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The market asks roughly as much of HDFC Life as of SBI Life.
At current prices, buyers of HDFC Life are assuming about 16.5× new-business multiple against 25.0× in its own record; for SBI Life it is 14.8× against 25.0×. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: both on embedded value.
- Size: SBI Life is worth about 1.4 times HDFC Life on the stock market.
- What to watch: value of new business at HDFC Life; value of new business at SBI Life.
| HDFC Life | SBI Life | |
|---|---|---|
| Price | ₹592 | ₹1,790 |
| Market cap | ₹1.29L Cr | ₹1.80L Cr |
| P/E | 62.9 | 67.6 |
| P/B | 7.25 | 9.41 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Embedded value | Embedded value |
01Two businesses
A bank-backed private life insurer
HDFC Life Insurance is one of India's largest private life insurers and a subsidiary of HDFC Bank since the HDFC merger in 2023. It sells savings, protection, annuity and pension policies, much of it through HDFC Bank's branches, along with agents and other partners. It merged Exide Life into itself in 2022.
Life insurance through India's biggest bank
SBI Life Insurance is a subsidiary of State Bank of India and one of India's largest private life insurers by new premiums. It sells savings, protection, annuity and pension policies, mostly through SBI's vast branch network, with a growing agency force alongside.
02The records side by side
Full ten-year tables and charts are on each company's page: HDFC Life · SBI Life.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Value of new businessHow much value each year's new policies add is the main driver of growth.
- New-business marginsProtection and non-participating products earn more than plain savings policies.
- Value of new businessThe value each year's new policies add drives growth.
- Product mixMore protection and non-participating products lift margins.
05What could go wrong
- RegulationRules on commissions and surrender values can squeeze margins.
- Tax changesChanges to tax breaks on insurance savings can reduce demand.
- RegulationRules on commissions and surrender values can squeeze margins.
- Channel dependenceHeavy reliance on SBI's branches concentrates risk.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is HDFC Life or SBI Life better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, HDFC Life trades at 62.9 times earnings and 7.25 times book value, and SBI Life at 67.6 times earnings and 9.41 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between HDFC Life and SBI Life?
HDFC Life Insurance is one of India's largest private life insurers and a subsidiary of HDFC Bank since the HDFC merger in 2023. SBI Life Insurance is a subsidiary of State Bank of India and one of India's largest private life insurers by new premiums.
Are HDFC Life and SBI Life valued the same way?
Yes — both on embedded value, so their workings compare like for like.
What does today's price assume for HDFC Life and SBI Life?
Worked backwards from the share price, HDFC Life needs about 16.5× new-business multiple and SBI Life about 14.8× new-business multiple, against 25.0× and 25.0× in their own records.