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PrudentialFRA:PRU -0.96%39 Debt-to-EBITDA is 0.79 as of Dec. 2025, which is 68% below its 10-year median of 2.47. GuruFocus rates FRA:PRU with a GF Score™ of 39/100. The stock has 4 warning signs investors should review. Among 320 Insurance companies, Prudential ranks better than 55.94% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Prudential's Debt-to-EBITDA or its related term are showing as below:
FRA:PRU'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -11.46 Med: 2.47 Max: 4.02
Current: 1.04
During the past 13 years, the highest Debt-to-EBITDA Ratio of Prudential was 4.02. The lowest was -11.46. And the median was 2.47.
FRA:PRU's Debt-to-EBITDA is ranked better than 55.94% of 320
companies
in the Insurance industry
Industry Median: 1.175
vs FRA:PRU: 1.04
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Prudential Debt-to-EBITDA Related Terms
Prudential Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Prudential's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:PRU vs AFL, MET, PRU: Debt-to-EBITDA Comparison
For the Insurance - Life subindustry, Prudential's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Prudential Debt-to-EBITDA vs Insurance Industry
For the Insurance industry and Financial Services sector, Prudential's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Prudential's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is two times the quarterly (Dec. 2025) EBITDA data.
Prudential (FRA:PRU) has a Debt-to-EBITDA of 0.79 as of Dec. 2025. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Prudential. This is 68% below median its historical median of 2.47. According to the industry distribution chart, Prudential ranks #141 out of 320 companies in the Insurance industry, placing it in the top 44.1%.
Is Prudential's Debt-to-EBITDA too high?
Prudential's current Debt-to-EBITDA of 0.79 is 68% below median its 10-year median of 2.47. The Insurance industry median Debt-to-EBITDA is 1.18. Prudential's value of 0.79 is 32.8% below this industry median. Based on the distribution chart, Prudential ranks #141 out of 320 companies in the Insurance industry, which is above the industry midpoint. Overall, Prudential has a GF Score™ of 39/100, reflecting its overall financial health beyond just this single metric.
How does Prudential's Debt-to-EBITDA compare to AFL and MET?
According to the Insurance industry distribution chart, Prudential ranks #141 out of 320 companies for Debt-to-EBITDA. This puts Prudential in the upper half of its industry. The industry median Debt-to-EBITDA is 1.18. Prudential's value of 0.79 is 32.8% below this benchmark. While the company's 10-year median is 2.47 vs. the industry median of 1.18, Prudential has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Insurance company?
The median Debt-to-EBITDA among Insurance companies is 1.18, based on 320 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Prudential's current Debt-to-EBITDA of 0.79 is 32.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Prudential. For the Insurance industry, the median Debt-to-EBITDA is 1.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prudential's current Debt-to-EBITDA is 0.79, which is 68% below median its own 10-year median of 2.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prudential stock overvalued right now?
Prudential (FRA:PRU) has a current Debt-to-EBITDA of 0.79. The current Debt-to-EBITDA is 0.79, which is 68% below median its 10-year median of 2.47 and 32.8% below the Insurance industry median of 1.18. Prudential's overall GF Score™ is 39/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Prudential (FRA:PRU), the current Debt-to-EBITDA is 0.79 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Originally established in 1848 as the Prudential Mutual Assurance, Investment, and Loan Association, Prudential has changed a lot since. Set up to sell life insurance and loans to the middle class, the company subsequently diversified into Europe and then North America with the purchase of Jackson National Life around 1985. During its time as owner of Jackson, Prudential focused on building a simple chassis-style product portfolio that allowed customers to choose from a variety of add-ons. The company also became renowned for its focus on building the internal capabilities required to support its strong product offerings, including compelling technology and a large well-trained wholesale salesforce.
39GF Score
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