Is Life Insurance overvalued or undervalued?

Jun 09 2025 04:39 PM IST
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As of May 29, 2025, Life Insurance is fairly valued with a PE ratio of 12.54, an EV to EBIT of 9.89, and a strong ROE of 37.98%, outperforming the Sensex with a 22.34% return over the past month, despite a downgrade from very attractive to fair compared to peers like Bajaj Finance and SBI Life Insurance.
As of 29 May 2025, the valuation grade for Life Insurance has moved from very attractive to fair. The company appears to be fairly valued at this time. Key ratios include a PE ratio of 12.54, an EV to EBIT of 9.89, and an impressive ROE of 37.98%.

In comparison to its peers, Life Insurance's PE ratio is significantly lower than that of Bajaj Finance Ltd., which is considered very expensive at 35.01, and Bajaj Finserv Ltd., which has a PE of 35.83. Additionally, while SBI Life Insurance Co. Ltd. is rated very attractive with a PE of 74.03, Life Insurance's valuation remains competitive within the industry. Notably, the company's stock has outperformed the Sensex over the past month, returning 22.34% compared to the Sensex's 3.81%, indicating a positive momentum despite the recent downgrade in valuation grade.
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