PFG · NMS · Financial Services
Principal Financial Group, Inc.
Also onShortfallConsensus DriftCrosscheck
Implied value per share
USD 69.61
Market price
USD 112.81
Implied upside
-38.3%
10-year forecast · Excess returns over book equity · Base case · Price 2026-11-02 · Accounts to 2025-12-31
NoteA financial, valued on excess returns over book equity.
Excess Returns
- Return on equity
- 10.7%
- Payout
- 58%
- Cost of equity
- 8.80%
| Line | FY26 | FY27 | FY28 | FY29 | FY30 | FY31 | FY32 | FY33 | FY34 | FY35 |
|---|---|---|---|---|---|---|---|---|---|---|
| Opening book equity | USD 11.9bn | USD 12.4bn | USD 12.9bn | USD 13.4bn | USD 13.9bn | USD 14.4bn | USD 14.9bn | USD 15.3bn | USD 15.8bn | USD 16.2bn |
| Return on equity | 10.7% | 10.7% | 10.7% | 10.7% | 10.7% | 10.7% | 10.7% | 10.7% | 10.7% | 10.7% |
| Excess return | USD 224.5m | USD 234.2m | USD 243.8m | USD 253.3m | USD 262.7m | USD 272.0m | USD 281.0m | USD 289.7m | USD 298.1m | USD 306.1m |
| Present value | USD 206.3m | USD 197.8m | USD 189.3m | USD 180.8m | USD 172.3m | USD 163.9m | USD 155.7m | USD 147.5m | USD 139.5m | USD 131.7m |
| Book equity | USD 11.9bn |
| Present value of excess returns | USD 1.7bn |
| Terminal, growing at 2.50% | USD 2.1bn |
| Equity value | USD 15.7bn |
| Per share | USD 69.61 |
Discount Rate
| Risk-free rate | 4.89% | US 10-year Treasury (^TNX), 2026-11-02 |
| Equity risk premium | 4.23% | Damodaran, January 2026 |
| Beta | 0.924 | Reported 0.886, pulled toward 1.0 (Blume) |
| Cost of equity | 8.80% | Risk-free + beta x equity risk premium |
Download as Excel
Live formulas, not pasted numbers - edit a driver and the workbook reprices.
Yahoo Finance and RBA data. General information, not advice. Methodology.