Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
EBIT
by its Interest Expense. Prudential Financial's
EBIT
for the
three
months ended in Mar. 2026 was €1,100 Mil. Prudential Financial's Interest Expense for the
three
months ended in Mar. 2026 was €-466 Mil.
Prudential Financial's interest coverage for the quarter that ended in Mar. 2026 was 2.36.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Prudential Financial's Interest Coverage or its related term are showing as below:
STU:PLL'
s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 2.36
Current: 2.36
STU:PLL's Interest Coverage is ranked worse than 90.31% of 351
companies
in the Insurance industry
Industry Median: 16.23
vs STU:PLL: 2.36
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Prudential Financial Interest Coverage Related Terms
Prudential Financial Interest Coverage Historical Data
* Premium members only.
The historical data trend for Prudential Financial's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
STU:PLL vs MET, UNM, AFL: Interest Coverage Comparison
For the Insurance - Life subindustry, Prudential Financial's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Financial Interest Coverage vs Insurance Industry
For the Insurance industry and Financial Services sector, Prudential Financial's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Prudential Financial's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Prudential Financial (STU:PLL) has a Interest Coverage of 2.36 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Prudential Financial and its competitors. According to the industry distribution chart, Prudential Financial ranks #317 out of 351 companies in the Insurance industry, placing it in the top 90.3%.
Is Prudential Financial's Interest Coverage too high?
Prudential Financial's current Interest Coverage is 2.36. The Insurance industry median Interest Coverage is 16.23. Prudential Financial's value of 2.36 is 85.5% below this industry median. Based on the distribution chart, Prudential Financial ranks #317 out of 351 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Prudential Financial has a GF Score™ of 60/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Prudential Financial's Interest Coverage compare to MET and UNM?
According to the Insurance industry distribution chart, Prudential Financial ranks #317 out of 351 companies for Interest Coverage. This places Prudential Financial in the lower half of its industry. The industry median Interest Coverage is 16.23. Prudential Financial's value of 2.36 is 85.5% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Insurance company?
The median Interest Coverage among Insurance companies is 16.23, based on 351 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Prudential Financial's current Interest Coverage of 2.36 is 85.5% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Prudential Financial and its competitors. For the Insurance industry, the median Interest Coverage is 16.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prudential Financial's current Interest Coverage is 2.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prudential Financial stock overvalued right now?
Based on GuruFocus' analysis, Prudential Financial (STU:PLL) is currently considered Fairly Valued. The stock's GF Value™ is €96.74, compared to a current price of €93.96 — trading 2.9% below its estimated fair value. The current Interest Coverage is 2.36 and 85.5% below the Insurance industry median of 16.23. Prudential Financial's overall GF Score™ is 60/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Prudential Financial (STU:PLL), the current Interest Coverage is 2.36 as of Mar. 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 Prudential Financial (STU:PLL) Overvalued in 2026?
Based on GuruFocus' analysis, Prudential Financial stock appears to be undervalued.
The current stock price of €93.96 is trading 2.9% below its estimated GF Value™ of €96.74.
GuruFocus considers Prudential Financial to be Fairly Valued.
Key valuation signals for STU:PLL:
Interest Coverage: 2.36
GF Value™: €96.74 vs. price of €93.96 (2.9% below fair value)
Industry Position: 85.5% below the Insurance median (#317 of 351)
No single metric tells the full story. See the STU:PLL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Prudential Financial is one of the largest US life insurers, offering annuities, life insurance, and asset-management products. The United States and Japan are its two largest markets. Its US business contributed about 50% of adjusted 2025 earnings and includes institutional retirement (mostly pension risk transfer), individual retirement (annuities), group insurance, and individual life insurance. Its international business represented about 39% of adjusted earnings, with a strong market position in Japan, and the firm also has a presence in emerging markets like Brazil. The company's investment management business, PGIM, contributed approximately 11% of its 2025 adjusted earnings. PGIM had around $1.47 trillion in assets under management at the end of fourth-quarter 2025.
60GF Score
Get the complete analysis for STU:PLL
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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