Is HDFC Life Insur. overvalued or undervalued?

Jun 19 2025 08:02 AM IST
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As of June 18, 2025, HDFC Life Insurance is fairly valued with a PE Ratio of 91.17, an EV to EBITDA of 201.14, and a ROE of 11.21%, despite being priced at a premium compared to peers, while outperforming the Sensex with a year-to-date return of 24.2%.
As of 18 June 2025, the valuation grade for HDFC Life Insurance has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE Ratio of 91.17, an EV to EBITDA of 201.14, and a ROE of 11.21%.

When compared to peers, HDFC Life's PE Ratio significantly exceeds that of Life Insurance, which stands at 12.23, indicating that HDFC Life is priced at a premium relative to its peers. In contrast, SBI Life Insurance, which is rated very attractive, has a PE Ratio of 74.56. Additionally, HDFC Life has outperformed the Sensex in the year-to-date period with a return of 24.2% compared to the Sensex's 4.23%, reinforcing the notion that the stock is fairly valued in the current market context.
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