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Prudential Financial (STU:PLL) Cyclically Adjusted Price-to-FCF : 3.02 (As of May. 26, 2024)


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

As of today (2024-05-26), Prudential Financial's current share price is €109.35. Prudential Financial's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was €36.24. Prudential Financial's Cyclically Adjusted Price-to-FCF for today is 3.02.

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

STU:PLL' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 1.15   Med: 2.93   Max: 5.03
Current: 3.02

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.

STU:PLL's Cyclically Adjusted Price-to-FCF is ranked better than
88.54% of 314 companies
in the Insurance industry
Industry Median: 11.28 vs STU:PLL: 3.02

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 €13.324. 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 €36.24 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
=109.35/36.24
=3.02

* 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)
=13.324/131.7762*131.7762
=13.324

Current CPI (Mar. 2024) = 131.7762.

Prudential Financial Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 5.634 100.560 7.383
201409 9.756 100.428 12.801
201412 14.280 99.070 18.994
201503 11.045 99.621 14.610
201506 -3.967 100.684 -5.192
201509 16.179 100.392 21.237
201512 4.232 99.792 5.588
201603 12.554 100.470 16.466
201606 14.281 101.688 18.507
201609 7.113 101.861 9.202
201612 -4.748 101.863 -6.142
201703 3.509 102.862 4.495
201706 6.244 103.349 7.961
201709 7.857 104.136 9.942
201712 9.135 104.011 11.574
201803 4.334 105.290 5.424
201806 8.748 106.317 10.843
201809 7.250 106.507 8.970
201812 23.245 105.998 28.898
201903 6.538 107.251 8.033
201906 11.202 108.070 13.659
201909 16.262 108.329 19.782
201912 8.877 108.420 10.789
202003 33.661 108.902 40.731
202006 -2.896 108.767 -3.509
202009 -1.279 109.815 -1.535
202012 -9.358 109.897 -11.221
202103 -6.945 111.754 -8.189
202106 9.251 114.631 10.635
202109 11.904 115.734 13.554
202112 7.746 117.630 8.678
202203 0.002 121.301 0.002
202206 3.793 125.017 3.998
202209 11.646 125.227 12.255
202212 -1.596 125.222 -1.680
202303 3.411 127.348 3.530
202306 3.086 128.729 3.159
202309 7.339 129.860 7.447
202312 2.802 129.419 2.853
202403 13.324 131.776 13.324

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  (STU:PLL) 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 (STU:PLL) Business Description

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 (STU:PLL) Headlines

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