Read This to Understand Principal Financial Stock

By Naomi Wentworth • Tuesday, January 31 12:01 • Permanent Link

Today we're going to take a closer look at large-cap Financial Services company Principal Financial, whose shares are currently trading at $92.44. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!

Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. The company belongs to the Financial Services sector, which has an average price to earnings (P/E) ratio of 13.34 and an average price to book (P/B) ratio of 1.95. In contrast, Principal Financial has a trailing 12 month P/E ratio of 4.5 and a P/B ratio of 2.4.

Principal Financial's PEG ratio is 2.25, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.