Tata Steel Limited

NSEI:TATASTEEL Stock Report

Market Cap: ₹1.8t

Tata Steel Valuation

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

Below Fair Value: TATASTEEL (₹142.78) is trading below our estimate of fair value (₹158.94)

Significantly Below Fair Value: TATASTEEL is trading below fair value, but not by a significant amount.

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 Ratio61.1x
Earnings₹29.18b
Market Cap₹1.78t

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 Average23.6x
500228 JSW Steel
47.6x47.6%₹2.4t
JINDALSTEL Jindal Steel & Power
17.7x33.2%₹896.6b
526371 NMDC
10.6x10.9%₹646.8b
SAIL Steel Authority of India
18.4x28.8%₹466.0b
TATASTEEL Tata Steel
61.1x60.5%₹1.8t

Price-To-Earnings vs Peers: TATASTEEL is expensive based on its Price-To-Earnings Ratio (61.1x) compared to the peer average (23.6x).

Price to Earnings Ratio vs Industry

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

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
590078 Maithan Alloys
3.7xn/aUS$366.20m
526608 Electrotherm (India)
3.3xn/aUS$148.27m
522165 Indsil Hydro Power and Manganese
1.6xn/aUS$16.64m
PRAKASHSTL Prakash Steelage
3.8xn/aUS$16.58m
TATASTEEL 61.1xIndustry Avg. 24.2xNo. of Companies26PE01632486480+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TATASTEEL is expensive based on its Price-To-Earnings Ratio (61.1x) compared to the Indian Metals and Mining industry average (24.2x).

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 Ratio61.1x
Fair PE Ratio84.5x

Price-To-Earnings vs Fair Ratio: TATASTEEL is good value based on its Price-To-Earnings Ratio (61.1x) compared to the estimated Fair Price-To-Earnings Ratio (84.5x).

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 TATASTEEL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹142.78
₹163.70
+14.7%
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₹115.00n/a28
Jan ’25₹139.85
₹135.96
-2.8%
11.7%₹160.00₹100.00n/a27
Dec ’24₹130.00
₹134.68
+3.6%
11.4%₹157.00₹100.00n/a28
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
Jan ’24₹112.65
₹120.11
+6.6%
18.5%₹180.00₹71.00₹139.8528
Dec ’23₹110.75
₹118.15
+6.7%
18.5%₹180.00₹71.00₹130.0028
Nov ’23₹101.20
₹116.99
+15.6%
20.1%₹180.00₹71.10₹116.6029

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

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