Latest Ratios: P/E Ratio 8.5x · EV/EBITDA 6.1x · ROE 17.1%. (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 | $33.0B | $40.1B | $21.7B | $15.4B | $18.8B | $22.6B | $23.2B | $47.7B | $44.2B | $63.2B | $49.4B |
| Enterprise Value | $31.3B | $38.9B | $24.0B | $18.7B | $22.1B | $23.7B | $24.3B | $51.2B | $44.8B | $70.5B | $56.0B |
| P/E Ratio → | 8.54 | 13.65 | 9.49 | 9.05 | — | — | 10.98 | 32.38 | 26.37 | 35.15 | 31.61 |
| P/S Ratio | 1.19 | 1.94 | 2.66 | 1.29 | — | 0.85 | 0.64 | 0.67 | 2.11 | 0.97 | 0.85 |
| P/B Ratio | 1.59 | 2.53 | 1.16 | 0.86 | 1.11 | 1.18 | 1.05 | 2.43 | 2.01 | 2.90 | 3.37 |
| P/FCF | 15.24 | 24.87 | 6.18 | 19.57 | 22.39 | 93.47 | 9.52 | — | 13.71 | 56.41 | 21.61 |
| P/OCF | 14.55 | 23.73 | 6.01 | 18.53 | 21.52 | 81.37 | 9.30 | — | 13.16 | 51.74 | 22.44 |
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 | — | 1.88 | 2.94 | 1.56 | — | 0.89 | 0.67 | 0.72 | 2.14 | 1.08 | 0.96 |
| EV / EBITDA | 6.13 | 10.21 | 8.67 | 7.14 | — | 7.89 | 7.48 | 0.76 | 2.40 | 1.17 | 1.04 |
| EV / EBIT | 6.36 | 10.21 | 7.67 | 7.38 | — | 7.89 | 7.54 | 0.77 | 1.79 | 0.91 | 17.24 |
| EV / FCF | — | 24.10 | 6.83 | 23.73 | 26.28 | 97.89 | 9.95 | — | 13.92 | 62.97 | 24.52 |
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 | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 134.4% | 132.7% | 122.8% |
| Operating Margin | 17.8% | 17.8% | 36.3% | 17.5% | 2.3% | 10.1% | 8.4% | 94.6% | 89.2% | 92.8% | 92.5% |
| Net Profit Margin | 14.3% | 14.3% | 28.1% | 14.2% | 3.7% | -7.7% | 5.8% | 0.8% | 15.1% | 3.7% | 4.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 17.1% | 17.1% | 12.5% | 9.8% | -5.6% | -9.9% | 10.1% | 2.8% | 14.4% | 13.1% | 14.0% |
| ROA | 1.7% | 1.7% | 1.3% | 1.0% | -0.6% | -0.6% | 0.4% | 0.1% | 0.5% | 0.4% | 0.4% |
| ROIC | 15.5% | 15.5% | 10.5% | 7.6% | -2.4% | 9.3% | 9.8% | 219.3% | 54.1% | 180.0% | 180.4% |
| ROCE | 2.2% | 2.2% | 1.7% | 1.3% | -0.4% | 0.8% | 0.6% | 12.3% | 2.9% | 9.7% | 9.4% |
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 | 0.28 | 0.28 | 0.25 | 0.27 | 0.30 | 0.43 | 0.41 | 0.27 | 0.28 | 0.35 | 0.47 |
| Debt / EBITDA | 1.18 | 1.18 | 1.71 | 1.86 | — | 2.74 | 2.79 | 0.08 | 0.33 | 0.13 | 0.13 |
| Net Debt / Equity | — | -0.08 | 0.12 | 0.18 | 0.19 | 0.06 | 0.05 | 0.18 | 0.03 | 0.34 | 0.45 |
| Net Debt / EBITDA | -0.33 | -0.33 | 0.82 | 1.25 | — | 0.36 | 0.33 | 0.05 | 0.04 | 0.12 | 0.12 |
| Debt / FCF | — | -0.77 | 0.65 | 4.17 | 3.89 | 4.42 | 0.43 | — | 0.21 | 6.56 | 2.91 |
| Interest Coverage | 28.00 | 28.00 | 18.27 | 14.74 | -1.17 | 9.16 | 10.20 | 134.80 | 45.70 | 135.00 | 7.32 |
Net cash position: cash ($5.7B) exceeds total debt ($4.5B)
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 | — | — | 4.25 | 2.77 | 1.42 | 11.17 | 0.25 | 3.83 | 0.39 | 0.34 | 0.20 |
| Quick Ratio | — | — | 4.25 | 2.77 | 1.42 | 11.17 | 0.25 | 3.83 | 0.39 | 0.34 | 0.20 |
| Cash Ratio | — | — | 0.56 | 0.27 | 0.56 | 15.10 | 2.39 | 120.18 | 0.39 | 0.45 | 0.20 |
| Asset Turnover | — | 0.13 | 0.04 | 0.07 | -0.17 | 0.14 | 0.07 | 0.16 | 0.03 | 0.10 | 0.10 |
| 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 | 1.8% | 1.1% | 2.5% | 3.5% | 2.5% | 1.9% | 3.5% | 2.6% | 3.0% | 2.5% | 3.2% |
| Payout Ratio | 14.9% | 14.9% | 24.2% | 31.3% | — | — | 38.4% | 208.7% | 41.4% | 65.6% | 66.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 11.7% | 7.3% | 10.5% | 11.0% | — | — | 9.1% | 3.1% | 3.8% | 2.8% | 3.2% |
| FCF Yield | 6.6% | 4.0% | 16.2% | 5.1% | 4.5% | 1.1% | 10.5% | — | 7.3% | 1.8% | 4.6% |
| Buyback Yield | 3.8% | 2.3% | 4.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 5.5% | 3.4% | 6.5% | 3.5% | 2.5% | 1.9% | 3.5% | 2.6% | 3.0% | 2.5% | 3.2% |
| Shares Outstanding | — | $1.3B | $1.4B | $687M | $684M | $657M | $649M | $1.3B | $1.3B | $1.3B | $1.3B |
Includes 30+ ratios · 26 years · Updated daily
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Quick answers to the most common questions about buying PUK stock.
Prudential plc's current P/E ratio is 8.5x. The historical average is 27.7x.
Prudential plc's current EV/EBITDA is 6.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.9x.
Prudential plc's return on equity (ROE) is 17.1%. The historical average is 10.4%.
Based on historical data, Prudential plc is trading at a P/E of 8.5x. Compare with industry peers and growth rates for a complete picture.
Prudential plc's current dividend yield is 1.76% with a payout ratio of 14.9%.
Prudential plc has 100.0% gross margin and 17.8% operating margin. Operating margin between 10-20% is typical for established companies.
Prudential plc's Debt/EBITDA ratio is 1.2x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Capital return sustainability and opacity
Discount to Peers Suggests Caution
At a price-to-book ratio of 1.61, Prudential trades at a significant discount to its Asia-focused peers like Manulife (1.96) and Sun Life (2.48), which may indicate the market is applying a higher risk premium to its specific growth drivers.
The current P/B valuation implies expectations for a return on equity significantly below the peer median of 12.6% to 13.8%, despite the company's recent ROE recovery to 11.3% in 2025Q4. This discount appears to reflect investor skepticism about the sustainability of the Hong Kong-Mainland corridor growth and perhaps the opacity introduced by the recent IFRS 17 transition. For the discount to narrow, Prudential must demonstrate consistent, high-quality earnings from its new business value generation across its diversified Asian portfolio.
Emerging Underwriting Profitability
The first quantifiable combined ratio of 92.1% in 2026Q2, per the reported data, marks a pivotal shift, indicating that Prudential's core insurance operations are generating a meaningful underwriting profit for the first time in the observed period.
This 7.9% underwriting margin, driven by a low 29.4% loss ratio and a controlled 62.7% expense ratio, suggests successful product pricing and claims management. However, this is a single-quarter snapshot and its sustainability is paramount. Investors should monitor whether this performance can be maintained against potential headwinds like medical inflation in Southeast Asia or a slowdown in high-margin protection sales.
ROE Recovery Driven by Non-Underwriting Factors
Prudential's ROE recovered from a low of -7.0% in 2022Q2 to a solid 11.3% in 2025Q4, but the prior period's negative ROA suggests this rebound is heavily influenced by volatile investment returns and accounting adjustments rather than core operational efficiency.
The sharp ROE volatility, especially in contrast to the stable 17.80% operating margin reported, indicates that a large portion of bottom-line profitability is derived from the mark-to-market swings of its asset portfolio and the float from policyholder liabilities. For a life insurer, this is expected, but the magnitude of the swings warrants careful dissection of the earnings quality to separate recurring operational profits from non-recurring market noise.
Expense Ratio Volatility Undermines Consistency
The expense ratio has shown extreme volatility, swinging from 78.9% in 2025Q4 to 62.7% in 2026Q2, which creates uncertainty about the company's true cost structure and its ability to consistently control acquisition and operating costs.
Such a large quarter-over-quarter improvement may reflect favorable seasonal patterns or changes in accounting under IFRS 17 rather than a sustainable efficiency gain. Given that commissions to bancassurance partners represent a major variable cost, this volatility suggests Prudential's cost discipline is inconsistent, making it difficult to benchmark against peers and predict future margin expansion.
Trailing Peers on Yield and Valuation
Prudential's dividend yield of 1.7% significantly trails the peer group average of over 3.0%, and its P/B valuation discount persists despite a comparable debt-to-equity ratio, suggesting the market demands a higher risk premium for its operational profile.
While peers like Manulife and Sun Life command higher multiples and offer more generous yields, Prudential's lower yield appears linked to its strategy of favoring buybacks and reinvestment into growth markets over direct cash returns. The valuation gap indicates that investors may perceive higher execution or geopolitical risks in Prudential's core Asia and Africa markets relative to the more diversified North American exposure of its peers.
The Peril of Over-Reliance on P/B Valuation
The price-to-book ratio is the metric most commonly misapplied to life insurers like Prudential, as it can be severely distorted by volatile investment portfolios and the accounting mechanics of policyholder liabilities under IFRS 17.
Book value for a life insurer includes vast reserves and investment assets marked to market, meaning P/B can fluctuate wildly with equity and bond prices, obscuring underlying franchise value. A more appropriate alternative is to analyze embedded value or price-to-new-business-value multiples, which focus on the present value of future profits from the existing book of business, providing a clearer picture of the operational economics that drive long-term returns.