HDFC Life Insurance Company Limited (HDFCLIFE.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-55.3%

₹234.45

vs ₹524.15 price

Levered DCF

₹2,322.82

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

0.44

Distress zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	66.58×	82.39×	86.71×	77.88×	82.93×	103.29×	68.64×	60.54×
P/B	7.17×	9.24×	9.31×	8.2×	7.05×	16.27×	13.08×	13.7×
P/S	1.27×	1.66×	1.42×	1.52×	1.63×	1.96×	3.11×	2.02×
EV / EBITDA	65.45×	70.57×	76.84×	72.25×	75.31×	94.74×	64.14×	56.01×
Gross margin	61.4%	91.3%	94.5%	95.9%	97.0%	97.6%	94.8%	97.0%
Operating margin	2.0%	2.1%	1.6%	1.8%	1.9%	1.9%	4.5%	3.3%
Net margin	1.9%	2.0%	1.6%	1.9%	2.0%	1.9%	4.5%	3.3%
Current ratio	0×	2.34×	1.22×	3.45×	0.45×	1.36×	0.78×	1.8×
Debt / equity	0.17×	0.18×	0.06×	0.07×	0.04×	0.07×	0×	0×
Interest coverage	0×	13.24×	14.03×	11.32×	14.15×	18.87×	76.29×	90.81×
Dividend yield	0.4%	0.3%	0.3%	0.4%	0.4%	0.0%	0.0%	0.5%
Payout ratio	23.7%	27.6%	30.3%	29.2%	33.8%	0.0%	0.0%	31.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	10.8%	11.2%	10.7%	10.5%	8.5%	15.8%	19.1%	22.6%
Return on invested capital	0.5%	0.5%	0.5%	0.5%	0.6%	0.8%	1.0%	1.0%
Return on assets	0.5%	0.5%	0.5%	0.6%	0.6%	0.8%	1.0%	1.0%
Free cash flow yield	28.5%	10.3%	7.8%	6.4%	5.3%	6.9%	8.3%	12.7%
Earnings yield	1.5%	1.2%	1.2%	1.3%	1.2%	1.0%	1.5%	1.7%
Enterprise value	₹1.3T	₹1.5T	₹1.4T	₹1.1T	₹1.1T	₹1.4T	₹883.7B	₹756.4B
Net debt / EBITDA	0.57×	0.32×	-0.7×	-0.15×	-0.53×	-0.47×	-0.5×	-1.25×
Cash conversion cycle (days)	0	-44	-96	-197	-382	-538	-512	-539