Using the industry peer median P/E multiple (trailing + forward), Principal Financial Group, Inc. (PFG) has a fair value of $98.76 based on 4 comparable companies in the Insurance - Diversified industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Principal Financial Group, Inc.PFG | 20,101 | 17.0x | 10.7x |
| Regions Financial CorporationRF | 22,461 | 11.2x | 12.7x |
| Loews CorporationL | 22,121 | 13.4x | 30.2x |
| KeyCorpKEY | 21,679 | 13.1x | 19.5x |
| Everest Re Group, Ltd.EG | 13,082 | 8.6x | 9.9x |
| Industry Median | 12.1x | 16.1x | |
| (*) Profit after tax | 1,185 | 1,873 | |
| Equity Value | 14,384 | 30,196 | |
| (/) Outstanding shares | 226 | 226 | |
| Fair Price | $64 | $134 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.