Latest Ratios: P/E Ratio 12.2x · EV/EBITDA 7.4x · ROE 9.9%. (2000–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $24.0B | $19.9B | $17.5B | $19.2B | $21.4B | $19.7B | $13.7B | $15.5B | $12.8B | $20.7B | $16.9B |
| Enterprise Value | $23.5B | $19.4B | $17.4B | $18.5B | $20.7B | $22.1B | $15.2B | $16.8B | $13.1B | $21.4B | $17.4B |
| P/E Ratio → | 12.24 | 16.80 | 11.59 | 30.85 | 4.50 | 12.49 | 9.82 | 11.09 | 8.26 | 8.95 | 12.86 |
| P/S Ratio | 1.44 | 1.27 | 1.09 | 1.41 | 1.22 | 1.37 | 0.93 | 0.95 | 0.90 | 1.47 | 1.37 |
| P/B Ratio | 2.02 | 1.61 | 1.53 | 1.72 | 2.08 | 1.20 | 0.81 | 1.03 | 1.08 | 1.59 | 1.63 |
| P/FCF | 4.48 | 4.49 | 3.86 | 5.21 | 7.01 | 6.39 | 3.78 | 2.88 | 2.52 | 5.14 | 4.57 |
| P/OCF | 5.28 | 4.39 | 3.80 | 5.07 | 6.75 | 6.13 | 3.67 | 2.81 | 2.47 | 4.94 | 4.39 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.24 | 1.08 | 1.36 | 1.18 | 1.53 | 1.03 | 1.03 | 0.92 | 1.52 | 1.40 |
| EV / EBITDA | 7.38 | 11.65 | 8.11 | 18.32 | 3.29 | 10.11 | 7.83 | 8.73 | 6.58 | 8.76 | 9.78 |
| EV / EBIT | 16.58 | 13.70 | 9.21 | 25.08 | 3.45 | 11.56 | 9.00 | 9.90 | 7.33 | 9.52 | 10.93 |
| EV / FCF | — | 4.38 | 3.84 | 5.02 | 6.76 | 7.15 | 4.20 | 3.13 | 2.58 | 5.33 | 4.70 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 45.2% | 45.2% | 45.6% | 43.2% | 63.0% | 49.0% | 43.8% | 38.9% | 42.5% | 44.5% | 44.2% |
| Operating Margin | 9.1% | 9.1% | 11.7% | 5.4% | 34.1% | 13.2% | 11.5% | 10.4% | 12.5% | 16.0% | 12.8% |
| Net Profit Margin | 7.6% | 7.6% | 9.7% | 4.6% | 27.1% | 11.0% | 9.5% | 8.6% | 10.9% | 16.4% | 10.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.9% | 9.9% | 13.9% | 5.8% | 35.5% | 9.5% | 8.8% | 10.4% | 12.4% | 19.7% | 13.3% |
| ROA | 0.4% | 0.4% | 0.5% | 0.2% | 1.6% | 0.5% | 0.5% | 0.5% | 0.6% | 1.0% | 0.6% |
| ROIC | 9.1% | 9.1% | 13.0% | 5.5% | 31.7% | 7.7% | 7.3% | 8.9% | 10.3% | 13.7% | 11.3% |
| ROCE | 0.5% | 0.5% | 0.7% | 0.3% | 2.0% | 0.6% | 0.6% | 0.6% | 0.7% | 0.9% | 0.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.32 | 0.32 | 0.36 | 0.36 | 0.40 | 0.29 | 0.26 | 0.26 | 0.28 | 0.25 | 0.31 |
| Debt / EBITDA | 2.37 | 2.37 | 1.91 | 3.95 | 0.65 | 2.15 | 2.24 | 1.99 | 1.66 | 1.31 | 1.79 |
| Net Debt / Equity | — | -0.04 | -0.01 | -0.06 | -0.07 | 0.14 | 0.09 | 0.09 | 0.03 | 0.06 | 0.04 |
| Net Debt / EBITDA | -0.29 | -0.29 | -0.05 | -0.71 | -0.12 | 1.08 | 0.78 | 0.68 | 0.16 | 0.31 | 0.26 |
| Debt / FCF | — | -0.11 | -0.02 | -0.19 | -0.25 | 0.76 | 0.42 | 0.24 | 0.06 | 0.19 | 0.12 |
| Interest Coverage | 644.64 | 644.64 | 726.77 | 388.84 | 4989.17 | 1910.90 | 1693.50 | — | — | — | — |
Net cash position: cash ($4.4B) exceeds total debt ($4.0B)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.21 | 3.21 | 5.24 | 4.82 | 0.53 | 34.77 | 983.28 | 796.17 | 1503.48 | 45.67 | 43.83 |
| Quick Ratio | 3.21 | 3.21 | 5.24 | 4.82 | 5.14 | 34.77 | 983.28 | 874.25 | 1689.33 | 1261.16 | 1044.51 |
| Cash Ratio | 1.88 | 1.88 | 3.97 | 3.57 | 3.30 | 33.71 | 962.93 | 777.54 | 1470.54 | 1102.41 | 896.81 |
| Asset Turnover | — | 0.05 | 0.05 | 0.04 | 0.06 | 0.05 | 0.05 | 0.06 | 0.06 | 0.06 | 0.05 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.7% | 3.4% | 3.8% | 3.3% | 3.0% | 3.3% | 4.5% | 3.9% | 4.7% | 2.6% | 2.7% |
| Payout Ratio | 57.7% | 57.7% | 41.9% | 100.4% | 13.5% | 41.4% | 44.0% | 43.5% | 38.7% | 23.4% | 35.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.2% | 6.0% | 8.6% | 3.2% | 22.2% | 8.0% | 10.2% | 9.0% | 12.1% | 11.2% | 7.8% |
| FCF Yield | 22.3% | 22.3% | 25.9% | 19.2% | 14.3% | 15.6% | 26.5% | 34.7% | 39.7% | 19.4% | 21.9% |
| Buyback Yield | 3.8% | 4.5% | 6.0% | 3.8% | 7.9% | 4.7% | 2.2% | 1.8% | 5.3% | 1.1% | 1.6% |
| Total Shareholder Yield | 6.5% | 8.0% | 9.7% | 7.1% | 10.9% | 8.1% | 6.7% | 5.7% | 10.0% | 3.7% | 4.4% |
| Shares Outstanding | — | $226M | $226M | $245M | $255M | $273M | $277M | $281M | $289M | $293M | $293M |
Includes 30+ ratios · 26 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying PFG stock.
Principal Financial Group, Inc.'s current P/E ratio is 12.2x. The historical average is 16.6x. This places it at the 36th percentile of its historical range.
Principal Financial Group, Inc.'s current EV/EBITDA is 7.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.7x.
Principal Financial Group, Inc.'s return on equity (ROE) is 9.9%. The historical average is 11.2%.
Based on historical data, Principal Financial Group, Inc. is trading at a P/E of 12.2x. This is at the 36th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Principal Financial Group, Inc.'s current dividend yield is 2.73% with a payout ratio of 57.7%.
Principal Financial Group, Inc. has 45.2% gross margin and 9.1% operating margin.
Principal Financial Group, Inc.'s Debt/EBITDA ratio is 2.4x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Volatile underwriting profitability dependence
Metrics are mathematically derived from official filings.
Discount Reflects Thin Verified Returns
Based on reported figures, PFG trades at 2.05x book and 21.49x trailing earnings, a premium to LNC and PRU that the recent ROE of 5.0% does not obviously justify on its own.
A 2.05x price-to-book multiple implies the market expects returns on equity well above the 5.0% reported in the most recent quarter, and the trailing ten-quarter ROE averaging only about 3% makes that expectation demanding. The gap between trailing P/E of 21.49x and forward P/E of 12.12x suggests the market is capitalizing a recovery in earnings rather than the depressed trailing base. Investors should monitor whether the premium to book persists if recent quarterly profitability proves timing-driven rather than structural.
Combined Ratio Improvement Largely Recent
As reported in the quarterly data, PFG's combined ratio improved from 109.8% in 2024Q3 to 81.8% in 2026Q3, though it has averaged near 88% across the ten periods, leaving limited margin for error.
The move below 100% in most recent quarters indicates underwriting profit has returned, with the loss ratio falling from 64.9% to roughly 46% to 50%. However, expense ratios ranging from 29% to 45% remain the larger swing factor, and the 2025Q1 reading of 99.2% shows how quickly the margin can compress. Without disclosed prior-year reserve development, it remains unclear how much of the improvement reflects current pricing versus favorable reserve releases.
ROE Dependent on Volatile Earnings
Based on PFG's reported figures, ROE swung from -1.9% to 7.9% over the period, and ROA stayed below 0.3% in every quarter, reflecting a highly levered balance sheet relative to earnings.
With ROA never exceeding 0.3%, the return on equity is driven mainly by leverage on a very large asset base rather than by strong returns on assets. Investment income contribution is not disclosed in the supplied data, so the split between underwriting profit and float yield cannot be measured here. The most recent 5.0% ROE is well above the decade-period average, which warrants caution about extrapolating it.
Asset Growth Outpacing Equity Base
According to the reported balance sheet, total assets rose from $308.8B to $338.7B while equity moved only from $11.0B to $11.8B, implying a widening gap between the capital base and the liabilities it supports.
The reported debt-to-equity ratio of 0.32 to 0.38 appears low for an institution of this kind and may exclude significant insurance-related liabilities, which warrants verification. Asset growth of roughly 10% against equity growth of about 7% suggests leverage is building gradually. Investors should monitor whether statutory capital keeps pace with asset expansion as the base grows.
Premium Versus Peers Lacks Return Support
As reported in peer data, PFG's 2.05x P/B sits above PRU at 1.20x and VOYA at 1.36x, while its 5.0% recent ROE trails LNC's 22.0% and MET's 12.8%, creating a valuation premium without a clear return advantage.
PFG's valuation premium over Prudential and Voya is difficult to reconcile with its lower trailing ROE, suggesting the market is paying for franchise quality or retirement-platform stickiness rather than current returns. Lincoln's 22.0% ROE on a 0.67x multiple shows how sharply the market is discounting certain peers. The premium may be justified if PFG's bundled SMB retirement model sustains earnings, but that case is not yet visible in the reported return metrics.
Combined Ratio Obscures Reserve Uncertainty
The combined ratio is most commonly misapplied to PFG as a clean measure of underwriting quality, yet the supplied data does not disclose prior-year reserve development, so an 81.8% reading may overstate current profitability.
Combined ratio ignores whether recent loss ratios benefit from releases of prior-year reserves, which can flatter the reported figure. A more reliable approach would adjust the combined ratio for reserve development and look at the trend in the accident-year loss ratio. Until such data is available, investors should treat the recent sub-90% readings as provisional rather than as evidence of a sustained underwriting margin.