Is Prudential Financial, Inc. overvalued or undervalued?

As of 8 May 2025, Prudential Financial, Inc. has moved from a fair to expensive valuation grade, indicating that it is currently overvalued. The company's P/E ratio stands at 29, significantly higher than its peer average of approximately 28.88, while its EV to EBITDA ratio is also elevated at 260.31 compared to the industry benchmark. Additionally, the PEG ratio of 3.88 suggests that the stock is priced for growth that may not be sustainable.
When comparing Prudential to its peers, such as MetLife, which has a P/E ratio of around 8.5, it becomes evident that Prudential is trading at a premium. Furthermore, the company's dividend yield of 284.12% appears misleading, as it does not reflect the underlying financial health indicated by a ROE of 7.68%. Recent stock performance shows that Prudential has underperformed the S&P 500 over the past year, with a return of -10.30% compared to the index's 10.26%, reinforcing the notion that the stock may be overvalued at its current price of 105.60.