China Stock Valuation

LFC
 Stock
  

USD 5.58  0.01  0.18%   

Do you wonder what the value of China Life Insurance is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as China Life, is its stock price multiplied by the total number of shares outstanding, calculating China Life's enterprise value requires a different approach. It uses China Life's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
China Life Insurance shows a prevailing Real Value of $7.11 per share. The current price of the firm is $5.58. At this time, the firm appears to be undervalued. Our model approximates the value of China Life Insurance from analyzing the firm fundamentals such as Return On Equity of 8.22 %, current valuation of (128.8 B), and Profit Margin of 4.89 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor taking in undervalued instruments and trading overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
China Life Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as China Life's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

China Most Recent Valuation Data

Price Book
0.57
Enterprise Value
113.3 B
Price Sales
0.13
Forward PE
5.44
Trailing PE
7.83
Enterprise Value Revenue
0.14
Undervalued
Today 5.58
Please note that China Life's price fluctuation is very steady at this time. Calculation of the real value of China Life Insurance is based on 3 months time horizon. Increasing China Life's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for China Life Insurance is useful when determining the fair value of the China stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of China Life. Since China Life is currently traded on the exchange, buyers and sellers on that exchange determine the market value of China Stock. However, China Life's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
7.11
Real Value
7.11
Upside
Estimating the potential upside or downside of China Life Insurance helps investors to forecast how China stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of China Life more accurately as focusing exclusively on China Life's fundamentals will not take into account other important factors:
Earnings
Estimates (2)
LowProjected EPSHigh
1.401.531.67
Details
Hype
Prediction
LowEstimated ValueHigh
5.585.585.58
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.330.330.33
Details
2 Analysts
Consensus
LowTarget PriceHigh
11.8511.8511.85
Details

China Life Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining China Life's current stock value. Our valuation model uses many indicators to compare China Life value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across China Life competition to find correlations between indicators driving China Life's intrinsic value. More Info.
China Life Insurance is rated fifth overall in price to earning category among related companies. It is rated fourth overall in last dividend paid category among related companies creating about  0.12  of Last Dividend Paid per Price to Earning. The ratio of Price to Earning to Last Dividend Paid for China Life Insurance is roughly  8.53 . Comparative valuation analysis is a catch-all model that can be used if you cannot value China Life by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for China Life's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the China Life's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates China Life's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in China Life and how it compares across the competition.

About China Life Valuation

The stock valuation mechanism determines the current worth of China Life Insurance on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of China Life Insurance. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of China Life Insurance based exclusively on its fundamental and basic technical indicators. By analyzing China Life's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of China Life's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of China Life. We calculate exposure to China Life's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to China Life's related companies.
Fiscal Year End
December
Industry
Insurance
Concentration
Life & Health Insurance
Full Time Employees
103.3 K
Service Category
Insurance
China Life Insurance Company Limited, together with its subsidiaries, operates as a life insurance company in the Peoples Republic of China. China Life Insurance Company Limited is a subsidiary of China Life Insurance Company Limited. China Life operates under InsuranceLife classification in the United States and is traded on NYQ Exchange. It employs 103262 people.
China Life's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether China Life's value is low or high relative to the company's performance and growth projections. Determining the market value of China Life can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of China Life represents a small ownership stake in the entity. As a stockholder of China, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

China Life Dividends Analysis For Valuation

Please note that China Life has scaled down on payment of dividends at this time.
There are various types of dividends China Life can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of China shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from China Life Insurance directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When China pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of China Life by the value of the dividends paid out.

China Life Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as China Life does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.97
Earnings Quarterly Growth-46.90%
Revenue Growth-7.70%
Payout Ratio35.44%
Enterprise Value To Ebitda-2.38
Earnings Growth-46.50%
Enterprise Value To Revenue-0.17
Additionally, see Correlation Analysis. Note that the China Life Insurance information on this page should be used as a complementary analysis to other China Life's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

Complementary Tools for China Stock analysis

When running China Life Insurance price analysis, check to measure China Life's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy China Life is operating at the current time. Most of China Life's value examination focuses on studying past and present price action to predict the probability of China Life's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move China Life's price. Additionally, you may evaluate how the addition of China Life to your portfolios can decrease your overall portfolio volatility.
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Is China Life's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of China Life. If investors know China will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about China Life listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.18) 
Market Capitalization
102.5 B
Quarterly Revenue Growth YOY
(0.24) 
Return On Assets
0.006
Return On Equity
0.0763
The market value of China Life Insurance is measured differently than its book value, which is the value of China that is recorded on the company's balance sheet. Investors also form their own opinion of China Life's value that differs from its market value or its book value, called intrinsic value, which is China Life's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because China Life's market value can be influenced by many factors that don't directly affect China Life's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between China Life's value and its price as these two are different measures arrived at by different means. Investors typically determine China Life value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, China Life's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.