Star Health and Allied Insurance Company Limited (STARHEALTH) fair value: what the stock is really worth
As of Oct 1, 2026: fair value of Star Health and Allied Insurance Company Limited ₹103, price ₹538, upside -80.9%, quality 57 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
Structural break:
The valuation model sees a lasting decline in earnings power for this stock, the confidence band is broken. Treat the target with caution.
Stretched ValuationStrong overvaluation with only moderate quality.
!Fair value ₹102.78 · Strongly overvalued (−80.9%)
!Quality 57/100
✓Healthy Growth(revenue 5y +25.3 %/yr)
!Thin margins · 3.6% net margin (TTM)
✓Low debt · generates free cash flow
!Trails peers(4/13)
!Narrow moat36/100
!Evidence only low, so the estimate is less certain
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69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 1, 2026.
How to read this chart
58‑month range ₹343.10 – ₹906.85 · fair‑value band ₹99.22 – ₹127.23 · the ₹537.70 price screens above the ₹102.78 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 1, 2026.
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Star Health and Allied Insurance Company Limited provides health insurance products in India.
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Star Health and Allied Insurance Company Limited provides health insurance products in India. It offers retail health insurance products for individuals, families, children, senior citizens, and persons with pre-existing medical conditions; group health insurance products for employer/employee and non-employer/employee groups, including small-to-medium enterprises; and personal accident and travel insurance products. The company also provides star women care insurance policy that provides surrogacy and oocyte donor covers; and star special care product that covers children diagnosed with autism and for outpatient specialized treatments. In addition, it offers star health assure insurance policy, star cancer care platinum insurance policy, senior citizens health insurance policy, and star cardiac care insurance policy " platinum, as well as star group OPD care insurance product. The company offers its products through web aggregators, digital channels, agency channels, corporate agents, brokers, point of salesperson, insurance marketing firms, and various other channels. Star Health and Allied Insurance Company was incorporated in 2005 and is based in Chennai, India.
Stock analysis
Star Health and Allied Insurance Company Limited (STARHEALTH) currently trades at ₹537.70, while our model-based Fair Value estimate is ₹102.78, 80.9% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of ₹123.06 per share, and 0 of the 4 models we run sit above the ₹537.70 price.
Bear case: the Asset-Based group reads lowest at ₹85.98, and 4 of the 4 models stay below the price. Evidence for this calculation is low.
Scenario range: ₹99.22 (bear) to ₹127.23 (bull), the price of ₹537.70 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 57/100 (solid quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Star Health and Allied Insurance Company Limited reported revenue of ₹178B in FY2026 versus ₹106B in FY2022, a compound +13.9%/yr. Reported net income was ₹5.6B in FY2026.
Key figures
Market cap ₹316B (≈ $3.3B) · P/E ratio 47.5 · P/S ratio 1.48 · EPS (TTM) ₹11.33 · Net margin 3.1% · Return on equity 7.5% · Return on assets (EBIT) 1.9% · Operating margin 13.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 12% below its 52-week high and 26% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −35% fair-value upside, at −81%, STARHEALTH screens richer than that median.
Fair Value models
Bear ₹99.22Fair Value ₹102.78Bull ₹127.23
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then (₹5.74 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+8.2%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+25.3%
Start year 2021 (pandemic). Over 10 years: +27.3% a year
Revenue growth 13 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+31.1%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+11.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year+11.6%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.11.6% vs 11.4%, steady
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−25% → 4%
Start year 2021 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+9.8%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+14.2%
Yearly sales growth analysts expect, extended to five years.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +5.4% a year for the price and +9.7% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (2 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
Compare Star Health and Allied Insurance Company Limited with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Insurance - Life · 89 stocks
Beats the industry median on 4/13 measures
Overall it trails its industry peers.
Valuation
Quality Score58 · Above median
Fair Value upside−80.9% · Bottom 25%
Profitability
Return on equity (TTM)7.5% · Below median
Return on assets2.5% · Top 25%
Net margin (TTM)3.6% · Bottom 25%
Operating margin (TTM)13.7% · Below median
Growth and dividend
Revenue growth14.1% · Above median
Balance sheet
Debt / equity0.06× · Lowest 25%
Valuation Multiplesvs Insurance - Life median · lower = cheaper
P/E (TTM)47.5× · Priciest 25%
P/B4.19× · Priciest 25%
P/S (TTM)1.71× · Pricier than median
P/FCF18.0× · Priciest 25%
EV/EBITDA39.1× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 2
FUTURE (revenue growth)70· sector 43
PAST (return on equity)30· sector 48
HEALTH (low debt)97· sector 87
DIVIDEND (yield)0· sector 56
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Star Health and Allied Insurance Company Limited Fair Value". https://www.fairvalue-calculator.com/stock/STARHEALTH
Frequently asked questions
Is Star Health and Allied Insurance Company Limited (STARHEALTH) overvalued or undervalued?
As of Oct 1, 2026, our model estimates a fair value of ₹102.78 versus a price of ₹537.70, about −81% upside (overvalued).
What is the fair value of STARHEALTH?
Our model-based fair value for Star Health and Allied Insurance Company Limited is ₹102.78 (as of Oct 1, 2026), built from audited fundamentals. The current price: ₹537.70.
What is the quality score of STARHEALTH?
Star Health and Allied Insurance Company Limited has a Quality Score of 57/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Star Health and Allied Insurance Company Limited (STARHEALTH)?
Our model-based price target is the fair value of ₹102.78 (as of Oct 1, 2026) from 4 valuation models. Cautious scenario ₹99.22, optimistic scenario ₹127.23. It is a calculation from audited fundamentals, not an analyst target.
What is the Star Health and Allied Insurance Company Limited stock forecast for 2026?
Our models put fair value at ₹102.78, about −81% upside versus a price of ₹537.70 (overvalued). Cautious scenario ₹99.22, optimistic scenario ₹127.23. The calculation is refreshed regularly with new filings.
What is the revenue of Star Health and Allied Insurance Company Limited (STARHEALTH)?
Star Health and Allied Insurance Company Limited reported trailing-twelve-month revenue of about ₹185B (latest available figure, as of Oct 1, 2026).
What growth is priced into Star Health and Allied Insurance Company Limited (STARHEALTH)?
For today's price to be fair in a discounted-cash-flow model, Star Health and Allied Insurance Company Limited would have to grow free cash flow by +9.8 % per year for five years (discount rate 10.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +25.3 % per year. As of Oct 1, 2026.
What discount rate (WACC) does the fair value of STARHEALTH use?
Our models discount Star Health and Allied Insurance Company Limited at 10.9 %: a base by market capitalisation (mid), damped by beta 0.19, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Star Health and Allied Insurance Company Limited that is +9.8 % per year a year over ten years, using the same discount rate (10.9 %) and the same formula as our fair value.
How much growth has Star Health and Allied Insurance Company Limited (STARHEALTH) delivered so far?
Over the past 5 years revenue at Star Health and Allied Insurance Company Limited grew +25.3 % a year. The price currently implies +9.8 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Star Health and Allied Insurance Company Limited (STARHEALTH) growing?
The median revenue growth in the sector is +9.3 % a year. That is the yardstick for the growth priced into Star Health and Allied Insurance Company Limited (+9.8 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Star Health and Allied Insurance Company Limited (STARHEALTH)?
The free-cash-flow yield on the price is 5.55 %: that much free cash flow Star Health and Allied Insurance Company Limited produces per unit of market value. When it exceeds the discount rate of our models (10.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Star Health and Allied Insurance Company Limited (STARHEALTH)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Star Health and Allied Insurance Company Limited it is ₹102.78 per share (as of Oct 1, 2026), against a price of ₹537.70. It is the blended result of 4 valuation models (cash flow, earnings, asset, dividend).
Is Star Health and Allied Insurance Company Limited stock overvalued or undervalued in 2026?
As of Oct 1, 2026, STARHEALTH trades above its calculated fair value: price ₹537.70, fair value ₹102.78, a gap of about −81% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of STARHEALTH?
No. The price is what the market pays today (₹537.70); the fair value is what the company's own numbers justify (₹102.78). For Star Health and Allied Insurance Company Limited the two are ₹434.92 per share apart. That gap is exactly why we show both numbers side by side.
How much is Star Health and Allied Insurance Company Limited worth?
The market values Star Health and Allied Insurance Company Limited at about ₹316B (market capitalisation, as of Oct 1, 2026). Per share that is ₹537.70; our models calculate a fair value of ₹102.78 per share.
What do the bullish and bearish scenarios say about STARHEALTH?
Our models span a range for Star Health and Allied Insurance Company Limited: cautious scenario ₹99.22, base ₹102.78, optimistic ₹127.23 per share (as of Oct 1, 2026, price ₹537.70). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of STARHEALTH?
Star Health and Allied Insurance Company Limited trades at a price-to-earnings ratio of 47.5 (as of Oct 1, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹102.78 is built from several models across several years. Other multiples: P/B 4.2, P/S 1.7, EV/EBITDA 39.1.
How solid is the balance sheet of Star Health and Allied Insurance Company Limited (STARHEALTH)?
Balance-sheet figures for Star Health and Allied Insurance Company Limited (as of Oct 1, 2026): return on equity 7.5%, debt of 0.06 per unit of equity. They feed the Quality Score of 57/100, which measures business quality independently of the share price.
How far is STARHEALTH from its 52-week high?
Star Health and Allied Insurance Company Limited trades at ₹537.70, about 12% below its 52-week high of ₹610.40 and 26% above the low of ₹425.15 (as of Oct 1, 2026). Distance from the high says nothing about value: that is what the fair value of ₹102.78 is for.
Which stocks are comparable to Star Health and Allied Insurance Company Limited?
From the same area (Financial Services) we also value China Life Insurance Company, Ping An Insurance (Group) Company, AIA Group, Manulife Financial Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Star Health and Allied Insurance Company Limited stock attractive at the current price?
The data as of Oct 1, 2026: price ₹537.70, calculated fair value ₹102.78 (−81%), Quality Score 57/100, from 4 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of STARHEALTH calculated?
We run Star Health and Allied Insurance Company Limited through 4 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹102.78, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Star Health and Allied Insurance Company Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Star Health and Allied Insurance Company Limited (STARHEALTH)?
The closing price on Oct 1, 2026 was ₹537.70. Our model-based fair value is ₹102.78, about −81% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Star Health and Allied Insurance Company Limited right now?
The price sits above even our optimistic bull case (₹127.23). The favourable scenario is already priced in. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Key figures of Star Health and Allied Insurance Company Limited
How large is the market capitalisation of Star Health and Allied Insurance Company Limited (STARHEALTH)?
The market capitalisation of Star Health and Allied Insurance Company Limited is ₹316B (≈ $3.3B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Star Health and Allied Insurance Company Limited (STARHEALTH)?
The price-to-sales ratio of Star Health and Allied Insurance Company Limited is 1.48 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Star Health and Allied Insurance Company Limited (STARHEALTH)?
Earnings per share at Star Health and Allied Insurance Company Limited are ₹11.33 (price ÷ EPS = P/E 47.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Star Health and Allied Insurance Company Limited (STARHEALTH)?
The net margin of Star Health and Allied Insurance Company Limited is 3.1% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Star Health and Allied Insurance Company Limited (STARHEALTH)?
The return on equity (ROE) of Star Health and Allied Insurance Company Limited is 7.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Star Health and Allied Insurance Company Limited (STARHEALTH)?
On an EBIT basis the return on assets of Star Health and Allied Insurance Company Limited is 1.9% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Star Health and Allied Insurance Company Limited (STARHEALTH)?
The operating margin of Star Health and Allied Insurance Company Limited is 13.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Star Health and Allied Insurance Company Limited (STARHEALTH)?
Revenue at Star Health and Allied Insurance Company Limited is growing +14.1% versus a year earlier (3y avg +13.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Star Health and Allied Insurance Company Limited (STARHEALTH)?
Earnings per share at Star Health and Allied Insurance Company Limited are growing +110% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Star Health and Allied Insurance Company Limited (STARHEALTH) hold?
Star Health and Allied Insurance Company Limited holds more cash than debt, ₹9.7B net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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