Star Health and Allied Insurance Company Limited Valuation
STARHEALTH · Financial Services · Current price ₹548.75
Is Star Health and Allied Insurance Company Limited undervalued?
We estimate the fair value of Star Health and Allied Insurance Company Limited at ₹146 per share, against a market price of ₹563. That puts the share price about -74.1% above our estimate, at medium confidence. This is our view of what the business is worth, not a target price or a forecast of where the share price will go.
How this fair value is calculated
This estimate comes from 2 methods: Relative P/B (₹159), Residual income (excess return on book) (₹117). Each is weighted by how well its inputs held up for this company. The full working, including the assumptions and what data was missing, is set out below.
The range around this estimate
Our estimate for Star Health and Allied Insurance Company Limited spans ₹117 to ₹161. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
Valuation multiples
Star Health and Allied Insurance Company Limited trades at a P/E of 58.0x and a P/B of 4.5x, with a dividend yield of 0.0%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.
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 methodologyUnderstand the ratios
More 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.