Star Health and Allied Insurance Company Limited DCF Valuation
STARHEALTH · Financial Services · Current price ₹548.75
Star Health and Allied Insurance Company Limited cash-flow valuation
Our residual income (excess return on book) values Star Health and Allied Insurance Company Limited at ₹117 per share. Book value plus the present value of returns earned above the 10.6% cost of equity. It carries 20% of the weight in our published estimate of ₹146. A discounted cash flow is only as good as the cash-flow path it assumes, so the assumptions behind it are listed in full below.
Try your own assumptions
Prefer to build the discounted cash flow yourself? The DCF calculator below opens pre-filled with Star Health and Allied Insurance Company Limited's reported free cash flow, net debt and share count, so you can set your own growth and discount rate.
How we got this fair value
Every number below is part of the same estimate for Star Health and Allied Insurance Company Limited. Nothing here is a target price or a forecast of where the share price will go.
Workable, with real gaps. Weigh it alongside your own view rather than on its own.
Estimate range ₹117 – ₹161
Why this method for this business
The justified P/B and relative P/B models are appropriate for valuing a financial services company like Star Health, which is equity-sensitive and has a clear book value. The residual income model complements these by capturing the excess returns over the cost of equity.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
Book value plus the present value of returns earned above the 10.6% cost of equity
implied value is <0.2× the price (likely a data error)
- DCF is not suitable for insurance companies due to the complexity of cash flow forecasting and the nature of the business
- EV/EBITDA is not used as the data is not robust enough for this sector
What was missing
- Lack of detailed underwriting profit data
- Limited forward EBITDA estimates
- Insufficient peer data for more precise P/B normalization
What drives it
8 inputs, grouped by how strong each claim is
- Peer-median P/B
- 1.32×
- Peers used
- 419
- Book value / share
- 120.09 ₹/share
- ROE (normalized)
- 9.6%
- Book value / share
- 120.1 ₹
peer-median
peer-median
computed
computed
reported
- Cost of equity
- 10.6%
building-block
- Moat
- None
- Excess-return horizon
- 3 yrs
computed
computed
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Star Health and Allied Insurance Company Limited: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.
Estimated 14 Sept 2026. Re-run as new financials and news arrive.
How we value stocks
We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.
Read the full fair-value methodologyMore on Star Health and Allied Insurance Company Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.