Tata Steel Limited

NSEI:TATASTEEL Stock Report

Market Cap: ₹1.7t

Tata Steel Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Discounted Cash Flow
Simply Wall St
₹168.75
Fair Value
21.5% undervalued intrinsic discount
30
Number of Analysts

Below Fair Value: TATASTEEL (₹132.54) is trading below our estimate of fair value (₹168.75)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TATASTEEL. This is calculated by dividing TATASTEEL's market cap by their current earnings.
What is TATASTEEL's PE Ratio?
PE Ratio60.6x
Earnings₹27.31b
Market Cap₹1.65t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TATASTEEL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average29.3x
500228 JSW Steel
70x65.4%₹2.3t
JINDALSTEL Jindal Steel & Power
20.2x39.6%₹825.6b
526371 NMDC
9.4x11.5%₹572.9b
SAIL Steel Authority of India
17.6x28.0%₹446.0b
TATASTEEL Tata Steel
60.6x68.8%₹1.7t

Price-To-Earnings vs Peers: TATASTEEL is expensive based on its Price-To-Earnings Ratio (60.6x) compared to the peer average (29.3x).

Price to Earnings Ratio vs Industry

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

9 CompaniesPrice / EarningsEstimated GrowthMarket Cap
590078 Maithan Alloys
3.4xn/aUS$323.35m
526608 Electrotherm (India)
2.5xn/aUS$108.11m
PRAKASHSTL Prakash Steelage
3.6xn/aUS$15.07m
522165 Indsil Hydro Power and Manganese
1.3xn/aUS$14.35m
TATASTEEL 60.6xIndustry Avg. 23.3xNo. of Companies28PE01632486480+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TATASTEEL is expensive based on its Price-To-Earnings Ratio (60.6x) compared to the Indian Metals and Mining industry average (23.3x).

Price to Earnings Ratio vs Fair Ratio

What is TATASTEEL'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.

TATASTEEL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio60.6x
Fair PE Ratio87.8x

Price-To-Earnings vs Fair Ratio: TATASTEEL is good value based on its Price-To-Earnings Ratio (60.6x) compared to the estimated Fair Price-To-Earnings Ratio (87.8x).

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 TATASTEEL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹132.54
₹151.50
+14.3%
13.3%₹190.00₹115.00n/a30
Jan ’26₹136.74
₹161.87
+18.4%
11.2%₹192.00₹130.00n/a30
Dec ’25₹144.54
₹163.70
+13.3%
11.6%₹192.00₹130.00n/a30
Nov ’25₹149.75
₹169.80
+13.4%
11.2%₹200.00₹135.00n/a30
Oct ’25₹167.03
₹169.83
+1.7%
11.8%₹200.00₹135.00n/a29
Sep ’25₹152.76
₹168.43
+10.3%
12.6%₹200.00₹135.00n/a28
Aug ’25₹163.06
₹167.89
+3.0%
13.7%₹210.00₹130.00n/a28
Jul ’25₹174.07
₹166.89
-4.1%
14.1%₹210.00₹125.00n/a28
Jun ’25₹167.20
₹163.26
-2.4%
14.5%₹210.00₹125.00n/a27
May ’25₹165.00
₹149.67
-9.3%
13.1%₹200.00₹115.00n/a27
Apr ’25₹163.15
₹145.26
-11.0%
11.3%₹183.00₹115.00n/a27
Mar ’25₹149.95
₹143.74
-4.1%
11.0%₹183.00₹115.00n/a27
Feb ’25₹134.80
₹143.43
+6.4%
10.9%₹183.00₹115.00₹132.9728
Jan ’25₹139.85
₹135.96
-2.8%
11.7%₹160.00₹100.00₹136.7427
Dec ’24₹130.00
₹134.68
+3.6%
11.4%₹157.00₹100.00₹144.5428
Nov ’24₹116.60
₹141.04
+21.0%
10.0%₹167.00₹112.00₹149.7528
Oct ’24₹128.90
₹139.14
+7.9%
10.1%₹167.00₹110.00₹167.0328
Sep ’24₹127.05
₹134.50
+5.9%
8.7%₹155.00₹110.00₹152.7628
Aug ’24₹123.20
₹134.41
+9.1%
8.9%₹155.00₹110.00₹163.0627
Jul ’24₹112.00
₹129.08
+15.2%
9.9%₹155.00₹107.00₹174.0726
Jun ’24₹105.95
₹126.74
+19.6%
13.1%₹155.00₹71.00₹167.2027
May ’24₹107.95
₹125.96
+16.7%
15.8%₹180.00₹71.00₹165.0027
Apr ’24₹104.50
₹125.96
+20.5%
15.2%₹180.00₹71.00₹163.1527
Mar ’24₹105.50
₹125.37
+18.8%
15.4%₹180.00₹71.00₹149.9527
Feb ’24₹122.05
₹124.08
+1.7%
16.8%₹180.00₹71.00₹134.8028
Analyst Price Target
Consensus Narrative from 30 Analysts
₹151.49
Fair Value
12.5% undervalued intrinsic discount
30
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/06 01:38
End of Day Share Price 2025/02/06 00:00
Earnings2024/12/31
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Tata Steel Limited is covered by 77 analysts. 29 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Satyadeep JainAmbit Capital
Nitin BhasinAmbit Capital
Parthiv JhonsaAnand Rathi Shares and Stock Brokers Limited