PrudentialThe price of shares (LSE: PRU) dropped by 16% compared to a maximum of 28 March 12-month-old 8.47 £.

In my opinion, this loss had little to do with the specificity of the company. Instead, it was asked that he came to the announcement of the 2nd April tariffs and the consequences.

Therefore, there may be a great time to buy great shares at a great price. But that may not be.

The answer depends on how many values ​​have shares and whether the person’s portfolio requires the requirements of the person.

Relative valuations with peers

Prudential is currently trading in price to a profit of 10.4. It is a lower group of global insurance and investment companies, which is on average 15.5. These companies make up Metlim at 11.6, Manulife at 13.9, Allianz at the age of 14 and Aviva at 15.5.

So Prudential looks underestimated for this agent.

The same applies to his price ratio 1.4 to the book compared to the average competitors of 1.8.

However, it is overstated in terms of price sales, trading at 1.9 compared to a peer average of 1.

This is in the case of contrasting valuations in which I believe that the apply of future cash flows is particularly helpful. In the case of Prudential, the analysis of discounted cash flows shows that the shares are underestimated at the current price of 7.14 GBP.

Therefore, the fair value of shares is theoretically 20.40 GBP, although market whims can push it lower or higher.

In miniature, I think that there is great value in Prudential actions.

Looking deeper at the business

After establishing basic technical underestimation, then I am immersed in the company to see what it looks like.

In my opinion, intensive competition in the insurance and investment sector is a long risk for the company. This may squeeze margins and sometimes reduce profits.

The miniature risk applies to the potential global economic recession, which can cause customers to close their bills from Prudential. According to various market sources, the chance for such economic cramps increased from about 40% to about 60%.

After saying, the results of 2024 published on March 20 showed a corrected operational profit by 10% year a year to USD 3.129 billion (GBP 2.42 billion).

In 2025, Prudential forecasts a 10% escalate in novel business profit and basic profits per share.

The forecasts of consensus analysts are even more sanguine with 11.6% escalate in earnings every year to the end of 2027.

Will I buy shares?

I have several other resources in the same sector that I am very content with. These are Phoenix Group HoldingsIN M & GAND Legal and general.

All three forecast that a higher annual escalate in profits than Prudential – Phoenix Group is 91.6%, 42.4%M&G and 28.8%Legal & General.

And M&G is also slightly more underrated than prudential – by 67% below its fair value.

All three also have much higher dividend profitability than a modest 2.5%Prudential. M&G currently gives 11.6%, Phoenix group 10.7%and legal and general 9.9%.

Therefore, although Prudential shares look like an opportunity, they are not convincing enough for me to buy.