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Principal Financial Group, Inc.

PFG Financial Asset Management

Principal Financial Group, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $15.6 billion, down 3.11% from fiscal 2024.

Revenue
+25.4%
EPS
+190.8%
Free cash flow
+51.0%
Total debt
+14.4%

Quarter to September 2026, against a year earlier

112.20 0.62 −0.55%
Market cap
$24.0B
P/E
12.6×
Fwd P/E
12.2×
Dividend yield
2.88%
F-score
5/9
Altman Z
n/a
Beneish M
n/a
Dividend safety
n/a
Overview Business Profile Earnings & Analysis
Financials
Income Statement Balance Sheet Cash Flow Metrics & Ratios
Valuation Filings

Principal Financial Group, Inc. (PFG) valuation and DCF model

What the price implies · reverse DCF

At $112.20 the price implies 13.1% a year of dividend growth, at a 9.0% cost of equity.

The dividend a share grew 7.4% a year over the last ten years, 6.4% over the last five. The price asks for about twice its ten-year rate. Return on equity averaged 14.2% over ten years; the price implies 15.7% for good.

In December 2017 the price assumed 14.7% a year; Principal Financial Group, Inc. went on to grow the dividend a share 1.2% a year to FY2025.

Price implies
13.1%
Last 5 years, reported
6.4%
Last 10 years, reported
7.4%

The headline discounts the last twelve months’ the dividend a share at 9.0% for ten years and grows it 2.5% a year after that, the same for every company, so the figure compares across the market (how a reverse DCF works).

The other way round · DCF
The price needs
13.1% a year for ten years
$112.20
today’s price
Its base case
7.4% a year for five years, then 4.5%
$66.00
41.2% below today’s price

Both are growth in the dividend a share, discounted at 9.0%, with 2.5% a year after year ten.

Base case on its own ten-year record Principal Financial Group, Inc.’s own growth, carried forward

Its assumptions

Powerpack lets you start from a scenario and type over any of them.

The base case’s inputs, which Powerpack lets you change
1 · Dividends
the four quarters to September 2026, from the 10-Q and 10-K filings

Yearly growth in the dividend. It usually slows as the company matures.

Today’s price implies the dividend a share growing 13.1% a year for ten years.

2 · Rates

Cost of equity is the yearly return shareholders require, typically 8–11%. Terminal growth is growth forever after year 10, usually near long-run inflation, 2–3%.

3 · Per share

The model is a share’s own: no debt to take off and no shares to divide among.

Advanced inputs

Against Principal Financial Group, Inc.’s own cost of capital: risk-free 4.3% + beta 0.89 × equity premium 4.5% = 8.3% cost of equity; weighted, 8.3%.

Use 8.3%
Base case value per share $66.00 ten years discounted, and what follows
Current price $112.20 market price per share
Below today’s price 41.2% downside at the base case’s assumptions

How we got there$28.28 10 years of dividends+$37.72 terminal value=$66.00 per share

Valuation against its own history

Today’s multiple against its 5- and 10-year averages and the industry median (Asset Management).

Multiple Current 5Y avg 10Y avg vs 10Y avg Industry median vs industry 10Y range
P/E 12.59× 15.25× 12.62× 0% below 13.38× 6% below
P/FCF — 4.98× 4.63× — 7.79× —
P/B 2.04× 1.83× 1.49× 37% above 0.91× 124% above
EV/EBITDA — 12.50× 10.33× — 3.38× —
EV/Sales — 1.26× 1.22× — 3.90× —
P/E P/FCF P/B EV/EBITDA EV/Sales
0.93×1.11×1.30×1.48×10Y avg 1.22×2016201720182019202020212022202320242025

EV/Sales has no reading today; its 10-year average is 1.22×.

Every growth rate on this page is the business’s — its cash flow, FFO or dividend — never its share price’s. A discounted-cash-flow model is only as good as its assumptions. Figures from the 10-K and 10-Q filings. Not investment advice.