Tata Motors Limited

BSE:500570 Stock Report

Market Cap: ₹2.9t

Tata Motors Valuation

Is 500570 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 500570 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 500570 (₹773.7) is trading above our estimate of fair value (₹490.21)

Significantly Below Fair Value: 500570 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 500570?

Key metric: As 500570 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 500570. This is calculated by dividing 500570's market cap by their current earnings.
What is 500570's PE Ratio?
PE Ratio8.5x
Earnings₹333.41b
Market Cap₹2.88t

Price to Earnings Ratio vs Peers

How does 500570's PE Ratio compare to its peers?

The above table shows the PE ratio for 500570 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.2x
M&M Mahindra & Mahindra
27.6x11.0%₹3.3t
MARUTI Maruti Suzuki India
24.4x10.5%₹3.4t
HYUNDAI Hyundai Motor India
24.9x9.9%₹1.5t
BAJAJ-AUTO Bajaj Auto
36x16.5%₹2.7t
500570 Tata Motors
8.5x1.0%₹2.9t

Price-To-Earnings vs Peers: 500570 is good value based on its Price-To-Earnings Ratio (8.5x) compared to the peer average (28.2x).

Price to Earnings Ratio vs Industry

How does 500570's PE Ratio compare vs other companies in the Asian Auto Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
500570 8.5xIndustry Avg. 17.8xNo. of Companies9PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 500570 is good value based on its Price-To-Earnings Ratio (8.5x) compared to the Asian Auto industry average (17.8x).

Price to Earnings Ratio vs Fair Ratio

What is 500570'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.

500570 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.5x
Fair PE Ratio26.5x

Price-To-Earnings vs Fair Ratio: 500570 is good value based on its Price-To-Earnings Ratio (8.5x) compared to the estimated Fair Price-To-Earnings Ratio (26.5x).

Analyst Price Targets

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

The above table shows the analyst 500570 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹773.70
₹982.42
+27.0%
14.1%₹1,300.00₹767.00n/a31
Nov ’25₹843.60
₹1,149.13
+36.2%
11.7%₹1,340.00₹825.00n/a30
Oct ’25₹965.35
₹1,176.58
+21.9%
10.8%₹1,340.00₹825.00n/a31
Sep ’25₹1,109.40
₹1,170.66
+5.5%
11.1%₹1,340.00₹825.00n/a32
Aug ’25₹1,144.60
₹1,127.06
-1.5%
11.2%₹1,340.00₹825.00n/a32
Jul ’25₹1,001.65
₹1,090.38
+8.9%
11.8%₹1,250.00₹650.00n/a32
Jun ’25₹922.85
₹1,086.45
+17.7%
12.0%₹1,250.00₹650.00n/a31
May ’25₹1,007.85
₹1,014.07
+0.6%
14.3%₹1,265.00₹596.00n/a30
Apr ’25₹992.10
₹996.40
+0.4%
13.5%₹1,265.00₹596.00n/a30
Mar ’25₹977.20
₹957.06
-2.1%
13.0%₹1,100.00₹596.00n/a31
Feb ’25₹878.35
₹826.75
-5.9%
13.5%₹1,000.00₹550.00n/a32
Jan ’25₹790.50
₹748.27
-5.3%
9.5%₹841.00₹550.00n/a33
Dec ’24₹705.70
₹743.79
+5.4%
9.2%₹841.00₹550.00n/a33
Nov ’24₹627.35
₹721.94
+15.1%
9.1%₹830.00₹525.00₹843.6033
Oct ’24₹630.35
₹715.48
+13.5%
9.9%₹830.00₹490.00₹965.3533
Sep ’24₹611.20
₹715.48
+17.1%
9.9%₹830.00₹490.00₹1,109.4033
Aug ’24₹643.25
₹712.00
+10.7%
10.2%₹830.00₹490.00₹1,144.6032
Jul ’24₹595.50
₹611.63
+2.7%
9.2%₹700.00₹450.00₹1,001.6530
Jun ’24₹535.25
₹598.30
+11.8%
8.1%₹665.00₹450.00₹922.8530
May ’24₹485.15
₹528.75
+9.0%
10.9%₹608.00₹371.00₹1,007.8528
Apr ’24₹420.60
₹518.39
+23.3%
10.3%₹608.00₹371.00₹992.1028
Mar ’24₹425.95
₹517.67
+21.5%
10.0%₹608.00₹371.00₹977.2030
Feb ’24₹446.65
₹515.00
+15.3%
10.2%₹608.00₹371.00₹878.3529
Jan ’24₹388.10
₹491.33
+26.6%
11.9%₹575.00₹320.00₹790.5030
Dec ’23₹438.30
₹494.86
+12.9%
11.5%₹575.00₹320.00₹705.7029
Nov ’23₹421.50
₹514.97
+22.2%
13.1%₹646.00₹320.00₹627.3530

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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