LIC of India Intrinsic Value

LICI • Insurance
Current Stock Price
₹850.05
Primary Intrinsic Value
₹766.56
Market Cap
₹5376.6K Cr
-38.1% Downside
Median Value
₹526.37
Value Range
₹202 - ₹1022
Assessment
Trading Above Calculated Value
Safety Margin
-61.5%

LICI Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹766.56 ₹613.25 - ₹919.87 -9.8% EPS: ₹63.88, Sector P/E: 12x
Book Value Method asset ₹201.59 ₹181.43 - ₹221.75 -76.3% Book Value/Share: ₹201.59, P/B: 1.0x
Revenue Multiple Method revenue ₹647.46 ₹582.71 - ₹712.21 -23.8% Revenue/Share: ₹809.32, P/S: 0.8x
Simple DCF (5Y) dcf ₹389.67 ₹311.74 - ₹467.60 -54.2% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹408.83 ₹367.95 - ₹449.71 -51.9% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹526.37 ₹473.73 - ₹579.01 -38.1% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹1021.57 ₹919.41 - ₹1123.73 +20.2% ROE: 31.7%, P/E Multiple: 16x
Graham Defensive Method conservative ₹403.17 ₹362.85 - ₹443.49 -52.6% EPS: ₹63.88, BVPS: ₹201.59
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

LICI Intrinsic Value Analysis

What is the intrinsic value of LICI?

Based on our comprehensive analysis using 8 different valuation methods, the estimated intrinsic value of LIC of India (LICI) is ₹526.37 (median value). With the current market price of ₹850.05, this represents a -38.1% variance from our estimated fair value.

The valuation range spans from ₹201.59 to ₹1021.57, indicating ₹201.59 - ₹1021.57.

Is LICI undervalued or overvalued?

Based on our multi-method analysis, LIC of India (LICI) appears to be trading above calculated value by approximately 38.1%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 0.04 Industry Standard: 2.0+ Below 1.5 Measures short-term liquidity capacity
Debt to Equity Ratio 44.01 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 31.7% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin -83.0% Industry Standard: 20%+ Below 10% Indicates operational efficiency level
Asset Turnover Ratio 0.09x Industry Standard: 1.0x+ Below 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹-9,145 Cr ₹-9,145 Cr Negative Cash Flow 3/10
March 2024 ₹26,548 Cr ₹13,701 Cr Positive Free Cash Flow 8/10
March 2023 ₹54,519 Cr ₹28,095 Cr Positive Free Cash Flow 8/10
March 2022 ₹-3,783 Cr ₹-3,783 Cr Negative Cash Flow 3/10
March 2021 ₹80,602 Cr ₹80,602 Cr Positive Free Cash Flow 8/10