Is Star Health Insu overvalued or undervalued?

Oct 10 2025 08:06 AM IST
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As of October 9, 2025, Star Health Insurance is fairly valued with a PE ratio of 47.60 and competitive metrics compared to peers, while its recent stock performance has outpaced the Sensex, indicating positive market sentiment.
As of 9 October 2025, the valuation grade for Star Health Insurance has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 47.60, an EV to EBIT of 12.24, and a ROE of 8.35%.

In comparison to its peers, Bajaj Finance is considered very expensive with a PE of 36.57, while Life Insurance stands out as very attractive with a PE of 11.62. Star Health's valuation metrics suggest it is positioned competitively within the insurance sector. Notably, the company's recent stock performance has outpaced the Sensex over the past week and month, indicating a positive market sentiment despite its longer-term underperformance.
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