Hanwha Life Insurance한화생명
088350 · KOSPI · ₩088350 · 한화생명
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
₩8,855
vs the current price (₩4,050)
- Cost of equity
- 9.6%
- Fair P/B
- 0.47×
- P/B now
- 0.22×
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
- ₩3,478
- −14.1%
- Base
- ₩8,855
- +118.6%
- Bull
- ₩15,859
- +291.6%
Bear: ROE 2 points lower and cost of equity 1 point higher. Bull: the opposite.
Assumptions
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Business
- 5.6%
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
- 4.11%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-28.
- 1
How much the share moves when the market moves: 1 means just like the market.
Default: 1.0. Measured beta is 0.78, 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)
- ₩24T
- Equity (book value)
- ₩16T
- Book value per share ₩18,714
- Shares
- 868,530,000
- Share price
- ₩4,050
- Market cap
- ₩3.5T
Sensitivity
Fair value per share as two inputs change; the middle is the current case.
| Cost of equity ↓ · ROE → | 3.6% | 4.6% | 5.6% | 6.6% | 7.6% |
|---|---|---|---|---|---|
| 8.6% | ₩4,531 | ₩7,363 | ₩10,195 | ₩13,027 | ₩15,859 |
| 9.1% | ₩4,213 | ₩6,845 | ₩9,478 | ₩12,111 | ₩14,744 |
| 9.6% | ₩3,936 | ₩6,395 | ₩8,855 | ₩11,315 | ₩13,775 |
| 10.1% | ₩3,693 | ₩6,001 | ₩8,309 | ₩10,617 | ₩12,925 |
| 10.6% | ₩3,478 | ₩5,652 | ₩7,827 | ₩10,001 | ₩12,175 |
Now (TTM)
- Market cap
- ₩3.5T
- Enterprise value
- ₩28T
- P/E
- 3.3×
- P/B
- 0.2×
- P/S
- —
- EV/EBITDA
- —
- Dividend yield
- 0.0%
Over time (at each year end)
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Price | ₩3,255 | ₩2,460 | ₩2,830 |
| Market cap | ₩2.8T | ₩2.1T | ₩2.5T |
| P/E | 4.4× | 2.9× | 3.2× |
| P/B | 0.2× | 0.2× | 0.2× |
| P/S | — | — | — |
| EV/EBITDA | — | — | — |
| Dividend yield | 0.0% | — | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| Hanwha Life Insurance | 3.3× | 0.2× | — | — | 0.0% |
| Samsung Life Insurance | 18.2× | 0.4× | — | — | 0.0% |
| Samsung Fire & Marine Insurance | 12.4× | 0.7× | — | — | 3.3% |
| DB Insurance | 6.4× | 0.8× | — | — | 4.3% |
| Hyundaimarine&Fireinsuranceco | 3.1× | 0.5× | — | — | 0.0% |
| Seoul Guarantee Insurance | 9.9× | 0.6× | — | — | 6.6% |
| Korean Reinsurance | 6.9× | 0.6× | — | — | 4.2% |
| Similar companies (median) | 8.4× | 0.6× | — | — | 3.7% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: Hanwha Life Insurance / 한화생명 / 088350 / KRX:088350
Source: KRX statistical information