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Prudential Financial (Prudential Financial) Cyclically Adjusted PS Ratio : 0.65 (As of Apr. 27, 2024)


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What is Prudential Financial Cyclically Adjusted PS Ratio?

As of today (2024-04-27), Prudential Financial's current share price is $110.50. Prudential Financial's Cyclically Adjusted Revenue per Share for the quarter that ended in Dec. 2023 was $170.39. Prudential Financial's Cyclically Adjusted PS Ratio for today is 0.65.

The historical rank and industry rank for Prudential Financial's Cyclically Adjusted PS Ratio or its related term are showing as below:

PRU' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 0.31   Med: 0.73   Max: 1.06
Current: 0.65

During the past years, Prudential Financial's highest Cyclically Adjusted PS Ratio was 1.06. The lowest was 0.31. And the median was 0.73.

PRU's Cyclically Adjusted PS Ratio is ranked better than
68.07% of 404 companies
in the Insurance industry
Industry Median: 0.975 vs PRU: 0.65

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 PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Prudential Financial's adjusted revenue per share data for the three months ended in Dec. 2023 was $43.083. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is $170.39 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Prudential Financial Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Prudential Financial's Cyclically Adjusted PS Ratio 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 PS Ratio Chart

Prudential Financial Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.68 0.54 0.67 0.61 0.61

Prudential Financial Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted PS Ratio 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 0.61 0.50 0.52 0.56 0.61

Competitive Comparison of Prudential Financial's Cyclically Adjusted PS Ratio

For the Insurance - Life subindustry, Prudential Financial's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio 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 PS Ratio Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Prudential Financial's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where Prudential Financial's Cyclically Adjusted PS Ratio falls into.



Prudential Financial Cyclically Adjusted PS Ratio Calculation

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

Prudential Financial's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=110.50/170.39
=0.65

* 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 Revenue per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Prudential Financial's adjusted Revenue per Share data for the three months ended in Dec. 2023 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=43.083/129.4194*129.4194
=43.083

Current CPI (Dec. 2023) = 129.4194.

Prudential Financial Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201403 27.469 99.695 35.659
201406 28.143 100.560 36.220
201409 26.529 100.428 34.187
201412 34.723 99.070 45.360
201503 33.628 99.621 43.687
201506 29.740 100.684 38.228
201509 29.555 100.392 38.101
201512 31.117 99.792 40.355
201603 31.662 100.470 40.785
201606 32.192 101.688 40.971
201609 38.139 101.861 48.457
201612 29.736 101.863 37.780
201703 31.132 102.862 39.170
201706 30.785 103.349 38.551
201709 37.487 104.136 46.589
201712 37.618 104.011 46.807
201803 31.950 105.290 39.272
201806 34.241 106.317 41.682
201809 38.022 106.507 46.202
201812 42.772 105.998 52.223
201903 36.137 107.251 43.607
201906 37.178 108.070 44.523
201909 36.977 108.329 44.176
201912 47.564 108.420 56.776
202003 33.914 108.902 40.304
202006 30.702 108.767 36.532
202009 38.844 109.815 45.779
202012 40.429 109.897 47.611
202103 42.482 111.754 49.197
202106 40.698 114.631 45.948
202109 55.838 115.734 62.441
202112 43.968 117.630 48.375
202203 31.510 121.301 33.619
202206 30.427 125.017 31.499
202209 54.420 125.227 56.242
202212 35.353 125.222 36.538
202303 46.405 127.348 47.160
202306 36.870 128.729 37.068
202309 23.183 129.860 23.104
202312 43.083 129.419 43.083

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue 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  (NYSE:PRU) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue 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 PS Ratio should give similar results to regular PS Ratio.


Prudential Financial Cyclically Adjusted PS Ratio Related Terms

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


Prudential Financial (Prudential Financial) 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.
Executives
Kenneth Tanji officer: EVP and CFO 751 BROAD STREET, 5TH FLOOR, ATTN: REGULATORY FILINGS UNIT, NEWARK NJ 07102
Timothy L Schmidt officer: Senior Vice President 751 BROAD STREET, 5TH FLOOR, ATTN: REGULATORY FILINGS UNIT, NEWARK NJ 07102
Kathleen Murphy director 751 BROAD STREET, 5TH FLOOR, ATTN: REGULATORY FILINGS UNIT, NEWARK NJ 07102
Caroline Feeney officer: Executive Vice President 751 BROAD STREET, 5TH FLOOR, ATTN: REGULATORY FILINGS UNIT, NEWARK NJ 07102
Ann M Kappler officer: EVP and General Counsel PRUDENTIAL FINANCIAL, INC., 751 BROAD STREET, 5TH FLOOR, NEWARK NJ 07102
Robert Axel officer: SVP and Controller 751 BROAD STREET, 5TH FLOOR, ATTN.: REGULATORY FILINGS UNIT, NEWARK NJ 07102
Andrew F Sullivan officer: Executive Vice President 751 BROAD STREET, 5TH FLOOR, ATTN: REGULATORY FILINGS UNIT, NEWARK NJ 07102
Nicholas C Silitch officer: Senior Vice President 751 BROAD STREET, 5TH FLR, ATTN.: REGULATORY FILINGS UNIT, NEWARK NJ 07102
Scott Sleyster officer: Senior Vice President 751 BROAD STREET, 5TH FLOOR, ATTN.: REGULATORY FILINGS UNIT, NEWARK NJ 07102
Robert Falzon officer: EVP and CFO 751 BROAD STREET, 5TH FLOOR, ATTN.: REGULATORY FILINGS UNIT, NEWARK NJ 07102
Charles F Lowrey officer: Executive Vice President 751 BROAD STREET, 5TH FLOOR, ATTN: REGULATORY FILINGS UNIT, NEWARK NJ 07102
Michael Todman director C/O TMA LIMITED, LLC, 500 RENAISSANCE DRIVE, SUITE 103B, ST. JOSEPH MI 49085
Wendy Elizabeth Jones director 2025 HAMILTON AVE, SAN JOSE CA 95125
Stacey Goodman officer: Executive Vice President C/O CIT GROUP INC., ATTN:GENERAL COUNSEL, 1 CIT DRIVE, LIVINGSTON NJ 07039
Candace Woods officer: Senior Vice President 751 BROAD STREET, 5TH FLOOR, ATTN: REGULATORY FILINGS UNIT, NEWARK NJ 07102