Lotte Non - Life Insurance Valuation

Q: What is the Fair Price of A000400 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

A000400 (₩1964) is trading above our estimate of [[fair value]] (₩179.36)

Is A000400 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 A000400 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: A000400 (₩1964) is trading above our estimate of fair value (₩179.36)

Significantly Below Fair Value: A000400 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for A000400?

Key metric: As A000400 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for A000400. This is calculated by dividing A000400's market cap by their current earnings.
What is A000400's PE Ratio?
PE Ratio	2.2x
Earnings	₩281.87b
Market Cap	₩601.84b

A000400 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/Revenue	0.5x
Enterprise Value/EBITDA	1.6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does A000400's PE Ratio compare to its peers?

The above table shows the PE ratio for A000400 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	3.9x
A000370 Hanwha General Insurance	1.9x	9.3%	₩529.0b
A001450 Hyundai Marine & Fire Insurance	2.4x	7.6%	₩2.2t
A005830 DB Insurance	3.4x	1.6%	₩6.4t
A000810 Samsung Fire & Marine Insurance	8x	5.6%	₩15.5t
A000400 Lotte Non - Life Insurance	2.2x	n/a	₩601.8b

Price-To-Earnings vs Peers: A000400 is good value based on its Price-To-Earnings Ratio (2.2x) compared to the peer average (3.9x).

Price to Earnings Ratio vs Industry

How does A000400's PE Ratio compare vs other companies in the Asian Insurance Industry?

7 Companies	Price / Earnings	Estimated Growth	Market Cap

7 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: A000400 is good value based on its Price-To-Earnings Ratio (2.2x) compared to the Asian Insurance industry average (11x).

Price to Earnings Ratio vs Fair Ratio

What is A000400'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.

A000400 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	2.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate A000400's Price-To-Earnings Fair Ratio for valuation analysis.

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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