Prudential FinancialMEX:PRU 58 Return-on-Tangible-Equity is 7.69% as of Mar. 2026, which is 22% below its 10-year median of 9.86. GuruFocus rates MEX:PRU with a GF Score™ of 58/100 and a GF Value™ of MXN1,796.65 (Fairly Valued). The stock has 3 warning signs investors should review. Among 500 Insurance companies, Prudential Financial ranks worse than 57.2% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Prudential Financial's annualized net income for the quarter that ended in Mar. 2026 was MXN43,062 Mil. Prudential Financial's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN559,990 Mil. Therefore, Prudential Financial's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 7.69%.
The historical rank and industry rank for Prudential Financial's Return-on-Tangible-Equity or its related term are showing as below:
MEX:PRU'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -3.77 Med: 9.86 Max: 16.35
Current: 11.3
During the past 13 years, Prudential Financial's highest Return-on-Tangible-Equity was 16.35%. The lowest was -3.77%. And the median was 9.86%.
MEX:PRU's Return-on-Tangible-Equity is ranked worse than 57.2% of 500
companies
in the Insurance industry
Industry Median: 13.515
vs MEX:PRU: 11.30
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Prudential Financial Return-on-Tangible-Equity Related Terms
Prudential Financial Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Prudential Financial's Return-on-Tangible-Equity 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.
MEX:PRU vs MET, UNM, AFL: Return-on-Tangible-Equity Comparison
For the Insurance - Life subindustry, Prudential Financial's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Insurance Industry
For the Insurance industry and Financial Services sector, Prudential Financial's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Prudential Financial's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 7.69% mean?
Prudential Financial (MEX:PRU) has a Return-on-Tangible-Equity of 7.69% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Prudential Financial and its competitors. This is 22% below median its historical median of 9.86. According to the industry distribution chart, Prudential Financial ranks #286 out of 500 companies in the Insurance industry, placing it in the top 57.2%.
Is Prudential Financial's Return-on-Tangible-Equity too high?
Prudential Financial's current Return-on-Tangible-Equity of 7.69% is 22% below median its 10-year median of 9.86. The Insurance industry median Return-on-Tangible-Equity is 13.52. Prudential Financial's value of 7.69% is 43.1% below this industry median. Based on the distribution chart, Prudential Financial ranks #286 out of 500 companies in the Insurance industry, which is below the industry midpoint. Overall, Prudential Financial has a GF Score™ of 58/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Prudential Financial's Return-on-Tangible-Equity compare to MET and UNM?
According to the Insurance industry distribution chart, Prudential Financial ranks #286 out of 500 companies for Return-on-Tangible-Equity. This places Prudential Financial in the lower half of its industry. The industry median Return-on-Tangible-Equity is 13.52. Prudential Financial's value of 7.69% is 43.1% below this benchmark. While the company's 10-year median is 9.86 vs. the industry median of 13.52, Prudential Financial 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 Return-on-Tangible-Equity for an Insurance company?
The median Return-on-Tangible-Equity among Insurance companies is 13.52, based on 500 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Prudential Financial's current Return-on-Tangible-Equity of 7.69% is 43.1% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Prudential Financial and its competitors. For the Insurance industry, the median Return-on-Tangible-Equity is 13.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prudential Financial's current Return-on-Tangible-Equity is 7.69%, which is 22% below median its own 10-year median of 9.86. 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 (MEX:PRU) is currently considered Fairly Valued. The stock's GF Value™ is MXN1,796.65, compared to a current price of MXN1,845.00 — trading 2.7% above its estimated fair value. The current Return-on-Tangible-Equity is 7.69%, which is 22% below median its 10-year median of 9.86 and 43.1% below the Insurance industry median of 13.52. Prudential Financial's overall GF Score™ is 58/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Prudential Financial (MEX:PRU), the current Return-on-Tangible-Equity is 7.69% 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 (MEX:PRU) Overvalued in 2026?
Based on GuruFocus' analysis, Prudential Financial stock appears to be overvalued.
The current stock price of MXN1,845.00 is trading 2.7% above its estimated GF Value™ of MXN1,796.65.
GuruFocus considers Prudential Financial to be Fairly Valued.
Key valuation signals for MEX:PRU:
Return-on-Tangible-Equity: 7.69% (22% below median its 10-year median of 9.86)
GF Value™: MXN1,796.65 vs. price of MXN1,845.00 (2.7% above fair value)
Industry Position: 43.1% below the Insurance median (#286 of 500)
No single metric tells the full story. See the MEX:PRU 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.
58GF Score
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