PRU - Prudential Financial, Inc.
Price:
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CONSENSUS:
Hold
DETAILS
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PRICE TARGET:
$101.38
DETAILS
HIGH:
$120.00
LOW:
$87.00
MEDIAN:
$100.50
CONSENSUS:
$101.38
DOWNSIDE:
1.34%
AlphaVal
Deterministic, archetype-aware fair value
Banks, Insurers & Asset Managers
85% confidence
Primary model: P/Tangible Book × ROE Quality
Adjust Assumptions
39.6%
9.0%
Key Value Driver
ROTCE (39.6%) vs. cost of equity (9.0%)
Implied Market Multiple
3.95x
Plain-Language Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $101.38 from 37 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $169.49 per share.
Warnings
Traditional cash flow models don't work well for banks — lending activity distorts how much cash the business actually generates.
Common valuation shortcuts don't apply here — for banks, interest payments are a core business cost, not overhead.
Dividend-based valuation: $98.08 (51% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Wall Street's average price target is $101.38 (from 37 analysts). Our estimate is 96% above the consensus -- consider that gap carefully.
Key Risks
- Book value quality matters as much as level — check loan loss reserves
- Interest rate sensitivity creates non-linear earnings surprises
- Insurance reserving is actuarial, not financial — errors emerge slowly