Today one of my friend asked me about the recently announced LIC IPO as to whether to apply or not in the IPO. I told him "you should study about the company and its business first and then take the decision". The next day he again called me and said that he will not be applying in this IPO. I asked him what led him to reach at this conclusion, and he replied that "Bro, it is valued at a PE Ratio of more than 200 times as per F.Y. 2020-21 and is hence highly overvalued". Then I told him, "Bro, you cannot value a insurance business on its PE Ratio rather for these kind of businesses a special ratio is used as a valuation metric which is Price to Embedded value ratio and as per that it is valued at 1.11 times it's embedded value". Then he said, "Bro i didn't knew that". Then I replied, "Now you know that so you should consider this and take your decision". And our conversation ended on that note. As you can see in this image which