# Prudential Financial (PRU.US)

Canonical: https://gigainvestors.com/s/PRU

Analysis as of: 2026-10-16T07:34:06.880Z. Financial observations: FY2015–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $116.35 per share; close as of 2026-10-15.

Estimated value: low $65.33 per share, central $81.42 per share, high $108.04 per share. Buy at or below the central value $81.42 per share. Valuation as of 2026-10-16T07:34:06.880Z; scenarios are not confidence intervals.

Expected annual return: 8.8% at the stated quote. About 8.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- Financial history: 10 years

- Profitable years in the last ten: 8

- Required profitable years: 8

- Return on common equity variation (informational): 0.77×

Chart: Net income; fiscal year observations.

- FY2016: $4.3B

- FY2017: $7.8B

- FY2018: $4.0B

- FY2019: $4.1B

- FY2020: -$395M

- FY2021: $8.7B

- FY2022: -$1.7B

- FY2023: $2.5B

- FY2024: $2.7B

- FY2025: $3.5B

### moat: fail

- Common book per share

- median return on common equity below threshold

- Bank / P&C ROTE, median of available years: 9.1%

- Required median return: 10.0%

- Return uses tangible common equity: No

- Bank ROTE, second-lowest year: -0.6%

- Years with reported combined ratio: 0

Chart: Return on common equity; fiscal year observations.

- FY2016: 9.4%

- FY2017: 14.3%

- FY2018: 8.3%

- FY2019: 6.6%

- FY2020: -0.6%

- FY2021: 14.1%

- FY2022: -5.5%

- FY2023: 8.8%

- FY2024: 9.7%

- FY2025: 10.9%

### economics: fail

- Common book per share

- book value per share plus dividends compounded below 7% annually

- Book value per share + reinvested dividends, annualized return: 4.2%

- Book return interval: 10 years

- Starting book value per share: $90.99

- Ending book value per share: $91.71

Chart: Annual book + dividend return; fiscal year observations.

- FY2016: 16.1%

- FY2017: 24.0%

- FY2018: -5.4%

- FY2019: 38.2%

- FY2020: 13.8%

- FY2021: -4.2%

- FY2022: -45.1%

- FY2023: -1.0%

- FY2024: 8.6%

- FY2025: 25.2%

### management: fail

- Common book per share

- book per share gain below retained common earnings per share

- Diluted shares, 10-year annual growth: -2.6%

- Diluted shares, 5-year annual growth: -2.2%

- Share growth excluding flagged crisis recapitalisations: -2.6%

- Five-year share growth excluding flagged crisis recapitalisations: -2.2%

- Flagged crisis recapitalisations: 0

- Book created / earnings retained after dividends and buybacks: 0.09×

- Book value created per share: $0.72

- Earnings retained per share after dividends and buybacks: $7.67

Chart: Shares (first year = 100); fiscal year observations.

- FY2015: 100

- FY2016: 97

- FY2017: 95

- FY2018: 93

- FY2019: 89

- FY2020: 86

- FY2021: 85

- FY2022: 81

- FY2023: 79

- FY2024: 78

- FY2025: 77

### accounting: pass

- Financial accounting warning count: 0

- Known restatement years: 0

## Holders

## Price story

The price assumes profits grow 7.2% a year forever · "PRU Q2 Earnings Beat Estimates on PGIM and International Strength" (finance.yahoo.com, Aug 2026) · net income +31.2%

Story as of 2026-10-16T09:59:59.150Z; price observation 2026-10-15.

The price assumes profits grow 7.2% a year forever

- 2025-08-13: PRU Q2 Deep Dive: Product Diversification and Cost Initiatives Offset Margin Pressures ([finance.yahoo.com](https://finance.yahoo.com/news/pru-q2-deep-dive-product-042049220.html))

- 2026-02-04: PRU Q4 Deep Dive: Japan Sales Suspension and Asset Management Outflows Shape Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/pru-q4-deep-dive-japan-195045535.html))

- 2026-05-06: Prudential Financial Q1 2026 profit falls 15.6% after Japanese sales suspension ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/prudential-financial-q1-2026-profit-091438635.html))

### Net income · FY2025

net income +31.2%; source https://www.sec.gov/Archives/edgar/data/1137774/000113777426000048/pru-20251231.htm; observed 2026-02-12.

- FY2016: $4.3B 

- FY2017: $7.8B 

- FY2018: $4.0B 

- FY2019: $4.1B 

- FY2020: -$395M 

- FY2021: $8.7B 

- FY2022: -$1.7B 

- FY2023: $2.5B 

- FY2024: $2.7B 

- FY2025: $3.5B 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in insurance life; annual sales are USD 60.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1137774/000113777426000048/pru-20251231.htm#000113777426000048 (filed 2026-02-12); FY2025: revenue 60774000000.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PRU.US: 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.

### Why customers stay

It earns 9.1% on shareholders’ money, excluding intangible assets.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); 10-year return on tangible equity observations [[2016,0.09414996838410047],[2017,0.14322590161516335],[2018,0.08281053952321205],[2019,0.06559454963162481],[2020,-0.0058583611420096405],[2021,0.14118559700045252],[2022,-0.05465302520184356],[2023,0.08838964773544213],[2024,0.09669202066590127],[2025,0.10897712559343979]]; median 0.0912698080597713. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 1 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Dividend observations: [[2016,1300000000],[2017,1296000000],[2018,1521000000],[2019,1641000000],[2020,1766000000],[2021,1814000000],[2022,1817000000],[2023,1846000000],[2024,1891000000],[2025,1926000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1137774/000113777426000048/pru-20251231.htm (filed 2026-02-12); FY2025: cash repurchases 1000000000 USD.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PRU.US SharesStats.PercentInsiders = 0.17700000000000002 percentage points; cache date 2026-10-16.

### What could break it

"Certain of our insurance products are subject to policyholder behavior risk, which is" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1137774/000113777426000048/pru-20251231.htm (filed 2026-02-12); Certain of our insurance products are subject to policyholder behavior risk, which is

### What the price says

The price assumes profits grow 7.2% a year forever.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Price 116.35; FX 1; original perpetual distributable cash 3.304829218074659; discount 0.1; growth 0.07159579528943139. Same book-value model and 4× ceiling; no ten-year operating fade applies. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $84.79 per share

- 2016-11: $100.60 per share

- 2016-12: $104.06 per share

- 2017-01: $105.11 per share

- 2017-02: $110.54 per share

- 2017-03: $106.68 per share

- 2017-04: $107.03 per share

- 2017-05: $104.85 per share

- 2017-06: $108.14 per share

- 2017-07: $113.23 per share

- 2017-08: $102.08 per share

- 2017-09: $106.32 per share

- 2017-10: $110.46 per share

- 2017-11: $115.84 per share

- 2017-12: $114.98 per share

- 2018-01: $118.82 per share

- 2018-02: $106.32 per share

- 2018-03: $103.55 per share

- 2018-04: $106.32 per share

- 2018-05: $96.84 per share

- 2018-06: $93.51 per share

- 2018-07: $100.91 per share

- 2018-08: $98.25 per share

- 2018-09: $101.32 per share

- 2018-10: $93.78 per share

- 2018-11: $93.76 per share

- 2018-12: $81.55 per share

- 2019-01: $92.14 per share

- 2019-02: $95.85 per share

- 2019-03: $91.88 per share

- 2019-04: $105.71 per share

- 2019-05: $92.38 per share

- 2019-06: $101.00 per share

- 2019-07: $101.31 per share

- 2019-08: $80.09 per share

- 2019-09: $89.95 per share

- 2019-10: $91.14 per share

- 2019-11: $93.62 per share

- 2019-12: $93.74 per share

- 2020-01: $91.06 per share

- 2020-02: $75.45 per share

- 2020-03: $52.14 per share

- 2020-04: $62.37 per share

- 2020-05: $60.96 per share

- 2020-06: $60.90 per share

- 2020-07: $63.37 per share

- 2020-08: $67.77 per share

- 2020-09: $63.52 per share

- 2020-10: $64.02 per share

- 2020-11: $75.62 per share

- 2020-12: $78.07 per share

- 2021-01: $78.28 per share

- 2021-02: $86.72 per share

- 2021-03: $91.10 per share

- 2021-04: $100.36 per share

- 2021-05: $106.97 per share

- 2021-06: $102.47 per share

- 2021-07: $100.28 per share

- 2021-08: $105.88 per share

- 2021-09: $105.20 per share

- 2021-10: $110.05 per share

- 2021-11: $102.26 per share

- 2021-12: $108.24 per share

- 2022-01: $111.57 per share

- 2022-02: $111.66 per share

- 2022-03: $118.17 per share

- 2022-04: $108.51 per share

- 2022-05: $106.25 per share

- 2022-06: $95.68 per share

- 2022-07: $99.99 per share

- 2022-08: $95.75 per share

- 2022-09: $85.78 per share

- 2022-10: $105.19 per share

- 2022-11: $108.03 per share

- 2022-12: $99.46 per share

- 2023-01: $104.94 per share

- 2023-02: $100.00 per share

- 2023-03: $82.74 per share

- 2023-04: $87.00 per share

- 2023-05: $78.69 per share

- 2023-06: $88.22 per share

- 2023-07: $96.49 per share

- 2023-08: $94.67 per share

- 2023-09: $94.89 per share

- 2023-10: $91.44 per share

- 2023-11: $97.78 per share

- 2023-12: $103.71 per share

- 2024-01: $104.93 per share

- 2024-02: $108.99 per share

- 2024-03: $117.40 per share

- 2024-04: $110.48 per share

- 2024-05: $120.35 per share

- 2024-06: $117.19 per share

- 2024-07: $125.32 per share

- 2024-08: $121.16 per share

- 2024-09: $121.10 per share

- 2024-10: $122.48 per share

- 2024-11: $129.41 per share

- 2024-12: $118.53 per share

- 2025-01: $120.76 per share

- 2025-02: $115.10 per share

- 2025-03: $111.68 per share

- 2025-04: $102.71 per share

- 2025-05: $103.89 per share

- 2025-06: $107.44 per share

- 2025-07: $103.58 per share

- 2025-08: $109.66 per share

- 2025-09: $103.74 per share

- 2025-10: $104.00 per share

- 2025-11: $108.25 per share

- 2025-12: $112.88 per share

- 2026-01: $111.11 per share

- 2026-02: $98.38 per share

- 2026-03: $97.69 per share

- 2026-04: $98.11 per share

- 2026-05: $100.64 per share

- 2026-06: $107.93 per share

- 2026-07: $122.08 per share

- 2026-08: $117.60 per share

- 2026-09: $113.58 per share

- 2026-10: $113.41 per share

## Annual estimated value (USD per share)

- FY2016: low $73.48 per share, central $91.85 per share, high $122.47 per share

- FY2017: low $89.29 per share, central $111.61 per share, high $148.81 per share

- FY2018: low $81.62 per share, central $102.03 per share, high $136.04 per share

- FY2019: low $89.27 per share, central $111.59 per share, high $148.78 per share

- FY2020: low $114.53 per share, central $125.98 per share, high $139.98 per share

- FY2021: low $68.80 per share, central $83.11 per share, high $104.95 per share

- FY2022: low $55.72 per share, central $61.29 per share, high $68.10 per share

- FY2023: low $59.13 per share, central $65.05 per share, high $72.28 per share

- FY2024: low $64.32 per share, central $70.75 per share, high $78.61 per share

- FY2025: low $63.72 per share, central $79.42 per share, high $105.38 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1137774/000113777426000048/pru-20251231.htm); period 2025-12-31, filed 2026-02-12.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations