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Niva Bupa Health Insurance Company — Peer Comparison

How the peer fair value is calculated and which companies were used as benchmarks.

Peer fair value could not be computed for NIVABUPA. Insufficient peer ratio data.

Peer selection

Peers are selected from the same Financial Services sector. 8 companies were matched as valid comparables.

Same-industry peers share similar business models, cost structures, and growth prospects — making them the most appropriate benchmarks for valuation multiples. Industry-level matches were unavailable, so sector-level peers were used instead.

Peer comparison table

Financial Services · 8 peers · sector medians shown

Better than medianWorse than median

Company	Mkt Cap	P/E	P/B	EV/EBITDA	ROE	Net Margin	Rev CAGR 3y
Niva Bupa Health Insurance Company NIVABUPA · you	₹13,273 Cr	—	—	—	3.5%	—	27.0%
Sector median	—	27.5×	3.1×	19.7×	15.4%	21.5%	21.8%
Multi Commodity Exchange of India MCX	₹74,521 Cr	56.9×	17.9×	43.7×	31.6%	57.8%	61.8%
Housing & Urban Development Corporation HUDCO	₹70,258 Cr	27.5×	3.1×	53.0×	11.4%	23.0%	25.3%
Bajaj Housing Finance BAJAJHFL	₹70,258 Cr	27.5×	3.1×	53.0×	11.4%	23.0%	25.3%
General Insurance Corporation of India GICRE	₹61,983 Cr	6.3×	1.0×	—	16.3%	20.0%	7.4%
Motilal Oswal Financial Services MOTILALOFS	₹61,499 Cr	29.4×	4.2×	19.7×	14.5%	19.9%	30.9%
SBI Cards and Payment Services SBICARD	₹60,365 Cr	28.1×	3.9×	18.8×	13.8%	10.9%	13.3%
HDB Financial Services HDBFS	₹57,044 Cr	20.6×	—	14.5×	1983.5%	—	14.1%
M&M Financial Services M&MFIN	₹54,188 Cr	17.2×	3.0×	3.0×	17.2%	—	18.3%

Peer comparison verdict

Niva is fairly valued relative to sector peers — trading near the sector median on key multiples (P/E ~27.5×, EV/EBITDA ~19.7×). Focus on execution quality and earnings trajectory from here.

How the peer fair value is calculated

Three valuation methods are weighted by sector. Each gives a fair value based on how sector peers are currently priced.

Method breakdown

30% weight · 8 peers

Sector median PE27.5×

Fair value via PE—

50% weight · 7 peers

Sector median PB3.1×

Fair value via PB—

EV/EBITDA

20% weight · 7 peers

Sector median EV/EBITDA19.7×

Fair value via EV/EBITDA—

Blended peer fair value—

Why median? Why these weights?

Median over mean: The sector median is used instead of the average because valuation multiples have extreme outliers — one high-growth company at 200× P/E would dramatically skew a mean. The median gives the middle value in the peer set, which better represents typical pricing.

Sector-specific weights: The weight given to each method reflects what matters most in this sector. For banks, P/B dominates because their value is tied to book assets. For IT companies, P/E carries the most weight because earnings quality matters more than asset base. For capital-intensive businesses, EV/EBITDA accounts for varying debt levels across peers and removes financing structure bias.

Limitations of peer comparison

Peer comparison assumes comparable companies are truly comparable — which is never perfectly true. Sector classifications can be imperfect: a conglomerate classified as "IT" may also have significant manufacturing revenue. Small peer counts (below 5) reduce confidence, as a single outlier can skew the sector median. When the entire sector is broadly expensive, peer comparison will show even an expensive stock as "fairly valued" relative to its peers.

The peer fair value shown is an algorithmic estimate based on publicly available financial data. It is not investment advice or a recommendation to buy, sell, or hold any security. Please consult a SEBI-registered investment adviser before making any investment decision.