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Ping An Insurance Group Co of China Ltd (601318) Fair Value & Analysis

Financial Services · CN · Market cap 897B CNY (≈ $134B) · ISIN CNE000001R84

What is Ping An Insurance Group Co of China Ltd really worth?

PA Ping An Insurance Group Co of China Ltd 601318 · SHG
Price¥58.24
Fair Value¥84.72
Upside+45.5%
Quality61/100

A solid business, trading 31% below our fair value of ¥84.72.

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Strengths

Solidly profitable · 13.9% net margin
Moderate debt · generates free cash flow
Ranks above peers (12/15)

Risks

!Weak Growth (revenue 5y −4.3 %/yr)
!Moderate moat 61/100

For context

·4.64% dividend yield
Evidence: High Range ¥63.54 – ¥105.91

Fair value as of: Sep 1, 2026

From 6 valuation models · updated 4 days ago

Share price +7.8% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case (¥63.54). The market is more pessimistic than our downside scenario.
  • Solid quality (61/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

¥71.91 ¥30.15 Fair Value ¥84.72 Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 1, 2026.

How to read this chart

60‑month range ¥30.15 – ¥71.91 · fair‑value band ¥63.54 – ¥105.91 · the ¥58.24 price screens below the ¥84.72 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 1, 2026.

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Analysis

Ping An Insurance Group Co of China Ltd (601318) currently trades at ¥58.24, while our model-based Fair Value estimate is ¥84.72, implying the stock looks roughly 31.3% undervalued today. The Quality Score stands at 61/100 (solid quality), in the Financial Services sector. Bull case: the Multiples group reads highest at a median of ¥77.35 per share, and 3 of the 6 models we run sit above the ¥58.24 price. Bear case: the Asset-Based group reads lowest at ¥37.02, and 3 of the 6 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Ping An Insurance Group Co of China Ltd generated revenue of 953B CNY at a net margin of 13.9%. Revenue declined 3.3% year over year. It earns a return on equity of 11.3%. Net debt stands at 1.2T CNY. Fundamentals as of Sep 1, 2026

Our scenario range runs from ¥63.54 (bear case) to ¥105.91 (bull case); at ¥58.24, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 22% below its 52-week high and 15% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −35% fair-value upside, at 45%, 601318 screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly ¥3.08 per share, which is 3.6 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income best evidence ¥54.01 ¥68.85 ¥177.21 65
DDM Multi-Stage ¥24.72 ¥44.21 ¥56.24 62
Gordon GGM ¥24.72 ¥53.97 ¥90.81 61
All 6 models by family
Dividend Discount
Gordon GGM ¥24.72 ¥53.97 ¥90.81 61
DDM Multi-Stage ¥24.72 ¥44.21 ¥56.24 62
Multiples
P/E Multiple ¥72.57 ¥96.76 ¥120.95 61
P/B Multiple ¥58.01 ¥77.35 ¥96.68 53
Asset-Based
NCAV (Graham) ¥27.62 ¥37.02 ¥55.25 52
Economic Profit
Residual Income best evidence ¥54.01 ¥68.85 ¥177.21 65

Widest divergence: Multiples (¥77.35) versus Asset-Based (¥37.02). Highest evidence: Residual Income (65).

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Key figures & financial health

P/E ratio 7.4 as of Jun 7, 2026
P/S ratio 0.94 P/E × margin
EPS (TTM) ¥7.25 price ÷ EPS = P/E 7.4
Dividend yield 4.6% payout 37.2%
Net margin 12.7% FY2025
Return on equity 11.3% TTM
More key figures
Profitability
Return on assets (EBIT) 6.7% avg 5y
Operating margin 49.0% TTM
Growth
Revenue (TTM) 953B CNY TTM
Revenue growth (YoY) −3.3% 3y avg +6.2%
EPS growth (YoY) −13.2%
Balance sheet & cash flow
Free cash flow 469B CNY FY2025
Net debt 1.2T CNY FY2025 · ≈ 2.5 yrs of FCF

Figures from reported company fundamentals · as of Sep 1, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 61/100

Of which business quality 58 · Market factors (momentum, volatility) 53

Profitability 30
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 22
Balance sheet, leverage, solvency risk
Investment 79
Disciplined investing over empire-building
Low Volatility 81
Calm price path (market factor)
Momentum 42
Price trend over the last 3–12 months (market factor)
52W Momentum 41
Distance to the 52-week high (market factor)
Net Issuance 78
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Ping An Insurance (Group) Company of China, Ltd. provides financial products and services in the People's Republic of China. It operates through Life and Health Insurance; Property and Casualty Insurance; Banking; Asset Management; and Finance Enablement segments.

Full company description

Ping An Insurance (Group) Company of China, Ltd. provides financial products and services in the People's Republic of China. It operates through Life and Health Insurance; Property and Casualty Insurance; Banking; Asset Management; and Finance Enablement segments. The company offers life insurance products, including term, whole-life, endowment, annuity, investment-linked, universal life, and health care and medical insurance; property and casualty insurance, such as auto insurance, non-auto insurance, accident, and health insurance. It also undertakes loan and intermediary business with corporate customers and retail customers. In addition, the company provides wealth management and credit card services to individual customers; trust services, brokerage services, trading services, investment banking services, investment management services, finance lease business, and other asset management services; and financial and daily-life services through internet platforms comprising financial transaction information service platform, and health care service platform. Further, it is involved in the real estate investment and management; expressway operation; production and sale of consumer chemicals; logistics and real estate activities; consulting services; warehousing; IT services; infant products; and hospital management. Ping An Insurance (Group) Company of China, Ltd. was incorporated in 1988 and is based in Shenzhen, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Ping An Insurance Group Co of China Ltd reported revenue of 1.1T CNY in FY2025 versus 1.3T CNY in FY2021, a compound −4.5%/yr. Reported net income was 135B CNY in FY2025, compounding +7.3%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
1.1T CNY
Latest YoY
+10.0%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.2%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−4.3%
Avg. revenue growth/yr (22Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+26.2%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+3.1% (−1.5 + 4.6)
Revenue −4.5%/yr
FY21 1.3T CNY
FY22 885B CNY
FY23 907B CNY
FY24 964B CNY
FY25 1.1T CNY
Net income +7.3%/yr
FY21 102B CNY
FY22 111B CNY
FY23 85.7B CNY
FY24 127B CNY
FY25 135B CNY
Character of growth · EPS growth decomposed (2014-2025) +9.0 % p.a.
Revenue per share +4.0 %

of which total revenue +4.3 % · buybacks/dilution −0.3 %

EBIT margin −2.6 %
Tax rate +2.1 %
Residual (interest, one-offs) +5.4 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Ping An Insurance Group Co of China Ltd Fair Value". https://www.fairvalue-calculator.com/stock/601318

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Insurance - Life · 96 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 62 · Top 25%
Fair Value upside +46% · Above median
Return on equity (TTM) 11% · Above median
Return on assets 1% · Below median
Net margin (TTM) 14% · Above median
Operating margin (TTM) 49% · Top 25%
Revenue growth −3% · Below median
Dividend yield (TTM) 4.6% · Top 25%
Debt / equity 1.35× · Higher than 75% of peers

Valuation Multiples vs Insurance - Life median · lower = cheaper

P/E (TTM) 7.4× · Cheaper than median
P/B 0.90× · Cheaper than median
P/S (TTM) 0.94× · Cheaper than median
P/FCF 0.3× · Cheaper than median
EV/EBITDA 5.9× · Cheaper than median
PEG 0.51× · Cheaper than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE94 · sector 18
FUTURE0 · sector 43
PAST45 · sector 43
HEALTH33 · sector 84
DIVIDEND93 · sector 54

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Insurance - Life stocks, each showing price versus our Fair Value estimate (as of Sep 1, 2026).

Stock Price Fair Value vs Fair Value
China Life Insurance Company 601628 ¥37.03 ¥49.98 +35%
AIA Group 1299 HK$73.00 HK$33.57 −54%
Manulife Financial Corporation MFC C$59.80 C$38.80 −35%
Aflac Incorporated AFL $116.52 $74.34 −36%
Great-West Lifeco Inc GWO C$90.25 C$39.53 −56%
MetLife, Inc MET $96.51 $68.27 −29%
Life Insurance Corporation LICI ₹412.15 ₹392.93 −5%
China Pacific Insurance (Group) Co 601601 ¥30.20 ¥57.51 +90%
Samsung Life Insurance Co 032830 301,000 KRW 191,293 KRW −36%
Power Corporation POW C$94.43 C$31.01 −67%

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Frequently asked questions

Is Ping An Insurance Group Co of China Ltd (601318) overvalued or undervalued?
As of Sep 1, 2026, our model estimates a fair value of ¥84.72 versus a price of ¥58.24, about +45% upside (undervalued).
What is the fair value of 601318?
Our model-based fair value for Ping An Insurance Group Co of China Ltd is ¥84.72 (as of Sep 1, 2026), built from audited fundamentals. The current price: ¥58.24.
What is the quality score of 601318?
Ping An Insurance Group Co of China Ltd has a Quality Score of 61/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Ping An Insurance Group Co of China Ltd (601318)?
Ping An Insurance Group Co of China Ltd reported trailing-twelve-month revenue of about 953B CNY (latest available figure, as of Sep 1, 2026).
What is the net profit margin of 601318?
The net profit margin of Ping An Insurance Group Co of China Ltd is about 13.9%, meaning it keeps roughly 13.9% of revenue as net income. Based on the latest reported figures.
Does Ping An Insurance Group Co of China Ltd pay a dividend?
Ping An Insurance Group Co of China Ltd currently shows a dividend yield of about 4.64% relative to its recent price (as of Sep 1, 2026).
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