Is Principal Financial Group, Inc. overvalued or undervalued?

As of 24 April 2025, the valuation grade for Principal Financial Group, Inc. has moved from attractive to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a P/E ratio of 31, a Price to Book Value of 3.04, and an EV to Sales ratio of 2.09, all of which suggest that the stock is priced higher than its fundamental value.
When compared to peers, Principal Financial's P/E ratio of 30.86 is significantly higher than BlackRock, Inc. at 23.40 and Apollo Global Management, Inc. at 21.81, both of which are also categorized as expensive. The company's recent stock performance has lagged behind the S&P 500, particularly over the past year, where it has returned -3.35% compared to the S&P 500's 10.26%. This further reinforces the assessment that Principal Financial Group, Inc. is currently overvalued.