Is Prudential PLC ADR (PUK) overvalued?
On Equity Rank's model estimate, PUK trades close to its fair value (0% above it). Prudential PLC ADR (PUK) last closed at $24.76; the multi-method model fair value is $24.77.
| Price | Model fair value | Price vs model |
|---|---|---|
| $24.76 | $24.77 | 0% above |
What the answer rests on
- 4 of 10 valuation methods put PUK's value above its price and 6 put it below, so the methods disagree.
- To justify today's price, PUK's free cash flow would need to grow about 6.3% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 27.7% a year.
- PUK trades at 9.3 times its last year's earnings, against a median of 13.1 for 75 profitable Insurance companies.
- Over the past year the price sat below the model fair value on 81% of trading days. The gap ranged from 19% below to 7% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind PUK's fair value · What prices assume · Other companies