It's been a great afternoon session for Prudential Public investors, who saw their shares rise 4.2% to a price of $30.57 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.
Prudential plc, through its subsidiaries, provides life and health insurance, and retirement and asset management solutions to individuals in Asia, and Africa. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 14.34 and an average price to book (P/B) ratio of 1.57. In contrast, Prudential Public has a trailing 12 month P/E ratio of 41.9 and a P/B ratio of 9.9.
P/B ratios are calculated by dividing the company's market value by its equity's book value. Equity refers to all of the company's assets minus its liabilities. Traditionally, a P/B ratio of around 1 shows that a company is fairly valued, but owing to consistently higher valuations in the modern era, investors generally compare against sector averages.
Prudential Public has moved 16.9% over the last year compared to 0.1% for the S&P 500 — a difference of 17.0%. Prudential Public has a 52 week high of $34.37 and a 52 week low of $18.2.
