Prudential Plc Valuation

PRU Stock  EUR 8.75  0.25  2.94%   
At this time, the company appears to be fairly valued. Prudential plc holds a recent Real Value of €8.7 per share. The prevailing price of the company is €8.75. Our model determines the value of Prudential plc from analyzing the company fundamentals such as Shares Outstanding of 2.75 B, operating margin of 0.97 %, and Return On Equity of 0.0769 as well as examining its technical indicators and probability of bankruptcy. In general, most investors support locking in undervalued entities and disposing overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
Fairly Valued
Today
8.75
Please note that Prudential Plc's price fluctuation is not too volatile at this time. Calculation of the real value of Prudential plc is based on 3 months time horizon. Increasing Prudential Plc's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Prudential plc is useful when determining the fair value of the Prudential stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Prudential Plc. Since Prudential Plc is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Prudential Stock. However, Prudential Plc's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  8.75 Real  8.7 Hype  8.5 Naive  8.51
The real value of Prudential Stock, also known as its intrinsic value, is the underlying worth of Prudential plc Company, which is reflected in its stock price. It is based on Prudential Plc's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Prudential Plc's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Prudential Plc's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
8.70
Real Value
10.83
Upside
Estimating the potential upside or downside of Prudential plc helps investors to forecast how Prudential stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Prudential Plc more accurately as focusing exclusively on Prudential Plc's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
7.978.529.06
Details
Hype
Prediction
LowEstimatedHigh
6.378.5010.63
Details
Naive
Forecast
LowNext ValueHigh
6.378.5110.64
Details

Prudential Plc Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Prudential Plc's current stock value. Our valuation model uses many indicators to compare Prudential Plc value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Prudential Plc competition to find correlations between indicators driving Prudential Plc's intrinsic value. More Info.
Prudential plc is regarded fourth in price to earning category among related companies. It is regarded third in price to book category among related companies fabricating about  0.14  of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Prudential plc is roughly  7.18 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Prudential Plc by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Prudential Plc's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Prudential Plc's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Prudential Plc's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Prudential Plc and how it compares across the competition.

About Prudential Plc Valuation

The stock valuation mechanism determines the current worth of Prudential plc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Prudential plc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Prudential plc based exclusively on its fundamental and basic technical indicators. By analyzing Prudential Plc's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Prudential Plc's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Prudential Plc. We calculate exposure to Prudential Plc's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Prudential Plc's related companies.
Prudential plc, through its subsidiaries, provides a range of retail financial products and services, and asset management services in Asia, the United States, the United Kingdom, Europe, and Africa. The company was founded in 1848 and is based in London, the United Kingdom. PRUDENTIAL PLC is traded on Frankfurt Stock Exchange in Germany.

8 Steps to conduct Prudential Plc's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Prudential Plc's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Prudential Plc's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Prudential Plc's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Prudential Plc's revenue streams: Identify Prudential Plc's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Prudential Plc's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Prudential Plc's growth potential: Evaluate Prudential Plc's management, business model, and growth potential.
  • Determine Prudential Plc's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Prudential Plc's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Prudential plc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors.
You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

Complementary Tools for Prudential Stock analysis

When running Prudential Plc's price analysis, check to measure Prudential Plc's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Prudential Plc is operating at the current time. Most of Prudential Plc's value examination focuses on studying past and present price action to predict the probability of Prudential Plc's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Prudential Plc's price. Additionally, you may evaluate how the addition of Prudential Plc to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Prudential Plc's value and its price as these two are different measures arrived at by different means. Investors typically determine if Prudential Plc is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Prudential Plc's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.