Tata Elxsi Valuation

Is 500408 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 500408 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
₹1.28k
Fair Value
404.3% overvalued intrinsic discount
13
Number of Analysts

Below Fair Value: 500408 (₹6432.75) is trading above our estimate of fair value (₹1275.65)

Significantly Below Fair Value: 500408 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 500408?

Key metric: As 500408 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 500408. This is calculated by dividing 500408's market cap by their current earnings.
What is 500408's PE Ratio?
PE Ratio49.5x
Earnings₹8.09b
Market Cap₹400.65b

Price to Earnings Ratio vs Peers

How does 500408's PE Ratio compare to its peers?

The above table shows the PE ratio for 500408 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average67.5x
KPITTECH KPIT Technologies
51.7x17.0%₹392.7b
BSOFT Birlasoft
24x13.3%₹148.2b
NEWGEN Newgen Software Technologies
47.8x20.2%₹149.3b
532407 MosChip Technologies
146.7xn/a₹37.6b
500408 Tata Elxsi
49.5x12.1%₹400.7b

Price-To-Earnings vs Peers: 500408 is good value based on its Price-To-Earnings Ratio (49.5x) compared to the peer average (67.5x).


Price to Earnings Ratio vs Industry

How does 500408's PE Ratio compare vs other companies in the IN Software Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
CLOUD Varanium Cloud
0.2xn/aUS$5.26m
No more companies available in this PE range
500408 49.5xIndustry Avg. 35.0xNo. of Companies9PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 500408 is expensive based on its Price-To-Earnings Ratio (49.5x) compared to the Indian Software industry average (35x).


Price to Earnings Ratio vs Fair Ratio

What is 500408'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.

500408 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio49.5x
Fair PE Ratio35.1x

Price-To-Earnings vs Fair Ratio: 500408 is expensive based on its Price-To-Earnings Ratio (49.5x) compared to the estimated Fair Price-To-Earnings Ratio (35.1x).


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 500408 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹6,432.75
₹6,434.08
+0.02%
18.4%₹8,963.00₹5,400.00n/a13
Jan ’26₹6,746.70
₹6,814.92
+1.0%
15.5%₹8,963.00₹5,510.00n/a13
Dec ’25₹6,670.50
₹6,944.92
+4.1%
15.0%₹8,963.00₹5,510.00n/a13
Nov ’25₹7,107.70
₹6,944.77
-2.3%
15.0%₹8,963.00₹5,510.00n/a13
Oct ’25₹7,767.90
₹6,744.42
-13.2%
15.0%₹8,904.00₹5,500.00n/a12
Sep ’25₹7,992.05
₹6,661.36
-16.7%
13.0%₹8,166.00₹5,500.00n/a11
Aug ’25₹6,940.35
₹6,661.36
-4.0%
13.0%₹8,166.00₹5,500.00n/a11
Jul ’25₹7,071.50
₹6,662.22
-5.8%
14.6%₹8,095.00₹5,320.00n/a9
Jun ’25₹6,953.40
₹6,666.11
-4.1%
14.6%₹8,095.00₹5,320.00n/a9
May ’25₹7,047.75
₹6,787.22
-3.7%
17.2%₹8,989.00₹5,320.00n/a9
Apr ’25₹7,743.40
₹7,177.11
-7.3%
18.5%₹8,989.00₹5,300.00n/a9
Mar ’25₹7,738.65
₹7,204.89
-6.9%
17.9%₹8,989.00₹5,300.00n/a9
Feb ’25₹7,636.05
₹7,204.89
-5.6%
17.9%₹8,989.00₹5,300.00₹6,381.209
Jan ’25₹8,746.70
₹6,859.22
-21.6%
20.3%₹8,466.00₹5,000.00₹6,746.709
Dec ’24₹8,417.80
₹6,859.22
-18.5%
20.3%₹8,466.00₹5,000.00₹6,670.509
Nov ’24₹7,479.10
₹6,859.22
-8.3%
20.3%₹8,466.00₹5,000.00₹7,107.709
Oct ’24₹7,220.80
₹6,265.14
-13.2%
22.6%₹8,406.00₹4,500.00₹7,767.907
Sep ’24₹7,283.45
₹6,165.14
-15.4%
23.1%₹8,406.00₹4,500.00₹7,992.057
Aug ’24₹7,178.35
₹6,292.67
-12.3%
23.9%₹8,406.00₹4,500.00₹6,940.356
Jul ’24₹7,584.05
₹6,227.83
-17.9%
21.3%₹7,934.00₹4,600.00₹7,071.506
Jun ’24₹7,635.55
₹6,179.50
-19.1%
22.2%₹7,934.00₹4,400.00₹6,953.406
May ’24₹6,641.45
₹5,917.29
-10.9%
25.3%₹8,884.00₹4,240.00₹7,047.757
Apr ’24₹5,961.50
₹5,924.43
-0.6%
25.3%₹8,884.00₹4,240.00₹7,743.407
Mar ’24₹6,196.95
₹5,937.29
-4.2%
25.4%₹8,884.00₹4,240.00₹7,738.657
Feb ’24₹6,592.15
₹6,345.13
-3.7%
28.0%₹9,200.00₹4,240.00₹7,636.058
Analyst Price Target
Consensus Narrative from 13 Analysts
₹6.43k
Fair Value
0.02% undervalued intrinsic discount
13
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 Analysis2025/02/07 18:20
End of Day Share Price 2025/02/07 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 Elxsi Limited is covered by 27 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Nitin BhasinAmbit Capital
Moez ChandaniAmbit Capital
Ashwin MehtaAmbit Capital