Life Insurance Corporation of India

NSEI:LICI Stock Report

Market Cap: ₹5.7t

Life Insurance Corporation of India Valuation

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

Below Fair Value: LICI (₹908.65) is trading below our estimate of fair value (₹1238.39)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LICI. This is calculated by dividing LICI's market cap by their current earnings.
What is LICI's PE Ratio?
PE Ratio12x
Earnings₹480.73b
Market Cap₹5.75t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LICI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average99.4x
SBILIFE SBI Life Insurance
71.8x11.7%₹1.6t
HDFCLIFE HDFC Life Insurance
88.3x16.0%₹1.5t
ICICIPRULI ICICI Prudential Life Insurance
114.5x1.7%₹1.0t
MFSL Max Financial Services
123x22.9%₹423.6b
LICI Life Insurance Corporation of India
12x-0.5%₹5.7t

Price-To-Earnings vs Peers: LICI is good value based on its Price-To-Earnings Ratio (12x) compared to the peer average (99.4x).

Price to Earnings Ratio vs Industry

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

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
LICI 12.0xIndustry Avg. 11.0xNo. of Companies44PE0816243240+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LICI is expensive based on its Price-To-Earnings Ratio (12x) compared to the Asian Insurance industry average (11x).

Price to Earnings Ratio vs Fair Ratio

What is LICI'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.

LICI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12x
Fair PE Ratio22.6x

Price-To-Earnings vs Fair Ratio: LICI is good value based on its Price-To-Earnings Ratio (12x) compared to the estimated Fair Price-To-Earnings Ratio (22.6x).

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 LICI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹908.65
₹1,162.39
+27.9%
12.6%₹1,385.00₹870.00n/a18
Nov ’25₹930.35
₹1,151.83
+23.8%
15.1%₹1,330.00₹790.00n/a18
Oct ’25₹1,000.05
₹1,158.22
+15.8%
15.1%₹1,330.00₹790.00n/a18
Sep ’25₹1,064.25
₹1,159.78
+9.0%
15.2%₹1,350.00₹790.00n/a18
Aug ’25₹1,179.15
₹1,123.17
-4.7%
14.7%₹1,300.00₹790.00n/a18
Jul ’25₹996.35
₹1,098.61
+10.3%
16.6%₹1,300.00₹775.00n/a18
Jun ’25₹1,012.70
₹1,130.28
+11.6%
16.9%₹1,470.00₹790.00n/a18
May ’25₹978.25
₹1,088.83
+11.3%
18.3%₹1,340.00₹750.00n/a18
Apr ’25₹970.60
₹1,059.83
+9.2%
18.9%₹1,340.00₹680.00n/a18
Mar ’25₹1,029.70
₹1,059.83
+2.9%
18.9%₹1,340.00₹680.00n/a18
Feb ’25₹937.00
₹856.65
-8.6%
13.2%₹1,045.00₹620.00n/a17
Jan ’25₹858.75
₹827.06
-3.7%
14.2%₹1,045.00₹620.00n/a17
Dec ’24₹670.90
₹819.71
+22.2%
14.4%₹1,045.00₹620.00n/a17
Nov ’24₹600.00
₹795.00
+32.5%
15.6%₹1,045.00₹590.00₹930.3517
Oct ’24₹649.75
₹795.00
+22.4%
15.6%₹1,045.00₹590.00₹1,000.0517
Sep ’24₹645.75
₹795.00
+23.1%
15.6%₹1,045.00₹590.00₹1,064.2517
Aug ’24₹647.25
₹796.88
+23.1%
16.0%₹1,045.00₹590.00₹1,179.1516
Jul ’24₹632.25
₹795.69
+25.9%
16.1%₹1,045.00₹590.00₹996.3516
Jun ’24₹597.15
₹809.40
+35.5%
14.9%₹1,045.00₹660.00₹1,012.7015
May ’24₹549.90
₹798.13
+45.1%
15.5%₹1,005.00₹625.00₹978.2515
Apr ’24₹534.35
₹802.29
+50.1%
15.6%₹1,005.00₹625.00₹970.6014
Mar ’24₹601.70
₹825.92
+37.3%
12.8%₹1,005.00₹700.00₹1,029.7013
Feb ’24₹598.45
₹862.25
+44.1%
10.0%₹1,000.00₹730.00₹937.0012
Jan ’24₹684.60
₹847.91
+23.9%
9.5%₹1,000.00₹740.00₹858.7511
Dec ’23₹650.90
₹847.91
+30.3%
9.5%₹1,000.00₹740.00₹670.9011
Nov ’23₹605.20
₹853.89
+41.1%
9.3%₹1,000.00₹720.00₹600.009

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

Discover undervalued companies

Star Health and Allied Insurance

₹278.0b

Provides health insurance products in India.

543412

₹474.65

7D

-1.4%

1Y

-12.8%

Star Health and Allied Insurance

₹278.0b

Provides health insurance products in India.

STARHEALTH

₹474.75

7D

-1.4%

1Y

-12.8%

General Insurance Corporation of India

₹621.4b

Provides reinsurance services in India and internationally.

540755

₹354.20

7D

-2.9%

1Y

36.8%