Lotte Non-Life Insurance롯데손해보험
000400 · KOSPI · ₩000400 · 롯데손해보험
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
₩3,923
vs the current price (₩2,425)
- Cost of equity
- 9.5%
- Fair P/B
- 1.23×
- P/B now
- 0.76×
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
- ₩2,709
- +11.7%
- Base
- ₩3,923
- +61.8%
- Bull
- ₩5,510
- +127.2%
Bear: ROE 2 points lower and cost of equity 1 point higher. Bull: the opposite.
Assumptions
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Business
- 11.2%
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 0.6, 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)
- ₩228B
- Equity (book value)
- ₩994B
- Book value per share ₩3,202
- Shares
- 310,336,320
- Share price
- ₩2,425
- Market cap
- ₩753B
Sensitivity
Fair value per share as two inputs change; the middle is the current case.
| Cost of equity ↓ · ROE → | 9.2% | 10.2% | 11.2% | 12.2% | 13.2% |
|---|---|---|---|---|---|
| 8.5% | ₩3,542 | ₩4,034 | ₩4,526 | ₩5,018 | ₩5,510 |
| 9.0% | ₩3,289 | ₩3,746 | ₩4,203 | ₩4,660 | ₩5,117 |
| 9.5% | ₩3,070 | ₩3,497 | ₩3,923 | ₩4,349 | ₩4,776 |
| 10.0% | ₩2,878 | ₩3,278 | ₩3,678 | ₩4,078 | ₩4,478 |
| 10.5% | ₩2,709 | ₩3,086 | ₩3,462 | ₩3,838 | ₩4,214 |
Now (TTM)
- Market cap
- ₩753B
- Enterprise value
- ₩980B
- P/E
- 45.7×
- P/B
- 0.8×
- P/S
- —
- EV/EBITDA
- 65.4×
- Dividend yield
- 0.0%
Over time (at each year end)
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Price | ₩1,739 | ₩2,015 | ₩2,390 |
| Market cap | ₩540B | ₩625B | ₩742B |
| P/E | 10.5× | 25.8× | 2.5× |
| P/B | 0.9× | 0.8× | 0.6× |
| P/S | — | — | — |
| EV/EBITDA | 4.5× | 9.3× | 1.0× |
| Dividend yield | 0.0% | — | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| Lotte Non-Life Insurance | 45.7× | 0.8× | — | 65.4× | 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: Lotte Non-Life Insurance / 롯데손해보험 / 000400 / KRX:000400
Source: KRX statistical information