Tata Steel Valuation

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

TTST ($16.6) is trading below our estimate of [[fair value]] ($21.46)

Is TTST 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 TTST when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TTST ($16.6) is trading below our estimate of fair value ($21.46)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TTST. This is calculated by dividing TTST's market cap by their current earnings.
What is TTST's PE Ratio?
PE Ratio	61.1x
Earnings	₹29.18b
Market Cap	₹1.78t

TTST 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	1.2x
Enterprise Value/EBITDA	10.8x
PEG Ratio	1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TTST 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	12.6x
NLMK Novolipetsk Steel	0.8x	n/a	US$4.1b
HILS Hill & Smith	22.4x	10.9%	UK£1.7b
EVR EVRAZ	0.4x	n/a	UK£1.2b
ANTO Antofagasta	26.9x	18.3%	UK£16.4b
TTST Tata Steel	61.1x	60.5%	US$1.8t

Price-To-Earnings vs Peers: TTST is expensive based on its Price-To-Earnings Ratio (61.1x) compared to the peer average (24.7x).

Price to Earnings Ratio vs Industry

How does TTST's PE Ratio compare vs other companies in the GB Metals and Mining Industry?

8 Companies	Price / Earnings	Estimated Growth	Market Cap
ENPL En+ Group International	2.2x	8.0%	US$4.67b
NLMK Novolipetsk Steel	0.8x	n/a	US$4.08b
EVR EVRAZ	0.4x	n/a	US$1.42b
MTL Metals Exploration	0.9x	-60.3%	US$124.52m

8 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: TTST is expensive based on its Price-To-Earnings Ratio (61.1x) compared to the UK Metals and Mining industry average (10.3x).

Price to Earnings Ratio vs Fair Ratio

What is TTST'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.

TTST PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	61.1x
Fair PE Ratio	52.4x

Price-To-Earnings vs Fair Ratio: TTST is expensive based on its Price-To-Earnings Ratio (61.1x) compared to the estimated Fair Price-To-Earnings Ratio (52.4x).

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.

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