China Life Insurance Company Limited

SEHK:2628 Stock Report

Market Cap: HK$784.6b

China Life Insurance Valuation

Is 2628 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 2628 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2628 (HK$10.74) is trading below our estimate of fair value (HK$35.82)

Significantly Below Fair Value: 2628 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2628?

Other financial metrics that can be useful for relative valuation.

2628 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/Revenue0.9x
Enterprise Value/EBITDA22.5x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does 2628's PE Ratio compare to its peers?

The above table shows the PE ratio for 2628 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.9x
1299 AIA Group
21x17.1%HK$617.7b
6963 Sunshine Insurance Group
7.4x17.8%HK$29.9b
966 China Taiping Insurance Holdings
5.7x9.7%HK$31.2b
1339 People's Insurance Company (Group) of China
5.6x13.2%HK$221.3b
2628 China Life Insurance
14.9x22.2%HK$784.6b

Price-To-Earnings vs Peers: 2628 is expensive based on its Price-To-Earnings Ratio (14.9x) compared to the peer average (9.8x).


Price to Earnings Ratio vs Industry

How does 2628's PE Ratio compare vs other companies in the Asian Insurance Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 2628 is expensive based on its Price-To-Earnings Ratio (14.9x) compared to the Asian Insurance industry average (11.2x).


Price to Earnings Ratio vs Fair Ratio

What is 2628'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.

2628 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.9x
Fair PE Ratio10x

Price-To-Earnings vs Fair Ratio: 2628 is expensive based on its Price-To-Earnings Ratio (14.9x) compared to the estimated Fair Price-To-Earnings Ratio (10x).


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 2628 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$10.74
HK$14.69
+36.8%
15.1%HK$19.94HK$10.98n/a22
Jun ’25HK$11.08
HK$14.54
+31.2%
15.5%HK$19.95HK$10.98n/a22
May ’25HK$10.42
HK$14.37
+37.9%
18.6%HK$19.99HK$7.60n/a21
Apr ’25HK$9.39
HK$14.32
+52.5%
19.3%HK$19.91HK$7.60n/a21
Mar ’25HK$9.64
HK$14.73
+52.8%
21.1%HK$20.00HK$7.61n/a22
Feb ’25HK$9.07
HK$15.08
+66.3%
20.2%HK$20.33HK$7.60n/a22
Jan ’25HK$10.12
HK$16.31
+61.2%
17.4%HK$22.23HK$10.23n/a22
Dec ’24HK$10.50
HK$16.48
+57.0%
17.1%HK$22.17HK$10.20n/a22
Nov ’24HK$10.60
HK$15.98
+50.7%
16.8%HK$21.60HK$10.00n/a24
Oct ’24HK$12.20
HK$16.86
+38.2%
15.5%HK$22.83HK$11.96n/a23
Sep ’24HK$11.90
HK$17.22
+44.7%
13.8%HK$23.00HK$12.97n/a24
Aug ’24HK$13.52
HK$17.54
+29.8%
16.8%HK$22.83HK$12.07n/a23
Jul ’24HK$13.06
HK$17.49
+33.9%
15.9%HK$23.01HK$12.12n/a23
Jun ’24HK$13.04
HK$17.61
+35.0%
15.6%HK$22.48HK$12.25HK$11.0823
May ’24HK$15.02
HK$17.32
+15.3%
16.4%HK$23.04HK$12.62HK$10.4223
Apr ’24HK$12.90
HK$17.76
+37.7%
17.6%HK$25.07HK$12.43HK$9.3922
Mar ’24HK$14.10
HK$16.99
+20.5%
15.2%HK$21.97HK$12.54HK$9.6423
Feb ’24HK$14.40
HK$17.07
+18.5%
15.3%HK$22.39HK$12.79HK$9.0723
Jan ’24HK$13.40
HK$15.02
+12.1%
16.5%HK$21.73HK$11.17HK$10.1221
Dec ’23HK$11.86
HK$14.45
+21.8%
17.7%HK$21.13HK$10.82HK$10.5022
Nov ’23HK$8.84
HK$14.35
+62.3%
17.2%HK$20.94HK$10.72HK$10.6022
Oct ’23HK$10.06
HK$14.77
+46.8%
15.9%HK$19.43HK$10.83HK$12.2024
Sep ’23HK$11.20
HK$15.27
+36.3%
16.3%HK$20.15HK$11.60HK$11.9023
Aug ’23HK$11.62
HK$15.31
+31.8%
17.0%HK$20.57HK$11.62HK$13.5223
Jul ’23HK$13.66
HK$15.36
+12.5%
16.4%HK$20.77HK$11.73HK$13.0623
Jun ’23HK$12.04
HK$15.16
+25.9%
16.8%HK$20.51HK$11.59HK$13.0423

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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