Is Star Health Insu overvalued or undervalued?

Oct 12 2025 08:11 AM IST
share
Share Via
As of October 10, 2025, Star Health Insurance is considered overvalued with a PE ratio of 47.75, a Price to Book Value of 3.99, and an EV to EBIT of 12.35, significantly higher than its peers, while also showing a low ROE of 8.35% and underperforming the Sensex with a return of -15.51%.
As of 10 October 2025, Star Health Insurance has moved from a fair to an expensive valuation grade. The company is currently overvalued, with a PE ratio of 47.75, a Price to Book Value of 3.99, and an EV to EBIT of 12.35. Compared to its peers, Bajaj Finance has a PE ratio of 36.56 and Bajaj Finserv stands at 33.63, both indicating that Star Health Insurance is trading at a premium relative to these competitors.

Additionally, the company's ROE stands at 8.35%, which is relatively low given its high valuation metrics. The stock has underperformed against the Sensex over the last year, with a return of -15.51% compared to the Sensex's 1.09%. This further reinforces the view that Star Health Insurance is overvalued in the current market environment.
{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News