PRU · NYQ · Financial Services
Prudential Financial, Inc.
Also onShortfallConsensus DriftCrosscheck
Implied value per share
USD 107.63
Market price
USD 118.30
Implied upside
-9.0%
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
- 9.7%
- Payout
- 70%
- Cost of equity
- 8.64%
| Line | FY26 | FY27 | FY28 | FY29 | FY30 | FY31 | FY32 | FY33 | FY34 | FY35 |
|---|---|---|---|---|---|---|---|---|---|---|
| Opening book equity | USD 32.4bn | USD 33.4bn | USD 34.3bn | USD 35.3bn | USD 36.2bn | USD 37.2bn | USD 38.2bn | USD 39.2bn | USD 40.2bn | USD 41.2bn |
| Return on equity | 9.7% | 9.7% | 9.7% | 9.7% | 9.7% | 9.7% | 9.7% | 9.7% | 9.7% | 9.7% |
| Excess return | USD 340.8m | USD 350.6m | USD 360.4m | USD 370.4m | USD 380.5m | USD 390.8m | USD 401.2m | USD 411.7m | USD 422.3m | USD 433.0m |
| Present value | USD 313.7m | USD 297.0m | USD 281.1m | USD 265.9m | USD 251.5m | USD 237.7m | USD 224.6m | USD 212.2m | USD 200.4m | USD 189.1m |
| Book equity | USD 32.4bn |
| Present value of excess returns | USD 2.5bn |
| Terminal, growing at 2.50% | USD 3.2bn |
| Equity value | USD 38.1bn |
| Per share | USD 107.63 |
Discount Rate
| Risk-free rate | 4.89% | US 10-year Treasury (^TNX), 2026-11-02 |
| Equity risk premium | 4.23% | Damodaran, January 2026 |
| Beta | 0.885 | Reported 0.828, pulled toward 1.0 (Blume) |
| Cost of equity | 8.64% | Risk-free + beta x equity risk premium |
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Yahoo Finance and RBA data. General information, not advice. Methodology.