P/E Ratio
Higher than 43% of Financial Services sector peers
Updated 20h ago
Sector Performance
43th percentilePFG
13.2x
Sector Median
13.7x
Sector Avg
19.0x
Deep Analysis
# P/E Ratio Analysis: Principal Financial Group (PFG)
PFG trades at 13.2x earnings, meaning investors pay $13.20 for every dollar of annual profit the company generates. This valuation sits 0.9x below the Financial Services sector median of 14.1x, positioning the stock in the 41st percentile among sector peers—indicating a modest discount relative to comparable companies. The P/E ratio has remained flat at 13.2x over the last four quarters, suggesting stable earnings relative to stock price with no meaningful momentum in either direction. The below-median valuation could appeal to value-oriented investors, though the lack of upward trend suggests the market is not growing increasingly confident in PFG's earnings power. Combined with the neutral rating, this metric indicates PFG is reasonably priced but offers limited margin of safety or growth catalyst visibility.
Frequently Asked Questions
What does the P/E Ratio tell investors about PFG?
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
How is the P/E Ratio calculated?
P/E Ratio is calculated as: Price / EPS.
How does PFG's P/E Ratio compare to its sector?
PFG's P/E Ratio of 13.2x compares to a Financial Services sector median of 13.7x, placing it in the 43th percentile.
Who are PFG's closest peers by P/E Ratio?
The closest Financial Services peers by P/E Ratio include: RJF (13.8x), AIG (13.7x), BRK-B (14.4x), AFL (12.9x), JPM (14.6x).
The Formula
Price / EPS
Why It Matters
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
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13.2x
Sector Median
13.7x
Sector Avg
19.0x
How PFG's P/E Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.