Is Prudential Financial, Inc. overvalued or undervalued?

As of 8 September 2025, the valuation grade for Prudential Financial, Inc. moved from very expensive to very attractive, indicating a significant improvement in its valuation outlook. The company is currently considered undervalued, especially in light of its P/E ratio of 29, which is lower than its peer Equitable Holdings, Inc. at 46.64, and its EV to Sales ratio of 0.92, suggesting a more favorable valuation compared to the industry. Additionally, the PEG ratio stands at 3.88, which, while high, reflects the growth expectations relative to its earnings.
In comparison to its peers, Prudential Financial demonstrates a more attractive valuation profile, particularly when contrasted with Equitable Holdings, which has a much higher P/E ratio. Despite recent underperformance, with a year-to-date return of -12.37% compared to the S&P 500's 12.22%, the long-term outlook remains promising, as evidenced by a 5-year return of 52.41%, albeit still trailing behind the S&P 500's 96.61%.