hospital indemnity. The Individual Life segment develops and distributes variable life, universal life, and term life insurance products. The International Businesses segment develops and distributes life insurance, retirement products, investment products, and certain accident and health products. The company provides its products and services to individual and institutional customers through its proprietary and third-party distribution networks, financial professionals, and trusted partnerships. Prudential Financial, Inc. was founded in 1875 and is headquartered in Newark, New Jersey.

Share Price

$119.24

52W: $91.89 - $127.72

DCF Fair Value

$363.74

+67.2% MoS

Thesis Hub

P/E (TTM)

10.8x

ROIC

Operating Margin

7.5%

FCF Yield

18.3%

Debt / Equity

1.64x

Piotroski Score

5/9

Altman Z-Score

4.98

Market Cap

$41.1B

Price vs. Intrinsic Value Corridor

Margin of Safety Buy Zone (<25% Discount)

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

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$363.74

MOS Buy Target (-25%)

$272.81

Valuation Overlays: DCF Fair Value ($363.74) 25% MOS Buy Target ($272.81) Revised Graham ($166.83) Graham Number ($150.67)

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

$119.24

DCF Fair Value

$363.00

+67.2% MoS

Starting Free Cash Flow ($M)$7,528M

$100M$7,528M (Reported)$50,000M

Stage 1 Growth (Years 1-5)5.3%

-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)$17,600M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$61.9B

PV of Terminal Value

$80.9B

Implied Enterprise Value

$142.8B

Implied Equity Value

$125.2B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$7,927	$8,347	$8,790	$9,255	$9,746	$10,184	$10,643	$11,122	$11,622	$12,145
Present Value (PV)	$7,272	$7,026	$6,787	$6,557	$6,334	$6,073	$5,822	$5,582	$5,351	$5,130

Benjamin Graham & Buffett Value Models

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

Graham Number+20.9% MoS

$150.67

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: $11.03BVPS: $91.47

Revised Graham Formula+28.5% MoS

$166.83

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 Earnings17.4% Yield

$20.73 / share

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

Total: $7.2BYield: 17.4%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER

-12.2% CAGR (Next 10 Yrs)

At the current price of $119.24, the market is assuming the business will compound Free Cash Flow at -12.2% 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 PRU with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Prudential Financial, 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 7.5% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Prudential Financial, Inc. (PRU) Intrinsic Valuation

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

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Prudential Financial, Inc. has an estimated DCF intrinsic fair value of $363.74 per share compared to its current market price of $119.24. This represents an estimated 67.2% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $150.67.