Principal Financial GroupPFG -1.18%71 EV-to-FCF is 6.40 as of Jun. 25, 2026, which is 37% above its 10-year median of 4.66. GuruFocus rates PFG with a GF Score™ of 71/100 and a GF Value™ of $90.24 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 940 Asset Management companies, Principal Financial Group ranks better than 78.83% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Principal Financial Group's Enterprise Value is $23,246 Mil.
Principal Financial Group's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was $3,631 Mil. Therefore, Principal Financial Group's EV-to-FCF for today is 6.40.
The historical rank and industry rank for Principal Financial Group's EV-to-FCF or its related term are showing as below:
PFG'
s EV-to-FCF Range Over the Past 10 Years
Min: 1.37 Med: 4.66 Max: 9.84
Current: 6.4
During the past 13 years, the highest EV-to-FCF of Principal Financial Group was 9.84. The lowest was 1.37. And the median was 4.66.
PFG's EV-to-FCF is ranked better than 78.83% of 940
companies
in the Asset Management industry
Industry Median: 14.585
vs PFG: 6.40
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Principal Financial Group (NAS:PFG) EV-to-FCF Explanation
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Principal Financial Group's PE Ratio (TTM) for today is calculated as:
Principal Financial Group's share price for today is $105.44.
Principal Financial Group's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $6.970.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Principal Financial Group EV-to-FCF Related Terms
Principal Financial Group EV-to-FCF Historical Data
* 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.
For the Asset Management subindustry, Principal Financial Group's EV-to-FCF, along with its competitors' market caps and EV-to-FCF 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.
Principal Financial Group EV-to-FCF vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Principal Financial Group's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Principal Financial Group's EV-to-FCF falls into.
Principal Financial Group's current Enterprise Value is $23,246 Mil.
Principal Financial Group's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $3,631 Mil.
* 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.
Principal Financial Group (PFG) has a EV-to-FCF of 6.40 as of Jun. 25, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Principal Financial Group and its competitors. This is 37% above median its historical median of 4.66. Over the past decade, Principal Financial Group's EV-to-FCF has ranged from 1.37 to 9.84. According to the industry distribution chart, Principal Financial Group ranks #199 out of 940 companies in the Asset Management industry, placing it in the top 21.2%.
Is Principal Financial Group's EV-to-FCF too high?
Principal Financial Group's current EV-to-FCF of 6.40 is 37% above median its 10-year median of 4.66. Over the past 10 years, this metric has ranged from a low of 1.37 to a high of 9.84. The Asset Management industry median EV-to-FCF is 14.59. Principal Financial Group's value of 6.40 is 56.1% below this industry median. Based on the distribution chart, Principal Financial Group ranks #199 out of 940 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Principal Financial Group has a GF Score™ of 71/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Principal Financial Group's EV-to-FCF compare to TROW and RJF?
According to the Asset Management industry distribution chart, Principal Financial Group ranks #199 out of 940 companies for EV-to-FCF. This places Principal Financial Group in the top 21% of its industry — outperforming the majority of peers. The industry median EV-to-FCF is 14.59. Principal Financial Group's value of 6.40 is 56.1% below this benchmark. Historically, Principal Financial Group's own EV-to-FCF has ranged from 1.37 to 9.84 over the past decade. While the company's 10-year median is 4.66 vs. the industry median of 14.59, Principal Financial Group 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 EV-to-FCF for an Asset Management company?
The median EV-to-FCF among Asset Management companies is 14.59, based on 940 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Principal Financial Group's current EV-to-FCF of 6.40 is 56.1% 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 EV-to-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Principal Financial Group and its competitors. For the Asset Management industry, the median EV-to-FCF is 14.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Principal Financial Group's current EV-to-FCF is 6.40, which is 37% above median its own 10-year median of 4.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Principal Financial Group stock overvalued right now?
Based on GuruFocus' analysis, Principal Financial Group (PFG) is currently considered Modestly Overvalued. The stock's GF Value™ is $90.24, compared to a current price of $105.44 — trading 16.8% above its estimated fair value. The current EV-to-FCF is 6.40, which is 37% above median its 10-year median of 4.66 and 56.1% below the Asset Management industry median of 14.59. Principal Financial Group's overall GF Score™ is 71/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Principal Financial Group (PFG), the current EV-to-FCF is 6.40 as of Jun. 25, 2026. 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.
Is Principal Financial Group (PFG) Overvalued in 2026?
Based on GuruFocus' analysis, Principal Financial Group stock appears to be overvalued.
The current stock price of $105.44 is trading 16.8% above its estimated GF Value™ of $90.24.
GuruFocus considers Principal Financial Group to be Modestly Overvalued.
Key valuation signals for PFG:
EV-to-FCF: 6.40 (37% above median its 10-year median of 4.66)
GF Value™: $90.24 vs. price of $105.44 (16.8% above fair value)
Industry Position: 56.1% below the Asset Management median (#199 of 940)
No single metric tells the full story. See the PFG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Principal Financial Group Inc is a financial services provider. It offers various financial products and services including retirement, asset management, and workplace benefits and protection solutions to individuals and institutional clients. The company, along with its subsidiaries, operates in the following reportable segments; Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection. Maximum revenue is generated from the Retirement and Income Solutions segment which provides workplace savings and retirement solutions, banking, trust and custodial services, individual variable annuities (including RILAs), pension risk transfer, and investment services to businesses, their employees, and other individuals.
71GF Score
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