Stock fact sheet · data as of
Prudential Financial, Inc. (PRU): fair value, margin of safety and Wheel Score
Financial Services · Insurance - Life · United States · High Yield Income
Is PRU undervalued?
PRU has a margin of safety of 71%: the stock closed at 113.49 on 16 Oct 2026 against a GLS average fair value of 395.40. 7 of the 9 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
There is a wide gap between DDM (81.66) and Payback Time (1,175.74). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files PRU under High Yield Income: a dividend yield above 4%.
Nine valuation models for PRU
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 145.69 | +28% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 161.51 | +42% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 296.30 | +161% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 101.04 | -11% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 727.10 | +541% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 737.59 | +550% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 1,175.74 | +936% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 81.66 | -28% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 131.96 | +16% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -1,735.19 | -1629% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 105.56 | -7% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Prudential Financial, Inc. scores 9 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 4.0/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are moderate - ROIC 6.5%, ROE 11.0%, ROA 0.5% - with debt at 0.71 times equity and a free-cash-flow yield of 28.0%.
The dividend yield is high at 4.89% (payout ratio 51%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Retirement 59%, Group Insurance 24%, Individual Life 17% (quarter Q2 FY2026).
Institutional ownership scores 9/10, insider activity 1/10 and Congressional trading 1/10 on the GLS smart-money scales; the last recorded insider buy was on 10 Sep 2026.
| Piotroski F-score | 9 / 9 | ROIC | 6.5% |
|---|---|---|---|
| GLS Moat | 4.0 / 10 | ROE | 11.0% |
| Debt / equity | 0.71 | ROA | 0.5% |
| Free-cash-flow yield | 28.0% | Payout ratio | 51% |
| Institutions | 9 / 10 | Insiders · Congress | 1 · 1 / 10 |
Wheel Score 88: Prime
With a Wheel Score of 88, Prudential Financial, Inc. sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 25/25, Health 20/20, Moat 6/15, Premium 17/20, Stability 19/20. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.
Implied volatility is 32% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (17 of 20 points). The option chain is deep: 80,034 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 1.6M shares a day on a market cap of $39.2B, with a beta of 0.84; the Stability part of the Wheel Score gives that 19 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 71% margin of safety | |
| Health | 20 / 20 | Piotroski 9/9 | |
| Moat | 6 / 15 | moat 4.0/10 | |
| Premium | 17 / 20 | implied volatility 32% | |
| Stability | 19 / 20 | 1.6M shares/day, $39.2B cap, beta 0.84 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 3 Nov 2026 (after the close), 18 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Insurance - Life
The 12 companies below are the closest to Prudential Financial, Inc. by market cap within the Insurance - Life industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| PUK Prudential plc | 23.81 | 52.94 | +55% | 83Prime | $29.3B |
| AFL Aflac Incorporated | 118.05 | 102.40 | -15% | 61Fair | $59.2B |
| MET MetLife, Inc. | 100.27 | 162.98 | +38% | 84Prime | $63.7B |
| MFC Manulife Financial Corporation | 43.86 | 120.96 | +64% | 84Prime | $72.8B |
| UNM Unum Group | 91.46 | 83.14 | -10% | 72Good | $14.5B |
| UNMA Unum Group 6.250% JR NT58 | 20.46 | 56.18 | +64% | 39No options | $14.5B |
| GL Globe Life Inc. | 167.59 | 263.49 | +36% | 79Good | $12.9B |
| JXN Jackson Financial Inc. | 131.56 | 304.00 | +57% | 88Prime | $8.9B |
| VOYA Voya Financial, Inc. | 95.12 | 154.12 | +38% | 79Good | $8.6B |
| PRI Primerica, Inc. | 278.35 | 434.23 | +36% | 83Prime | $8.6B |
| LNC Lincoln National Corporation | 40.01 | 150.63 | +73% | 80Prime | $7.7B |
| PRH Prudential Financial, Inc. 5.95 | 20.24 | 169.97 | +88% | 39No options | $7.0B |
⚖ Compare PRU with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about PRU
Is PRU undervalued right now?
By the GLS models, yes: at 113.49 the stock is 71% below the average fair value of 395.40 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of PRU and what does it mean?
PRU scores 88 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for PRU?
395.40 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Prudential Financial, Inc. report earnings next?
The next earnings report is due on 3 Nov 2026 (after the close), 18 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does PRU have listed options, and how liquid are they?
Yes. The nightly snapshot found 574 listed contracts with 80,034 open interest across all expiries and implied volatility of 32% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.