Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

Prudential's Relatively High Multiple May Be Justified

It may sound strange to say that Prudential Financial (NYSE:PRU) has a relatively high multiple with the stock trading at 14.3X ttm EPS, but the ~$40B firm is large enough so that its days of consistent double-digit growth are well behind it. Given that, it should not be much of a surprise then that Prudential generally trades for a multiple between 8-14X with notable exceptions in unusual periods. In light of that, PRU may look richly priced today or at least fairly valued. But that view fails to consider the positive factors, both company-specific and macro-level, that Prudential has going for it. I believe that these factors will drive EPS of $10.30 next year (FY 2015), leading to...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details