Life Insurance Corporation of India (LICI.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

+61.4%

₹641.41

vs ₹397.45 price

Levered DCF

₹261.79

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

—

Rating

B-

Overall 2 / 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	7.99×	10.44×	15×	9.39×	134.24×	186.23×	-172.98×	717.43×
P/B	2.59×	4.56×	7.42×	7.31×	48.83×	80.42×	552.59×	683.73×
P/S	0.47×	0.65×	0.72×	0.43×	0.76×	0.81×	0.89×	0.98×
EV / EBITDA	6.73×	10.42×	13.87×	8.38×	111.03×	149.27×	51.2×	121.24×
Gross margin	49.0%	97.1%	96.9%	96.7%	96.7%	96.5%	96.2%	96.0%
Operating margin	5.9%	5.4%	4.8%	5.1%	0.6%	0.4%	-0.5%	0.1%
Net margin	5.9%	5.4%	4.8%	4.6%	0.6%	0.4%	-0.5%	0.1%
Current ratio	0×	0.04×	0.81×	1.02×	0.79×	0.75×	1.32×	1.88×
Debt / equity	0×	0×	0×	0×	0×	0×	57.89×	73.67×
Interest coverage	0×	338.95×	321.06×	515.47×	48.03×	26.25×	-0.24×	0.22×
Dividend yield	1.7%	0.7%	0.7%	0.3%	0.0%	0.5%	0.0%	0.0%
Payout ratio	13.3%	7.9%	10.8%	2.6%	0.0%	91.3%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	32.5%	38.0%	49.4%	77.9%	36.4%	43.2%	-319.6%	94.9%
Return on invested capital	1.0%	5.6%	0.8%	0.9%	0.1%	0.1%	-0.1%	0.0%
Return on assets	1.0%	0.9%	0.8%	0.8%	0.1%	0.1%	-0.1%	0.0%
Free cash flow yield	-6.0%	-1.7%	4.2%	15.9%	-0.8%	14.4%	9.6%	1.9%
Earnings yield	12.5%	8.3%	6.7%	10.7%	0.7%	0.5%	-0.6%	0.1%
Enterprise value	₹3.9T	₹5.1T	₹5.8T	₹3.1T	₹5.2T	₹5.2T	₹5.6T	₹5.7T
Net debt / EBITDA	-1.25×	-1.43×	-0.87×	-0.84×	-7.07×	-8.32×	0.52×	2.69×
Cash conversion cycle (days)	0	29	33	36	35	1	2	3