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Prudential Financial (BSP:P1DT34) Cyclically Adjusted Price-to-FCF : 3.15 (As of May. 23, 2024)


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What is Prudential Financial Cyclically Adjusted Price-to-FCF?

As of today (2024-05-23), Prudential Financial's current share price is R$303.90. Prudential Financial's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was R$96.38. Prudential Financial's Cyclically Adjusted Price-to-FCF for today is 3.15.

The historical rank and industry rank for Prudential Financial's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

BSP:P1DT34' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 1.15   Med: 2.93   Max: 5.03
Current: 3.03

During the past years, Prudential Financial's highest Cyclically Adjusted Price-to-FCF was 5.03. The lowest was 1.15. And the median was 2.93.

BSP:P1DT34's Cyclically Adjusted Price-to-FCF is ranked better than
88.5% of 313 companies
in the Insurance industry
Industry Median: 11.43 vs BSP:P1DT34: 3.03

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Prudential Financial's adjusted free cash flow per share data for the three months ended in Mar. 2024 was R$36.060. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is R$96.38 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Prudential Financial Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Prudential Financial's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Prudential Financial Cyclically Adjusted Price-to-FCF Chart

Prudential Financial Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.58 2.09 2.75 2.66 2.74

Prudential Financial Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.16 2.30 2.45 2.74 2.97

Competitive Comparison of Prudential Financial's Cyclically Adjusted Price-to-FCF

For the Insurance - Life subindustry, Prudential Financial's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Prudential Financial's Cyclically Adjusted Price-to-FCF Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Prudential Financial's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Prudential Financial's Cyclically Adjusted Price-to-FCF falls into.



Prudential Financial Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Prudential Financial's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=303.90/96.38
=3.15

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Prudential Financial's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Prudential Financial's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=36.06/131.7762*131.7762
=36.060

Current CPI (Mar. 2024) = 131.7762.

Prudential Financial Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 8.559 100.560 11.216
201409 14.696 100.428 19.283
201412 23.259 99.070 30.938
201503 18.775 99.621 24.835
201506 -6.928 100.684 -9.067
201509 35.437 100.392 46.515
201512 8.945 99.792 11.812
201603 25.850 100.470 33.905
201606 27.466 101.688 35.593
201609 12.984 101.861 16.797
201612 -8.399 101.863 -10.865
201703 5.869 102.862 7.519
201706 11.559 103.349 14.738
201709 14.667 104.136 18.560
201712 17.810 104.011 22.564
201803 8.762 105.290 10.966
201806 19.269 106.317 23.883
201809 17.380 106.507 21.504
201812 51.347 105.998 63.834
201903 14.186 107.251 17.430
201906 24.402 108.070 29.755
201909 36.889 108.329 44.873
201912 20.243 108.420 24.604
202003 90.869 108.902 109.956
202006 -8.461 108.767 -10.251
202009 -4.066 109.815 -4.879
202012 -29.286 109.897 -35.117
202103 -23.294 111.754 -27.467
202106 28.023 114.631 32.214
202109 36.965 115.734 42.089
202112 24.748 117.630 27.724
202203 0.007 121.301 0.008
202206 10.118 125.017 10.665
202209 30.232 125.227 31.813
202212 -4.435 125.222 -4.667
202303 9.512 127.348 9.843
202306 8.114 128.729 8.306
202309 19.341 129.860 19.626
202312 7.485 129.419 7.621
202403 36.060 131.776 36.060

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Prudential Financial  (BSP:P1DT34) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Prudential Financial Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Prudential Financial's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Prudential Financial (BSP:P1DT34) Business Description

Traded in Other Exchanges
Address
751 Broad Street, Newark, NJ, USA, 07102
Prudential Financial is a large, diversified insurance company offering annuities, life insurance, retirement plan services, and asset management products. While it operates in a number of countries, the vast majority of revenue is generated in the United States and Japan. The company's investment management business, PGIM, contributes approximately 15% of its earnings and has over $1.5 trillion in assets under management. The U.S. businesses are responsible for about 45% of earnings and can be classified into Institutional Retirement Strategies, Individual Retirement Strategies, Group Insurance, Individual Life Insurance, and Assurance IQ. Finally, the international business segment of the company contributes approximately 40% of earnings with a strong market position in Japan.

Prudential Financial (BSP:P1DT34) Headlines

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