The Tata Power Company Limited

NSEI:TATAPOWER Stock Report

Market Cap: ₹1.4t

Tata Power Valuation

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

Below Fair Value: TATAPOWER (₹436.9) is trading above our estimate of fair value (₹37.25)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

TATAPOWER key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.2x
Enterprise Value/EBITDA17.8x
PEG Ratio2.4x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TATAPOWER vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average55.1x
ADANIENSOL Adani Energy Solutions
103.5x7.9%₹1.2t
TORNTPOWER Torrent Power
38.7x16.6%₹716.0b
POWERGRID Power Grid Corporation of India
17.3x6.1%₹2.7t
SJVN SJVN
61x29.7%₹529.0b
TATAPOWER Tata Power
39x16.1%₹1.4t

Price-To-Earnings vs Peers: TATAPOWER is good value based on its Price-To-Earnings Ratio (39x) compared to the peer average (55.1x).


Price to Earnings Ratio vs Industry

How does TATAPOWER's PE Ratio compare vs other companies in the Asian Electric Utilities Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: TATAPOWER is expensive based on its Price-To-Earnings Ratio (39x) compared to the Asian Electric Utilities industry average (15.1x).


Price to Earnings Ratio vs Fair Ratio

What is TATAPOWER'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.

TATAPOWER PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio39x
Fair PE Ratio27.6x

Price-To-Earnings vs Fair Ratio: TATAPOWER is expensive based on its Price-To-Earnings Ratio (39x) compared to the estimated Fair Price-To-Earnings Ratio (27.6x).


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 TATAPOWER forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹436.90
₹341.40
-21.9%
23.7%₹471.60₹230.00n/a19
Apr ’25₹406.95
₹332.47
-18.3%
22.6%₹450.00₹230.00n/a19
Mar ’25₹377.40
₹330.11
-12.5%
23.1%₹450.00₹230.00n/a19
Feb ’25₹388.85
₹289.89
-25.4%
24.5%₹450.00₹212.00n/a19
Jan ’25₹330.30
₹269.16
-18.5%
21.6%₹400.00₹205.00n/a19
Dec ’24₹276.00
₹248.39
-10.0%
15.0%₹308.00₹179.00n/a18
Nov ’24₹236.90
₹233.05
-1.6%
15.6%₹301.00₹179.00n/a19
Oct ’24₹262.30
₹229.37
-12.6%
14.6%₹301.00₹179.00n/a19
Sep ’24₹255.35
₹225.25
-11.8%
13.5%₹275.00₹179.00n/a20
Aug ’24₹244.40
₹218.48
-10.6%
14.5%₹271.00₹168.00n/a21
Jul ’24₹221.85
₹215.42
-2.9%
14.4%₹271.00₹168.00n/a19
Jun ’24₹215.30
₹214.89
-0.2%
14.8%₹271.00₹168.00n/a19
May ’24₹201.10
₹222.89
+10.8%
13.7%₹272.00₹168.00n/a19
Apr ’24₹190.25
₹223.89
+17.7%
14.7%₹272.00₹168.00₹406.9518
Mar ’24₹204.55
₹227.24
+11.1%
14.0%₹271.00₹168.00₹377.4017
Feb ’24₹205.85
₹233.20
+13.3%
13.8%₹300.00₹180.00₹388.8520
Jan ’24₹207.70
₹233.05
+12.2%
13.0%₹300.00₹180.00₹330.3019
Dec ’23₹224.85
₹232.00
+3.2%
13.4%₹300.00₹180.00₹276.0019
Nov ’23₹230.60
₹233.22
+1.1%
13.5%₹300.00₹180.00₹236.9018
Oct ’23₹216.50
₹232.28
+7.3%
13.8%₹300.00₹175.00₹262.3018
Sep ’23₹237.20
₹230.35
-2.9%
13.9%₹300.00₹175.00₹255.3517
Aug ’23₹230.35
₹229.47
-0.4%
13.7%₹300.00₹175.00₹244.4017
Jul ’23₹207.00
₹227.44
+9.9%
16.9%₹300.00₹140.00₹221.8518
Jun ’23₹232.75
₹226.59
-2.6%
18.5%₹300.00₹130.00₹215.3017
May ’23₹242.35
₹225.53
-6.9%
18.5%₹300.00₹130.00₹201.1017
Apr ’23₹245.45
₹215.50
-12.2%
18.2%₹288.00₹130.00₹190.2516

Analyst Forecast: Target price is lower than the current share price.


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