Prudential Financial's Share Price: A Slight Negative Correction Is Expected In March-April
By Ivan Kitov:Here we model the evolution of Prudential Financial (PRU) stock price. Prudential is a company from financial sector which provides provides various financial products and services.The model has been obtained using our concept of share pricing as a decomposition of a share price into a weighted sum of two consumer price indices. The intuition is clear - there is a set of goods and services which any company produces and this set defines the share price evolution of a given company relative to other companies. These other companies are also driven by prices for some goods and services. Hence, for a given company one needs two defining sets of goods and services to estimate its relative pricing power - one related and one as an independent reference. Thus, the relevant stock price can be defined by two CPIs which include corresponding goods and services. Originally, we addressed the PRU modelComplete Story »
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