Sonali Life Insurance Valuation

Q: What is the Fair Price of SONALILIFE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SONALILIFE (BDT52.9) is trading below our estimate of [[fair value]] (BDT461.95)

Is SONALILIFE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SONALILIFE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SONALILIFE (BDT52.9) is trading below our estimate of fair value (BDT461.95)

Significantly Below Fair Value: SONALILIFE is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SONALILIFE?

Key metric: As SONALILIFE is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SONALILIFE. This is calculated by dividing SONALILIFE's market cap by their current earnings.
What is SONALILIFE's PE Ratio?
PE Ratio	0.6x
Earnings	৳3.97b
Market Cap	৳2.51b

SONALILIFE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does SONALILIFE's PE Ratio compare to its peers?

The above table shows the PE ratio for SONALILIFE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	15.2x
SUNLIFEINS Sunlife Insurance	17.8x	n/a	৳2.2b
POPULARLIF Popular Life Insurance	6.3x	n/a	৳3.1b
CLICL Chartered Life Insurance	11.6x	n/a	৳1.5b
PRAGATILIF Pragati Life Insurance	25x	n/a	৳5.2b
SONALILIFE Sonali Life Insurance	0.6x	n/a	৳2.5b

Price-To-Earnings vs Peers: SONALILIFE is good value based on its Price-To-Earnings Ratio (0.6x) compared to the peer average (14.7x).

Price to Earnings Ratio vs Industry

How does SONALILIFE's PE Ratio compare vs other companies in the BD Insurance Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	17.7x	2.3%
SONALILIFE Sonali Life Insurance	0.6x	n/a	US$20.95m
NATLIFEINS National Life Insurance	2x	n/a	US$103.52m
DELTALIFE Delta Life Insurance	2.3x	n/a	US$85.54m

No more companies available in this PE range

3 Companies		Estimated Growth	Market Cap
Industry Avg.	17.7x	2.3%
SONALILIFE Sonali Life Insurance	0.6x	n/a	US$20.95m

No more companies

Price-To-Earnings vs Industry: SONALILIFE is good value based on its Price-To-Earnings Ratio (0.6x) compared to the BD Insurance industry average (17.7x).

Price to Earnings Ratio vs Fair Ratio

What is SONALILIFE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SONALILIFE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	0.6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SONALILIFE's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.