HDFC Life Insurance Company Limited (HDFCLIFE) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of HDFC Life Insurance Company Limited stock ₹77.75, price ₹544, that is 85.7% below the price, quality 49 out of 100. Rating: strongly overvalued. Calculated from audited financials with 6 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 4, 2026.
How to read this chart
60‑month range ₹453.92 – ₹808.59 · fair‑value band ₹70.15 – ₹97.11 · the ₹543.80 price screens above the ₹77.75 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 4, 2026.
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HDFC Life Insurance Company Limited provides individual and group insurance solutions in India. It offers insurance and investment products, such as protection, pension, savings, investment, annuity, and health, as well as term, investment, and life insurance plans.
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The company was formerly known as HDFC Standard Life Insurance Company Limited changed its name to HDFC Life Insurance Company Limited in January 2019. HDFC Life Insurance Company Limited was incorporated in 2000 and is headquartered in Mumbai, India.
HDFC Life Insurance Company Limited operates as a subsidiary of HDFC Bank Limited.
Stock analysis
HDFC Life Insurance Company Limited (HDFCLIFE) currently trades at ₹543.80, while our model-based Fair Value estimate is ₹77.75, 86% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of ₹113.66 per share, and 0 of the 6 models we run sit above the ₹543.80 price.
Bear case: the Dividend Discount group reads lowest at ₹31.32, and 6 of the 6 models stay below the price. Data coverage for this calculation is low.
Scenario range: ₹70.15 (bear) to ₹97.11 (bull), the price of ₹543.80 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 49/100 (below-average quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
HDFC Life Insurance Company Limited reported revenue of ₹1.0T in FY2026 versus ₹674B in FY2022, a compound +10.4%/yr. Reported net income was ₹19.1B in FY2026, compounding +9.6%/yr from FY2022.
Key figures
Market cap ₹1.2T (≈ $12.4B) Large · P/E ratio 57.4 · P/S ratio 1.09 · EPS (TTM) ₹9.47 · Dividend yield 0.7% · Net margin 1.9% · Return on equity 11.3% · Return on assets (EBIT) 0.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 40 out of 100 (medium confidence).
What moves the price
The share trades about 30% below its 52-week high and 6% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −41% fair-value upside, at −86%, HDFCLIFE screens richer than that median.
Fair Value models
Bear₹70.15Fair Value ₹77.75Bull₹97.11
Price ₹543.80 · Downside -85.7%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (₹3.30 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.73/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+11.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.5%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.9%
Start year 2021 (pandemic)
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+7.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+6.4%
Dividend (yield on the price)0.7%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.6.4% vs 8.1%, steady
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.2% → 2%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−22.4%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+12.2%
Yearly sales growth analysts expect, extended to five years.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about −25.4% a year for the price and +7.8% for the forecasts.
AI conclusion: Distribution scale via bancassurance delivers reach yet remains offset by low margins typical of competitive life insurance.
Main risk: Heavy reliance on the bancassurance channel with parent HDFC Bank for a large share of retail sales could face limits if regulators cap parent-bank contributions or if the bank prioritises other activities.
Bull case: The company could accelerate growth in agency, broker and direct channels while using its AI capabilities to enhance efficiency and customer reach across a broader mix of distribution methods.
Bear case: Regulatory caps on parent-bank bancassurance or reduced bank focus could sharply cut volumes through the main channel, forcing rapid and costly expansion of other channels with potentially lower margins.
HDFC Life relies heavily on its bancassurance channel for retail sales, which has shown signs of recovery after earlier weakness. Yet the company itself highlights that upcoming IRDAI changes to distribution and commission rules could disrupt sales channels in the near term. Our models currently see the stock as overvalued. Will tighter rules mainly squeeze margins through the bank channel or push the business toward more resilient product mixes and direct channels?
Compare HDFC Life Insurance Company Limited with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Insurance - Life · 77 stocks
Beats the industry median on 4/14 measures
Overall it trails its industry peers.
Valuation
Quality Score49 · Below median
Fair Value upside−85.7% · Bottom 25%
Profitability
Return on equity (12 months)11.3% · Below median
Return on assets0.5% · Below median
Net margin (12 months)1.9% · Bottom 25%
Operating margin (12 months)2.4% · Bottom 25%
Growth and dividend
Revenue growth (quarter YoY)18.5% · Above median
Dividend yield (12 months)0.7% · Bottom 25%
Balance sheet
Debt / equity0.18× · Below median
Valuation Multiplesvs Insurance - Life median · lower = cheaper
P/E (12 months)57.4× · Priciest 25%
P/B6.61× · Priciest 25%
P/S (12 months)1.09× · Cheaper than median
Price / free cash flow3.2× · Cheaper than median
EV/EBITDA46.6× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 6
FUTURE (revenue growth)93· sector 44
PAST (return on equity)45· sector 52
HEALTH (low debt)91· sector 87
DIVIDEND (yield)15· sector 55
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "HDFC Life Insurance Company Limited Fair Value". https://www.fairvalue-calculator.com/stock/HDFCLIFE
Frequently asked questions
Is HDFC Life Insurance Company Limited (HDFCLIFE) overvalued or undervalued?
As of Nov 4, 2026, our model estimates a fair value of ₹77.75 versus a price of ₹543.80, about 86% lower (overvalued).
What is the fair value of HDFCLIFE?
Our model-based fair value for HDFC Life Insurance Company Limited is ₹77.75 (as of Nov 4, 2026), built from audited fundamentals. The current price: ₹543.80.
What is the quality score of HDFCLIFE?
HDFC Life Insurance Company Limited has a Quality Score of 49/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for HDFC Life Insurance Company Limited (HDFCLIFE)?
Our model-based price target is the fair value of ₹77.75 (as of Nov 4, 2026) from 6 valuation models. Cautious scenario ₹70.15, optimistic scenario ₹97.11. It is a calculation from audited fundamentals, not an analyst target.
What is the HDFC Life Insurance Company Limited stock forecast for 2026?
Our models put fair value at ₹77.75, about 86% lower versus a price of ₹543.80 (overvalued). Cautious scenario ₹70.15, optimistic scenario ₹97.11. The calculation is refreshed regularly with new filings.
What is the revenue of HDFC Life Insurance Company Limited (HDFCLIFE)?
HDFC Life Insurance Company Limited reported trailing-twelve-month revenue of about ₹1.1T (latest available figure, as of Nov 4, 2026).
Does HDFC Life Insurance Company Limited pay a dividend?
HDFC Life Insurance Company Limited currently shows a dividend yield of 0.73% relative to its recent price (as of Nov 4, 2026).
What growth is priced into HDFC Life Insurance Company Limited (HDFCLIFE)?
For today's price to be fair in a discounted-cash-flow model, HDFC Life Insurance Company Limited would have to grow free cash flow by -22.4 % per year for five years (discount rate 10.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +6.9 % per year. As of Nov 4, 2026.
What discount rate (WACC) does the fair value of HDFCLIFE use?
Our models discount HDFC Life Insurance Company Limited at 10.4 %: a base by market capitalisation (large), damped by beta 0.51, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For HDFC Life Insurance Company Limited that is -22.4 % per year a year over ten years, using the same discount rate (10.4 %) and the same formula as our fair value.
How much growth has HDFC Life Insurance Company Limited (HDFCLIFE) delivered so far?
Over the past 5 years revenue at HDFC Life Insurance Company Limited grew +6.9 % a year. The price currently implies -22.4 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of HDFC Life Insurance Company Limited (HDFCLIFE) growing?
The median revenue growth in the sector is +9.4 % a year. That is the yardstick for the growth priced into HDFC Life Insurance Company Limited (-22.4 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of HDFC Life Insurance Company Limited (HDFCLIFE)?
The free-cash-flow yield on the price is 30.94 %: that much free cash flow HDFC Life Insurance Company Limited produces per unit of market value. When it exceeds the discount rate of our models (10.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of HDFC Life Insurance Company Limited (HDFCLIFE)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For HDFC Life Insurance Company Limited it is ₹77.75 per share (as of Nov 4, 2026), against a price of ₹543.80. It is the blended result of 6 valuation models (cash flow, earnings, asset, dividend).
Is HDFC Life Insurance Company Limited stock overvalued or undervalued in 2026?
As of Nov 4, 2026, HDFCLIFE trades above its calculated fair value: price ₹543.80, fair value ₹77.75, a gap of about −86% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of HDFCLIFE?
No. The price is what the market pays today (₹543.80); the fair value is what the company's own numbers justify (₹77.75). For HDFC Life Insurance Company Limited the two are ₹466.05 per share apart. That gap is exactly why we show both numbers side by side.
How much is HDFC Life Insurance Company Limited worth?
The market values HDFC Life Insurance Company Limited at about ₹1.2T (market capitalisation, as of Nov 4, 2026). Per share that is ₹543.80; our models calculate a fair value of ₹77.75 per share.
What do the bullish and bearish scenarios say about HDFCLIFE?
Our models span a range for HDFC Life Insurance Company Limited: cautious scenario ₹70.15, base ₹77.75, optimistic ₹97.11 per share (as of Nov 4, 2026, price ₹543.80). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of HDFCLIFE?
HDFC Life Insurance Company Limited trades at a price-to-earnings ratio of 57.4 (as of Nov 4, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹77.75 is built from several models across several years. Median P/E at fiscal year-end, 9 fiscal years (2018 to 2026), reported earnings, FY2026 ex one-offs: 81.5. Other multiples: P/B 6.6, P/S 1.1, EV/EBITDA 46.6.
How solid is the balance sheet of HDFC Life Insurance Company Limited (HDFCLIFE)?
Balance-sheet figures for HDFC Life Insurance Company Limited (as of Nov 4, 2026): return on equity 11.3%, debt of 0.18 per unit of equity. They feed the Quality Score of 49/100, which measures business quality independently of the share price.
How far is HDFCLIFE from its 52-week high?
HDFC Life Insurance Company Limited trades at ₹543.80, about 30% below its 52-week high of ₹782.03 and 6% above the low of ₹513.60 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of ₹77.75 is for.
Which stocks are comparable to HDFC Life Insurance Company Limited?
From the same area (Financial Services) we also value Ping An Insurance (Group) Company, China Life Insurance Company, AIA Group, Manulife Financial Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is HDFC Life Insurance Company Limited stock attractive at the current price?
The data as of Nov 4, 2026: price ₹543.80, calculated fair value ₹77.75 (−86%), Quality Score 49/100, from 6 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of HDFCLIFE calculated?
We run HDFC Life Insurance Company Limited through 6 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹77.75, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. HDFC Life Insurance Company Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of HDFC Life Insurance Company Limited (HDFCLIFE)?
The closing price on Nov 5, 2026 was ₹543.80. Our model-based fair value is ₹77.75, about 86% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with HDFC Life Insurance Company Limited right now?
The price sits above even our optimistic bull case (₹97.11). The favourable scenario is already priced in. Weak quality (49/100) and above fair value at the same time, the margin of safety is missing on both counts. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of HDFC Life Insurance Company Limited (HDFCLIFE) come from?
Earnings per share at HDFC Life Insurance Company Limited grew +7.9 % a year from 2015 to 2026. Broken into its drivers: revenue per share +15.0 %, EBIT margin −6.1 %, tax rate +0.0 %, residual (interest, one-offs) +0.0 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of HDFC Life Insurance Company Limited
How large is the market capitalisation of HDFC Life Insurance Company Limited (HDFCLIFE)?
The market capitalisation of HDFC Life Insurance Company Limited is ₹1.2T (≈ $12.4B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of HDFC Life Insurance Company Limited (HDFCLIFE)?
The price-to-sales ratio of HDFC Life Insurance Company Limited is 1.09 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of HDFC Life Insurance Company Limited (HDFCLIFE)?
Earnings per share at HDFC Life Insurance Company Limited are ₹9.47 (price ÷ EPS = P/E 57.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of HDFC Life Insurance Company Limited (HDFCLIFE)?
The dividend yield of HDFC Life Insurance Company Limited is 0.7% (payout 42.1%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of HDFC Life Insurance Company Limited (HDFCLIFE)?
The net margin of HDFC Life Insurance Company Limited is 1.9% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of HDFC Life Insurance Company Limited (HDFCLIFE)?
The return on equity (ROE) of HDFC Life Insurance Company Limited is 11.3% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of HDFC Life Insurance Company Limited (HDFCLIFE)?
On an EBIT basis the return on assets of HDFC Life Insurance Company Limited is 0.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of HDFC Life Insurance Company Limited (HDFCLIFE)?
The operating margin of HDFC Life Insurance Company Limited is 2.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at HDFC Life Insurance Company Limited (HDFCLIFE)?
Revenue at HDFC Life Insurance Company Limited is growing +18.5% versus a year earlier (3y avg +12.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at HDFC Life Insurance Company Limited (HDFCLIFE)?
Earnings per share at HDFC Life Insurance Company Limited are growing +12.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does HDFC Life Insurance Company Limited (HDFCLIFE) carry?
The net debt of HDFC Life Insurance Company Limited is ₹11.1B (fiscal year 2026, ≈ 0.0 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Nov 4, 2026