Niva Bupa Health Insurance Valuation

Q: What is the Fair Price of NIVABUPA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

NIVABUPA (₹73.7) is trading below our estimate of [[fair value]] (₹99.5)

Is NIVABUPA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NIVABUPA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NIVABUPA (₹73.7) is trading below our estimate of fair value (₹99.5)

Significantly Below Fair Value: NIVABUPA is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NIVABUPA?

Key metric: As NIVABUPA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for NIVABUPA. This is calculated by dividing NIVABUPA's market cap by their current earnings.
What is NIVABUPA's PE Ratio?
PE Ratio	98.5x
Earnings	₹1.35b
Market Cap	₹132.49b

NIVABUPA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.9x
Enterprise Value/EBITDA	80.7x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does NIVABUPA's PE Ratio compare to its peers?

The above table shows the PE ratio for NIVABUPA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	74.8x
RELIGARE Religare Enterprises	38.2x	n/a	₹82.2b
STARHEALTH Star Health and Allied Insurance	31.3x	18.4%	₹269.1b
MFSL Max Financial Services	116.4x	22.9%	₹403.2b
ICICIPRULI ICICI Prudential Life Insurance	113.3x	1.7%	₹980.3b
NIVABUPA Niva Bupa Health Insurance	98.5x	n/a	₹132.5b

Price-To-Earnings vs Peers: NIVABUPA is expensive based on its Price-To-Earnings Ratio (98.5x) compared to the peer average (74.8x).

Price to Earnings Ratio vs Industry

How does NIVABUPA's PE Ratio compare vs other companies in the Asian Insurance Industry?

7 Companies	Price / Earnings	Estimated Growth	Market Cap

7 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: NIVABUPA is expensive based on its Price-To-Earnings Ratio (98.5x) compared to the Asian Insurance industry average (11x).

Price to Earnings Ratio vs Fair Ratio

What is NIVABUPA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NIVABUPA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	98.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate NIVABUPA's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

General Insurance Corporation of India

₹643.0b

Provides reinsurance services in India and internationally.

GICRE

₹378.85

7.0%

23.4%

Star Health and Allied Insurance

₹269.1b

Provides health insurance products in India.

STARHEALTH

₹459.70

-3.2%

-19.4%

General Insurance Corporation of India

₹643.0b

Provides reinsurance services in India and internationally.

540755

₹378.40

6.8%

23.0%