Ping An Insurance (Group) Company of China, Ltd.

SHSE:601318 Stock Report

Market Cap: CN¥866.7b

Ping An Insurance (Group) Company of China Valuation

Is 601318 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • 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 601318 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 601318 (CN¥53.05) is trading below our estimate of fair value (CN¥160.87)

Significantly Below Fair Value: 601318 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 601318?

Key metric: As 601318 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 601318. This is calculated by dividing 601318's market cap by their current earnings.
What is 601318's PE Ratio?
PE Ratio8.2x
EarningsCN¥117.27b
Market CapCN¥866.72b

Price to Earnings Ratio vs Peers

How does 601318's PE Ratio compare to its peers?

The above table shows the PE ratio for 601318 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.9x
601336 New China Life Insurance
7.2x-11.7%CN¥118.4b
601601 China Pacific Insurance (Group)
7.6x-5.4%CN¥291.5b
2628 China Life Insurance
4.3x-13.8%HK$1.0t
AFL Aflac
16.5x-1.7%US$62.4b
601318 Ping An Insurance (Group) Company of China
8.2x7.6%CN¥866.7b

Price-To-Earnings vs Peers: 601318 is good value based on its Price-To-Earnings Ratio (8.2x) compared to the peer average (8.9x).

Price to Earnings Ratio vs Industry

How does 601318's PE Ratio compare vs other companies in the Asian Insurance Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
601318 8.2xIndustry Avg. 10.9xNo. of Companies50PE0816243240+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 601318 is good value based on its Price-To-Earnings Ratio (8.2x) compared to the Asian Insurance industry average (10.9x).

Price to Earnings Ratio vs Fair Ratio

What is 601318'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.

601318 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.2x
Fair PE Ratio10.3x

Price-To-Earnings vs Fair Ratio: 601318 is good value based on its Price-To-Earnings Ratio (8.2x) compared to the estimated Fair Price-To-Earnings Ratio (10.3x).

Analyst Price Targets

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

The above table shows the analyst 601318 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥53.05
CN¥64.03
+20.7%
12.3%CN¥75.60CN¥48.30n/a16
Nov ’25CN¥56.15
CN¥63.12
+12.4%
12.2%CN¥75.60CN¥48.30n/a17
Oct ’25CN¥57.09
CN¥55.14
-3.4%
14.8%CN¥71.90CN¥42.00n/a17
Sep ’25CN¥44.03
CN¥55.83
+26.8%
16.0%CN¥72.00CN¥42.00n/a17
Aug ’25CN¥42.51
CN¥57.48
+35.2%
15.3%CN¥72.00CN¥42.00n/a16
Jul ’25CN¥41.62
CN¥57.88
+39.1%
14.1%CN¥72.00CN¥43.00n/a17
Jun ’25CN¥43.07
CN¥56.19
+30.5%
16.8%CN¥72.00CN¥36.00n/a19
May ’25CN¥41.36
CN¥55.21
+33.5%
17.5%CN¥72.00CN¥36.00n/a19
Apr ’25CN¥41.25
CN¥55.95
+35.6%
17.6%CN¥72.00CN¥36.00n/a19
Mar ’25CN¥42.99
CN¥61.37
+42.8%
18.1%CN¥86.00CN¥36.00n/a20
Feb ’25CN¥40.30
CN¥63.21
+56.8%
15.1%CN¥86.00CN¥46.00n/a20
Jan ’25CN¥40.30
CN¥64.96
+61.2%
13.0%CN¥86.00CN¥52.00n/a20
Dec ’24CN¥41.02
CN¥65.31
+59.2%
13.0%CN¥86.00CN¥52.00n/a20
Nov ’24CN¥45.11
CN¥66.68
+47.8%
12.9%CN¥86.00CN¥56.54CN¥56.1519
Oct ’24CN¥48.30
CN¥66.37
+37.4%
14.5%CN¥86.00CN¥49.95CN¥57.0920
Sep ’24CN¥50.10
CN¥66.57
+32.9%
13.5%CN¥86.00CN¥52.00CN¥44.0320
Aug ’24CN¥51.74
CN¥65.36
+26.3%
17.7%CN¥86.00CN¥33.60CN¥42.5121
Jul ’24CN¥46.40
CN¥65.13
+40.4%
17.9%CN¥86.00CN¥33.60CN¥41.6221
Jun ’24CN¥47.45
CN¥64.94
+36.9%
18.3%CN¥86.00CN¥33.60CN¥43.0720
May ’24CN¥51.80
CN¥64.09
+23.7%
18.6%CN¥86.00CN¥33.60CN¥41.3621
Apr ’24CN¥45.60
CN¥64.09
+40.6%
18.3%CN¥86.00CN¥33.60CN¥41.2520
Mar ’24CN¥49.99
CN¥64.02
+28.1%
20.3%CN¥86.00CN¥25.00CN¥42.9921
Feb ’24CN¥51.35
CN¥62.37
+21.5%
20.1%CN¥86.00CN¥25.00CN¥40.3021
Jan ’24CN¥47.00
CN¥60.62
+29.0%
19.7%CN¥84.00CN¥25.00CN¥40.3021
Dec ’23CN¥44.83
CN¥60.19
+34.3%
20.3%CN¥84.00CN¥25.00CN¥41.0221
Nov ’23CN¥37.46
CN¥60.24
+60.8%
20.4%CN¥84.00CN¥25.00CN¥45.1121

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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