Principal Financial Group (Principal Financial Group) GF Value Rank : 5 (As of May. 02, 2024)

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What is Principal Financial Group GF Value Rank?

Principal Financial Group has the GF Value Rank of 5.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Principal Financial Group's GF Value Rank

For the Asset Management subindustry, Principal Financial Group's GF Value Rank, along with its competitors' market caps and GF Value Rank 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.

Principal Financial Group's GF Value Rank Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Principal Financial Group's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Principal Financial Group's GF Value Rank falls into.

Principal Financial Group GF Value Rank Related Terms

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Principal Financial Group (Principal Financial Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Principal Financial Group Inc (NAS:PFG) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

PG4:Germany

Address

711 High Street, Des Moines, IA, USA, 50392

Website

https://www.principal.com

Principal Financial Group Inc is a leader in Global investment management offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement, asset management and insurance through our diverse family of financial services companies. It operates in four business segments that are Retirement and Income Solutions, Principal Global Investors, Principal International, and United States Insurance Solutions. The company receives maximum revenue in the form of premiums.

Executives

Luis E. Valdes	officer: Executive Chairman, Latam	711 HIGH STREET, DES MOINES IA 50392-0300
Sandra L Helton	director	711 HIGH STREET, DES MOINES IA 50392-0300
Wee Yee Cheong	officer: EVP, Principal Asia	711 HIGH STREET, DES MOINES IA 50392
Roberto Walker	officer: EVP, Principal Latin American	711 HIGH ST., DES MOINES IA 50392
Renee V. Schaaf	officer: President - RIS	711 HIGH STREET, DES MOINES IA 50392
Natalie Lamarque	officer: EVP, General Counsel, and Secr	711 HIGH STREET, DES MOINES IA 50392
H Elizabeth Mitchell	director	PLATINUM UNDERWRITERS REINSURANCE, INC., 2 WORLD FINANCIAL CENTER, SUITE 2300, NEW YORK NY 10281
Jonathan Auerbach	director	C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Claudio Muruzabal	director	711 HIGH STREET, DES MOINES IA 50392
Maliz E Beams	director	C/O PORT FINANCIAL CORP, 1380 SOLDIERS FIELD RD, BRIGHTON MA 02135
Alfredo Rivera	director	THE COCA-COLA COMPANY, ONE COCA-COLA PLAZA, ATLANTA GA 30313
Scott Mills	director	1515 BROADWAY, NEW YORK NY 10036
Clare Stack Richer	director	BAIN CAPITAL, LP, 200 CLARENDON STREET, BOSTON MA 02116
Diane C Nordin	director	711 HIGH ST., DES MOINES IA 50392
Roger C Hochschild	director	2500 LAKE COOK ROAD, RIVERWOODS IL 60015