Tata Chemicals Intrinsic Value
TATACHEM • Chemicals
Current Stock Price
₹651.90
Primary Intrinsic Value
₹195.57
Market Cap
₹166.2K Cr
-21.7%
Downside
Median Value
₹510.75
Value Range
₹196 - ₹1553
Assessment
Trading Above Calculated Value
Safety Margin
-27.6%
TATACHEM Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹195.57 | ₹156.46 - ₹234.68 | -70.0% | EPS: ₹12.08, Sector P/E: 12x |
| Book Value Method | asset | ₹882.39 | ₹794.15 - ₹970.63 | +35.4% | Book Value/Share: ₹882.39, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹510.75 | ₹459.68 - ₹561.83 | -21.7% | Revenue/Share: ₹638.43, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹625.88 | ₹563.29 - ₹688.47 | -4.0% | EBITDA: ₹2660.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹1553.21 | ₹1242.57 - ₹1863.85 | +138.3% | CF Growth: 14.1%, Discount: 15% |
| PEG Ratio Method | growth | ₹195.57 | ₹176.01 - ₹215.13 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹195.57 | ₹176.01 - ₹215.13 | -70.0% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| Graham Defensive Method | conservative | ₹489.73 | ₹440.76 - ₹538.70 | -24.9% | EPS: ₹12.08, BVPS: ₹882.39 |
Method Types:
Earnings
Asset
DCF
Growth
Dividend
Conservative
Valuation Comparison Chart
TATACHEM Intrinsic Value Analysis
What is the intrinsic value of TATACHEM?
Based on our comprehensive analysis using 8 different valuation methods, the estimated intrinsic value of Tata Chemicals (TATACHEM) is ₹510.75 (median value). With the current market price of ₹651.90, this represents a -21.7% variance from our estimated fair value.
The valuation range spans from ₹195.57 to ₹1553.21, indicating ₹195.57 - ₹1553.21.
Is TATACHEM undervalued or overvalued?
Based on our multi-method analysis, Tata Chemicals (TATACHEM) appears to be trading above calculated value by approximately 21.7%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 0.74 | Industry Standard: 2.0+ | Below 1.5 | Measures short-term liquidity capacity |
| Return on Equity | 2.7% | Industry Standard: 15%+ | Below 10% | Measures shareholder return efficiency |
| Operating Margin | 12.0% | Industry Standard: 20%+ | Above 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.43x | Industry Standard: 1.0x+ | Below 0.5x | Measures asset utilization efficiency |
Related Pages for Tata Chemicals
Additional stock information and data for TATACHEM
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2024 | ₹3,016 Cr | ₹2,714 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹2,971 Cr | ₹2,397 Cr | Positive Free Cash Flow | 8/10 |
| March 2022 | ₹1,645 Cr | ₹1,237 Cr | Positive Free Cash Flow | 8/10 |
| March 2021 | ₹2,037 Cr | ₹1,464 Cr | Positive Free Cash Flow | 8/10 |
| March 2020 | ₹1,780 Cr | ₹638 Cr | Positive Free Cash Flow | 7/10 |