A like-for-like valuation of SBI LIFE INSURANCE COMPANY (SBILIFE) and State Bank of India (SBIN), each built from its own filed accounts and set side by side — price against estimated worth, on the same measures.
SBI LIFE INSURANCE COMPANY and State Bank of India screen at similar value right now.
SBI LIFE INSURANCE COMPANY trades 49% below our estimate of fair value, and State Bank of India 51% below our estimate of fair value. The two are close enough that neither stands out as the cheaper of the pair on price against estimated worth alone.
Every figure below is drawn from each company's own filed statements. Estimated fair value is the per-share figure our engine will stand behind; where a business needs a model that does not reduce to one number, it is shown as “—”.
| SBI LIFE INSURANCE COMPANYSBILIFE | State Bank of IndiaSBIN | |
|---|---|---|
| Current price | ₹1,654 | ₹968 |
| Market cap | ₹1.67L Cr | ₹8.94L Cr |
| Estimated fair value | ₹2,467 | ₹1,462 |
| Upside to fair value | +49% | +51% |
| P/E | 63.8 | 10.4 |
| P/B | 8.70 | 1.45 |
| Return on equity | —% | —% |
| Debt to equity | — | — |
| Valued on | Embedded value — the correct lens for a life insurer | Excess return — the correct lens for a bank |
Both carry the State Bank name on very different balance sheets.
Worked backwards from today's share price: the rate each company must sustain to justify what it costs, against what its own ten-year record supports.
Same method, same filed accounts — each of these works both companies through to a fair value.
SBI LIFE INSURANCE COMPANY trades 49% below our estimate of fair value, and State Bank of India 51% below our estimate of fair value. The two are close enough that neither stands out as the cheaper of the pair on price against estimated worth alone.
Each company is valued from its own filed financial statements — ten years of results — using the method that fits that business, then set beside the other on price, valuation multiples, return on equity and what today's share price already assumes. It is a like-for-like comparison of the workings, not investment advice.
No — and that is deliberate. SBI LIFE INSURANCE COMPANY is valued on embedded value — the correct lens for a life insurer, State Bank of India on excess return — the correct lens for a bank, because the two businesses do not work the same way. Forcing one model onto both would misstate at least one of them, so each is valued on the lens that fits it and only the conclusions are compared.