Is Prudential expensive at 1454p?

Prudential (LON:PRU) is a £38,478m in the Life & Health Insurance industry. Its insurance operations include Asia, the United States (Jackson National Life Insurance Company (Jackson)) and the United Kingdom, while its asset management operations include Eastspring Investments, M&G and Prudential Capital.

Right now the Prudential share price is on the expensive side from a factor perspective, based on its Value Rank of 37. Let's see why this is.

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A closer look at Prudential's Value Rank

We can see by using Prudential’s StockReport that the group has a:

• Rolling price to book value of 1.96,

• Trailing twelve month price to earnings ratio of 21.4

• Trailing twelve month price to free cashflow of 60.2

• Rolling dividend yield of 3.48%

• Trailing twelve-month price to sales ratio of 0.75

This combination of financial traits suggests that Prudential stock is toward the more expensive end of the market. Being expensive is not the end of the world, of course - but it does help to have favourable exposures to other factors to justify the share price premium.

Studies indicate that combining factors such as Value, Quality and Momentum is a more effective way of outperforming the market over longer time frames. That's why we have constructed our StockReports to give an instant impression of how well exposed Prudential (LON:PRU) is to these three factors. We go into greater detail on factor investing in this video.

Stockopedia helps you to identify return-enhancing factors such as Quality, Value and Momentum by analysing thousands of data points every day. To find out more about you find investment opportunities and analyse your portfolios then take one of our two-week free trials and have a look around.