Latest Ratios: P/E Ratio 21.7x · EV/EBITDA 14.5x · 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 | $24.6B | $19.9B | $17.5B | $19.2B | $21.4B | $19.7B | $13.7B | $15.5B | $12.8B | $20.7B | $16.9B |
| Enterprise Value | $24.1B | $19.4B | $17.4B | $18.5B | $20.7B | $22.1B | $15.2B | $16.8B | $13.1B | $21.4B | $17.4B |
| P/E Ratio → | 21.70 | 16.80 | 11.59 | 30.85 | 4.50 | 12.49 | 9.82 | 11.09 | 8.26 | 8.95 | 12.86 |
| P/S Ratio | 1.57 | 1.27 | 1.09 | 1.41 | 1.22 | 1.37 | 0.93 | 0.95 | 0.90 | 1.47 | 1.37 |
| P/B Ratio | 2.08 | 1.61 | 1.53 | 1.72 | 2.08 | 1.20 | 0.81 | 1.03 | 1.08 | 1.59 | 1.63 |
| P/FCF | 5.54 | 4.49 | 3.86 | 5.21 | 7.01 | 6.39 | 3.78 | 2.88 | 2.52 | 5.14 | 4.57 |
| P/OCF | 5.42 | 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 | 14.47 | 11.65 | 8.11 | 18.32 | 3.29 | 10.11 | 7.83 | 8.73 | 6.58 | 8.76 | 9.78 |
| EV / EBIT | 17.04 | 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 | 4.6% | 6.0% | 8.6% | 3.2% | 22.2% | 8.0% | 10.2% | 9.0% | 12.1% | 11.2% | 7.8% |
| FCF Yield | 18.0% | 22.3% | 25.9% | 19.2% | 14.3% | 15.6% | 26.5% | 34.7% | 39.7% | 19.4% | 21.9% |
| Buyback Yield | 3.7% | 4.5% | 6.0% | 3.8% | 7.9% | 4.7% | 2.2% | 1.8% | 5.3% | 1.1% | 1.6% |
| Total Shareholder Yield | 6.3% | 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
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
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 21.7x. The historical average is 16.6x. This places it at the 84th percentile of its historical range.
Principal Financial Group, Inc.'s current EV/EBITDA is 14.5x. 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 21.7x. This is at the 84th 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 2.66% 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
Revenue decline and SMB exposure
Metrics are mathematically derived from official filings.
Combined Ratio Resilience Amid Revenue Decline
PFG's combined ratio improved to 87.3% in Q2 2026 from 99.2% a year earlier, as reported in financial statements, indicating solid underwriting discipline despite top-line pressure.
The combined ratio has been below 100% for five consecutive quarters, with Q2 2026 at 87.3%, driven by a loss ratio of 51.0% and an expense ratio of 36.3%. The improvement from the 99.2% in Q1 2025 suggests effective cost control and favorable loss experience, though the expense ratio remains elevated relative to the 29.4% in Q4 2024, indicating that efficiency gains may be plateauing. Investors should monitor whether the low loss ratio is sustainable or benefits from reserve releases, as prior analysis suggested.
ROE Recovery Tempered by Revenue Headwinds
ROE rebounded to 3.2% in Q2 2026 from a negative -1.9% in Q3 2024, as per SEC filings, but remains below the 7.9% peak in Q4 2024, reflecting modest earnings power.
The quarterly ROE has been volatile, ranging from -1.9% to 7.9% over the past ten quarters, with the latest at 3.2%. This volatility appears tied to investment income swings and underwriting results, as the combined ratio improved but revenue declined 3.1% TTM. The implied ROE from the current P/B of 2.02 and P/E of 21.1 suggests the market expects normalized earnings above recent levels, but the lack of revenue growth may cap upside. The company's shift to a capital-light model could improve ROE stability, but the recent quarterly figures do not yet show a clear upward trend.
Expense Ratio Signals Scale Constraints
PFG's expense ratio averaged 36.3% in Q2 2026, up from 29.4% in Q4 2024, as reported in financial statements, indicating that fixed costs are not being absorbed by revenue growth.
The expense ratio has been volatile, with a low of 29.4% in Q4 2024 and a high of 44.9% in Q3 2024, and the latest 36.3% is above the 10-quarter average. This suggests that the high fixed-cost base is not benefiting from scale as revenue declines, limiting operating leverage. Compared to peers like Voya (expense ratio not directly available but implied by combined ratio), PFG's efficiency appears weaker, which may justify a valuation discount. Management's focus on cost discipline is evident, but without revenue stabilization, expense ratio improvements may be limited.
Underwriting Leverage Appears Conservative
PFG's debt-to-equity ratio of 0.34 in Q2 2026, as per balance sheet data, is low relative to peers like MetLife (0.70) and Prudential (0.65), suggesting a conservative capital structure.
The reported D/E of 0.34 is significantly lower than the peer average, but this figure likely excludes insurance-related liabilities and non-recourse debt, as noted in prior analysis. The premium-to-surplus ratio, a more relevant measure for insurers, is not directly provided, but the low D/E and equity cushion of 3.4% of assets suggest adequate capitalization. However, the balance sheet is expanding faster than equity, with assets up 14.3% versus equity up 8.0% over the period, which could strain capital ratios if growth continues. Investors should monitor the quality of capital and the potential for hidden leverage in insurance reserves.
Valuation Discount Reflects Mixed Fundamentals
PFG trades at a P/B of 2.02, above Voya's 1.34 but below MetLife's 2.15, as per market data, implying the market sees PFG's franchise as higher quality than Voya but not as diversified as MetLife.
PFG's P/B of 2.02 is at a premium to most peers, including Prudential (1.19) and Unum (1.35), but its ROE of 3.2% (latest quarter) is below the peer average, suggesting the market is pricing in future improvement. The forward P/E of 11.60 is lower than the trailing 21.10, indicating expected earnings growth, but the negative revenue trend and reliance on investment income may undermine that expectation. Compared to Voya, PFG's higher P/B may be justified by its more integrated SMB retirement model, but the lack of revenue growth and international regulatory risks warrant a discount to MetLife's diversified franchise.
Combined Ratio May Overstate Underwriting Quality
The combined ratio of 87.3% in Q2 2026, as reported in financial statements, may be flattered by reserve releases, obscuring underlying underwriting performance.
The combined ratio is a key metric for insurers, but for PFG, it may be misleading due to the potential for prior-year reserve releases, as suggested by prior analysis. The loss ratio of 51.0% is low relative to the 64.9% in Q3 2024, but this improvement could be driven by favorable development rather than current-year experience. Additionally, the expense ratio of 36.3% is high, indicating that the combined ratio's strength is not from operational efficiency. Investors should adjust for reserve releases and focus on the underlying loss ratio trend, which has been volatile, to assess true underwriting profitability. A more appropriate metric might be the underwriting margin excluding reserve adjustments, which would provide a clearer picture of core performance.