Is Star Health Insu overvalued or undervalued?

Oct 13 2025 08:13 AM IST
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As of October 10, 2025, Star Health Insurance is considered overvalued with a high PE ratio of 47.75 and a valuation grade that has shifted from fair to expensive, particularly when compared to peers like Bajaj Finance and Life Insurance.
As of 10 October 2025, the valuation grade for Star Health Insurance has moved from fair to expensive. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 47.75, a Price to Book Value of 3.99, and an EV to EBIT of 12.35. These figures indicate that the stock is trading at a significant premium compared to its earnings and book value.

In comparison to its peers, Star Health's PE ratio is notably higher than Bajaj Finance's 36.56 and Life Insurance's attractive 11.65, highlighting its expensive valuation relative to the industry. Additionally, while the company has shown some short-term strength with a 4.83% return over the past week compared to the Sensex's 1.59%, its longer-term performance has been underwhelming, with a 15.51% decline over the past year. Overall, Star Health Insurance appears to be overvalued in the current market environment.
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