Tata Motors Limited

NSEI:TATAMOTORS Stock Report

Market Cap: ₹2.9t

Tata Motors Valuation

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

Below Fair Value: TATAMOTORS (₹783.95) is trading above our estimate of fair value (₹489.96)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TATAMOTORS. This is calculated by dividing TATAMOTORS's market cap by their current earnings.
What is TATAMOTORS's PE Ratio?
PE Ratio8.7x
Earnings₹333.41b
Market Cap₹2.89t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TATAMOTORS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.5x
M&M Mahindra & Mahindra
28.2x11.0%₹3.3t
MARUTI Maruti Suzuki India
24.8x10.5%₹3.5t
HYUNDAI Hyundai Motor India
26x9.4%₹1.5t
BAJAJ-AUTO Bajaj Auto
34.8x16.5%₹2.6t
TATAMOTORS Tata Motors
8.7x1.0%₹2.9t

Price-To-Earnings vs Peers: TATAMOTORS is good value based on its Price-To-Earnings Ratio (8.7x) compared to the peer average (28.5x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
TATAMOTORS 8.7xIndustry Avg. 19.0xNo. of Companies9PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TATAMOTORS is good value based on its Price-To-Earnings Ratio (8.7x) compared to the Asian Auto industry average (19x).

Price to Earnings Ratio vs Fair Ratio

What is TATAMOTORS'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.

TATAMOTORS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.7x
Fair PE Ratio26.5x

Price-To-Earnings vs Fair Ratio: TATAMOTORS is good value based on its Price-To-Earnings Ratio (8.7x) 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 TATAMOTORS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹783.95
₹982.42
+25.3%
14.1%₹1,300.00₹767.00n/a31
Nov ’25₹843.45
₹1,149.13
+36.2%
11.7%₹1,340.00₹825.00n/a30
Oct ’25₹965.20
₹1,176.58
+21.9%
10.8%₹1,340.00₹825.00n/a31
Sep ’25₹1,111.35
₹1,170.66
+5.3%
11.1%₹1,340.00₹825.00n/a32
Aug ’25₹1,144.40
₹1,127.06
-1.5%
11.2%₹1,340.00₹825.00n/a32
Jul ’25₹1,002.05
₹1,090.38
+8.8%
11.8%₹1,250.00₹650.00n/a32
Jun ’25₹923.00
₹1,086.45
+17.7%
12.0%₹1,250.00₹650.00n/a31
May ’25₹1,007.90
₹1,014.07
+0.6%
14.3%₹1,265.00₹596.00n/a30
Apr ’25₹992.25
₹996.40
+0.4%
13.5%₹1,265.00₹596.00n/a30
Mar ’25₹977.40
₹957.06
-2.1%
13.0%₹1,100.00₹596.00n/a31
Feb ’25₹878.50
₹826.75
-5.9%
13.5%₹1,000.00₹550.00n/a32
Jan ’25₹790.60
₹748.27
-5.4%
9.5%₹841.00₹550.00n/a33
Dec ’24₹705.45
₹743.79
+5.4%
9.2%₹841.00₹550.00n/a33
Nov ’24₹627.70
₹721.94
+15.0%
9.1%₹830.00₹525.00₹843.4533
Oct ’24₹630.20
₹715.48
+13.5%
9.9%₹830.00₹490.00₹965.2033
Sep ’24₹611.20
₹715.48
+17.1%
9.9%₹830.00₹490.00₹1,111.3533
Aug ’24₹643.65
₹712.00
+10.6%
10.2%₹830.00₹490.00₹1,144.4032
Jul ’24₹595.55
₹611.63
+2.7%
9.2%₹700.00₹450.00₹1,002.0530
Jun ’24₹535.20
₹598.30
+11.8%
8.1%₹665.00₹450.00₹923.0030
May ’24₹484.95
₹528.75
+9.0%
10.9%₹608.00₹371.00₹1,007.9028
Apr ’24₹420.80
₹518.39
+23.2%
10.3%₹608.00₹371.00₹992.2528
Mar ’24₹426.00
₹517.67
+21.5%
10.0%₹608.00₹371.00₹977.4030
Feb ’24₹446.65
₹515.00
+15.3%
10.2%₹608.00₹371.00₹878.5029
Jan ’24₹387.95
₹491.33
+26.6%
11.9%₹575.00₹320.00₹790.6030
Dec ’23₹438.25
₹494.86
+12.9%
11.5%₹575.00₹320.00₹705.4529
Nov ’23₹421.35
₹514.97
+22.2%
13.1%₹646.00₹320.00₹627.7030

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

Discover undervalued companies

Forge Auto International

₹957.1m

An engineering company, engages in the forging, manufacturing, and sale of forged and precision machined components in India.

FORGEAUTO

₹87.65

7D

3.2%

1Y

n/a

Subros

₹41.1b

Engages in the manufacture and sale of thermal products for automotive applications in India.

SUBROS

₹628.80

7D

3.1%

1Y

47.2%

CIE Automotive India

₹183.5b

Produces and sells automotive components to original equipment manufacturers and other customers in India, Europe, and internationally.

CIEINDIA

₹483.15

7D

3.5%

1Y

0.8%