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Is this Large Market Cap Stock target price reasonable for China Life Insurance Co. Ltd. (NYSE:LFC)?

The company in question is, China Life Insurance Co. Ltd. (NYSE:LFC) currently with a stock price of 13.09 (-1.65% today). The market cap for China Life Insurance Co. Ltd. is 85220.09, and is in the sector Financial, and Life Insurance industry. The target price for China Life Insurance Co. Ltd. is 17.46. Currently China Life Insurance Co. Ltd. is trading with a P/E of 14.34, and a forward P/E of 25.67. Average volume for China Life Insurance Co. Ltd. is 557.71 and so far today it is 343842.

Performance in the last year for China Life Insurance Co. Ltd. has been -32.32%. For EPS growth, China Life Insurance Co. Ltd. has seen a growth of 7.70%, and is looking to grow in the next year to -12.07%. More long term stats show that EPS growth has been 0.60% over the last five years and could be -12.60% for the next five years. China Life Insurance Co. Ltd. has seen sales growth quarter over quarter at 3.50%, with EPS growth quarter over quarter at -62.50%. The 20-day simple moving average is 2.53%, with the 200-day simple moving average coming to 10.25%.

Since the IPO date for China Life Insurance Co. Ltd. on the 12/17/2003, China Life Insurance Co. Ltd. has seen performance year to date to be -18.14%. With China Life Insurance Co. Ltd. trading at 13.09, the dividend yield is 2.44%, and the EPS is 0.91.

So could China Life Insurance Co. Ltd., be undervalued? Well as said before P/E is 14.34. The PEG is *TBA, P/S is 1.13 and the P/B is at 1.54. The P/cash is 7.53, with P/free cash flow at *TBA.

China Life Insurance Co. Ltd. ability to deal with debt shows that the current ratio is *TBA, and the quick ratio is *TBA. This is with long term debt/equity at 0.22, and total debt/equity at 0.22.

In terms of margins, China Life Insurance Co. Ltd. has a gross margin of *TBA, an operating margin of 9.50% and a profit margin of 6.80%.Payout ratio for China Life Insurance Co. Ltd. is 34.20%. Return on assets come to 1.50% with return on investment coming to 9.50%.

Insider ownership for China Life Insurance Co. Ltd., is at 68.80% and institutional ownership comes to 1.10%. Outstanding shares are at 6510.32. While shares float is 1743.24. The float short is currently 0.13%, and short ratio is 4.03.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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