Hanwha General Insurance한화손해보험
000370 · KOSPI · ₩000370 · 한화손해보험
Valuation model · P/B vs ROE (excess return)
Banks, insurers and brokers don't suit a cash flow model (borrowing and lending is their business), so we value them on book value and return on equity: P/B vs ROE.
Fair value per share
₩28,052
vs the current price (₩6,270)
- Cost of equity
- 9.5%
- Fair P/B
- 1.05×
- P/B now
- 0.24×
Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal. This is not financial advice.
Bear / Base / Bull
- Bear
- ₩18,488
- +194.9%
- Base
- ₩28,052
- +347.4%
- Bull
- ₩40,556
- +546.8%
Bear: ROE 2 points lower and cost of equity 1 point higher. Bull: the opposite.
Assumptions
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Business
- 9.9%
Yearly profit as a share of shareholders' equity.
Default: average return on equity of the last 3 annual reports.
- 2%
How fast book value and profits grow over the long run.
Default: close to the economy's long-run growth.
Discount rate
- 4.01%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-30.
- 1
How much the share moves when the market moves: 1 means just like the market.
Default: 1.0. Measured beta is 0.74, but against a KOSPI dominated by chipmakers that understates a bank's or insurer's risk, so we use at least the market's.
- 5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Starting point
- Net debt (borrowings and leases − cash and deposits)
- ₩725B
- Equity (book value)
- ₩3.1T
- Book value per share ₩26,660
- Shares
- 116,738,915
- Share price
- ₩6,270
- Market cap
- ₩732B
Sensitivity
Fair value per share as two inputs change; the middle is the current case.
| Cost of equity ↓ · ROE → | 7.9% | 8.9% | 9.9% | 10.9% | 11.9% |
|---|---|---|---|---|---|
| 8.5% | ₩24,170 | ₩28,266 | ₩32,363 | ₩36,459 | ₩40,556 |
| 9.0% | ₩22,445 | ₩26,249 | ₩30,054 | ₩33,858 | ₩37,662 |
| 9.5% | ₩20,950 | ₩24,501 | ₩28,052 | ₩31,603 | ₩35,154 |
| 10.0% | ₩19,642 | ₩22,972 | ₩26,301 | ₩29,630 | ₩32,959 |
| 10.5% | ₩18,488 | ₩21,622 | ₩24,755 | ₩27,889 | ₩31,022 |
Now (TTM)
- Market cap
- ₩732B
- Enterprise value
- ₩1.5T
- P/E
- 2.3×
- P/B
- 0.2×
- P/S
- —
- EV/EBITDA
- —
- Dividend yield
- 0.0%
Over time (at each year end)
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Price | ₩5,560 | ₩4,030 | ₩4,050 |
| Market cap | ₩649B | ₩470B | ₩473B |
| P/E | 2.2× | 1.4× | 1.9× |
| P/B | 0.2× | 0.2× | 0.1× |
| P/S | — | — | — |
| EV/EBITDA | — | — | — |
| Dividend yield | 0.0% | — | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| Hanwha General Insurance | 2.3× | 0.2× | — | — | 0.0% |
| Samsung Life Insurance | 19.3× | 0.4× | — | — | 0.0% |
| Samsung Fire & Marine Insurance | 13.7× | 0.8× | — | — | 3.0% |
| DB Insurance | 6.6× | 0.9× | — | — | 4.1% |
| Hyundaimarine&Fireinsuranceco | 3.2× | 0.6× | — | — | 0.0% |
| Hanwha Life Insurance | 3.4× | 0.2× | — | — | 0.0% |
| Seoul Guarantee Insurance | 9.8× | 0.6× | — | — | 6.6% |
| Similar companies (median) | 8.2× | 0.6× | — | — | 1.5% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: Hanwha General Insurance / 한화손해보험 / 000370 / KRX:000370
Source: KRX statistical information