How Do Analysts See SBI Life Insurance Company Limited (NSE:SBILIFE) Performing In The Next 12 Months?
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In March 2019, SBI Life Insurance Company Limited (NSE:SBILIFE) announced its earnings update. Overall, the consensus outlook from analysts appear in-line with its track record, as upcoming earnings growth is expected to be 15% next year, similar to the range of average earnings growth for the past five years of 14% per year. Currently with trailing-twelve-month earnings of ₹13b, we can expect this to reach ₹15b by 2020. Below is a brief commentary on the longer term outlook the market has for SBI Life Insurance. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for SBI Life Insurance
How is SBI Life Insurance going to perform in the near future?
The longer term expectations from the 19 analysts of SBILIFE is tilted towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To understand the overall trajectory of SBILIFE's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
This results in an annual growth rate of 15% based on the most recent earnings level of ₹13b to the final forecast of ₹21b by 2022. This leads to an EPS of ₹19.15 in the final year of projections relative to the current EPS of ₹13.27. By the end of 2022, analysts are expecting earnings to outpace revenue, and margins to expand from the current 3.0% to 3.0%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For SBI Life Insurance, there are three key aspects you should further examine:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is SBI Life Insurance worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SBI Life Insurance is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of SBI Life Insurance? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.