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

SZSC:2318 Stock Report

Market Cap: HK$939.7b

Ping An Insurance (Group) Company of China Valuation

Is 2318 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 2318 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2318 (HK$44.7) is trading below our estimate of fair value (HK$141.77)

Significantly Below Fair Value: 2318 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2318?

Key metric: As 2318 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2318. This is calculated by dividing 2318's market cap by their current earnings.
What is 2318's PE Ratio?
PE Ratio8.2x
EarningsCN¥117.27b
Market CapCN¥874.91b

Price to Earnings Ratio vs Peers

How does 2318's PE Ratio compare to its peers?

The above table shows the PE ratio for 2318 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.8x
2628 China Life Insurance
4.4x-14.5%HK$1.0t
1299 AIA Group
16.3x13.9%HK$611.4b
6963 Sunshine Insurance Group
7.3x17.0%HK$31.2b
966 China Taiping Insurance Holdings
7.2x12.6%HK$43.0b
2318 Ping An Insurance (Group) Company of China
8.2x7.6%HK$874.9b

Price-To-Earnings vs Peers: 2318 is good value based on its Price-To-Earnings Ratio (8.2x) compared to the peer average (8.8x).

Price to Earnings Ratio vs Industry

How does 2318's PE Ratio compare vs other companies in the Asian Insurance Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
2318 8.2xIndustry Avg. 10.9xNo. of Companies47PE0816243240+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2318 is good value based on its Price-To-Earnings Ratio (8.2x) compared to the Asian Insurance industry average (11x).

Price to Earnings Ratio vs Fair Ratio

What is 2318'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.

2318 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.2x
Fair PE Ratio9.3x

Price-To-Earnings vs Fair Ratio: 2318 is good value based on its Price-To-Earnings Ratio (8.2x) compared to the estimated Fair Price-To-Earnings Ratio (9.3x).

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.

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