HDFC Life Insurance Company Limited

NSEI:HDFCLIFE Stock Report

Market Cap: ₹1.5t

HDFC Life Insurance Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: HDFCLIFE (₹694) is trading above our estimate of fair value (₹101.8)

Significantly Below Fair Value: HDFCLIFE is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HDFCLIFE. This is calculated by dividing HDFCLIFE's market cap by their current earnings.
What is HDFCLIFE's PE Ratio?
PE Ratio88.3x
Earnings₹16.93b
Market Cap₹1.49t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HDFCLIFE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average85.4x
SBILIFE SBI Life Insurance
71.8x11.7%₹1.6t
ICICIPRULI ICICI Prudential Life Insurance
114.5x1.7%₹1.0t
MFSL Max Financial Services
123x22.9%₹423.6b
STARHEALTH Star Health and Allied Insurance
32.2x18.3%₹278.0b
HDFCLIFE HDFC Life Insurance
88.3x16.0%₹1.5t

Price-To-Earnings vs Peers: HDFCLIFE is expensive based on its Price-To-Earnings Ratio (88.3x) compared to the peer average (85.4x).

Price to Earnings Ratio vs Industry

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

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HDFCLIFE 88.3xIndustry Avg. 11.0xNo. of Companies44PE0816243240+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HDFCLIFE is expensive based on its Price-To-Earnings Ratio (88.3x) compared to the Asian Insurance industry average (11x).

Price to Earnings Ratio vs Fair Ratio

What is HDFCLIFE'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.

HDFCLIFE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio88.3x
Fair PE Ratio38.1x

Price-To-Earnings vs Fair Ratio: HDFCLIFE is expensive based on its Price-To-Earnings Ratio (88.3x) compared to the estimated Fair Price-To-Earnings Ratio (38.1x).

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 HDFCLIFE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹694.00
₹808.27
+16.5%
8.0%₹900.00₹585.00n/a33
Nov ’25₹723.70
₹808.27
+11.7%
8.0%₹900.00₹585.00n/a33
Oct ’25₹710.20
₹769.79
+8.4%
9.4%₹900.00₹585.00n/a33
Sep ’25₹738.70
₹747.67
+1.2%
7.8%₹840.00₹585.00n/a33
Aug ’25₹713.60
₹741.67
+3.9%
7.6%₹840.00₹560.00n/a33
Jul ’25₹600.75
₹723.88
+20.5%
7.5%₹840.00₹560.00n/a33
Jun ’25₹549.85
₹731.19
+33.0%
6.7%₹840.00₹610.00n/a32
May ’25₹583.65
₹731.19
+25.3%
6.7%₹840.00₹610.00n/a32
Apr ’25₹634.75
₹743.35
+17.1%
6.6%₹850.00₹635.00n/a31
Mar ’25₹589.95
₹743.35
+26.0%
6.6%₹850.00₹635.00n/a31
Feb ’25₹587.10
₹742.09
+26.4%
6.5%₹850.00₹635.00n/a32
Jan ’25₹648.70
₹747.06
+15.2%
7.1%₹830.00₹556.00n/a31
Dec ’24₹682.15
₹745.61
+9.3%
6.9%₹830.00₹556.00n/a31
Nov ’24₹620.05
₹737.47
+18.9%
7.9%₹830.00₹556.00₹723.7032
Oct ’24₹637.40
₹735.81
+15.4%
8.5%₹820.00₹556.00₹710.2032
Sep ’24₹641.35
₹733.94
+14.4%
8.4%₹820.00₹556.00₹738.7032
Aug ’24₹642.75
₹728.94
+13.4%
8.8%₹820.00₹556.00₹713.6032
Jul ’24₹651.20
₹652.72
+0.2%
10.8%₹820.00₹485.00₹600.7529
Jun ’24₹582.20
₹637.34
+9.5%
8.6%₹752.00₹485.00₹549.8529
May ’24₹529.75
₹637.34
+20.3%
8.6%₹752.00₹485.00₹583.6529
Apr ’24₹499.20
₹631.52
+26.5%
11.0%₹780.00₹470.00₹634.7529
Mar ’24₹489.75
₹649.20
+32.6%
12.2%₹800.00₹460.00₹589.9530
Feb ’24₹515.70
₹706.67
+37.0%
8.3%₹890.00₹590.00₹587.1030
Jan ’24₹566.25
₹682.52
+20.5%
6.4%₹800.00₹590.00₹648.7031
Dec ’23₹596.45
₹681.27
+14.2%
6.5%₹800.00₹590.00₹682.1530
Nov ’23₹544.55
₹682.57
+25.3%
6.6%₹800.00₹590.00₹620.0530

Analyst Forecast: Target price is less than 20% higher than the current share price.

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