What Is PFG Fair Value?
Principal Financial Group (PFG) fair value estimate using multiple valuation models, updated daily.
As of October 14, 2026, Principal Financial Group (PFG) has a composite fair value estimate of $131.71 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $107.64, suggesting the stock is undervalued by 22.4%.
Data as of October 14, 2026 (today)
Composite Fair Value
Undervalued4 of 4 models$131.71
vs. current price of $107.64(+22.4%)
How Is PFG Fair Value Calculated?
Four independent models estimate what PFG is worth. Each uses different inputs and assumptions. The composite blends them by weight.
PFG Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
35% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$151.66
+40.9%Undervalued
Inputs used
DDM (Dividend Discount Model)
15% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$99.06
-8.0%Fair Value
Inputs used
PFG Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
25% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$109.71
+1.9%Fair Value
Inputs used
PEG (Price/Earnings to Growth)
25% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$107.89
+0.2%Fair Value
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $107.64 is 40.9% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $1.18B | $1.09B |
| Year 2 | $1.31B | $1.12B |
| Year 3 | $1.46B | $1.15B |
| Year 4 | $1.63B | $1.18B |
| Year 5 | $1.81B | $1.21B |
| Year 6 | $2.02B | $1.24B |
| Year 7 | $2.25B | $1.28B |
| Year 8 | $2.51B | $1.31B |
| Year 9 | $2.79B | $1.35B |
| Year 10 | $3.11B | $1.39B |
| Terminal Value | $53.98B | $24.07B |
What Are PFG's Key Financial Metrics?
Earnings & Growth
Current Price
$107.64
EPS (TTM)
$7.02
Forward P/E
10.5
Profit Margin
9.9%
Cash & Balance Sheet
Free Cash Flow
1.1B
EBITDA
2.2B
Book Value
$56.57
Total Debt
4.6B
What Do Analysts Say About PFG?
Low
$86.00
Average
$111.17
High
$128.00
Upside
+3.3%
PFG Fair Value FAQ
What is the fair value of PFG?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), PFG's estimated fair value is $131.71. The stock is currently trading at $107.64, which makes it undervalued by our analysis.
How is PFG's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is PFG overvalued or undervalued?
Based on our analysis, PFG is undervalued. The current price of $107.64 is 22.4% below our estimated fair value of $131.71.
What do Wall Street analysts say about PFG?
12 analysts cover Principal Financial Group with a consensus rating of "Hold." The average price target is $111.17, ranging from $86.00 to $128.00. This implies 3.3% upside from the current price.