Tata Chemicals Intrinsic Value

TATACHEM • Chemicals
Current Stock Price
₹746.45
Primary Intrinsic Value
₹223.94
Market Cap
₹190.3K Cr
-31.6% Downside
Median Value
₹510.75
Value Range
₹224 - ₹1553
Assessment
Trading Above Calculated Value
Safety Margin
-46.1%

TATACHEM Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹223.94 ₹179.15 - ₹268.73 -70.0% EPS: ₹12.08, Sector P/E: 12x
Book Value Method asset ₹882.39 ₹794.15 - ₹970.63 +18.2% Book Value/Share: ₹882.39, P/B: 1.0x
Revenue Multiple Method revenue ₹510.75 ₹459.68 - ₹561.83 -31.6% Revenue/Share: ₹638.43, P/S: 0.8x
EBITDA Multiple Method earnings ₹517.25 ₹465.53 - ₹568.98 -30.7% EBITDA: ₹2660.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹1553.21 ₹1242.57 - ₹1863.85 +108.1% CF Growth: 14.1%, Discount: 15%
PEG Ratio Method growth ₹223.94 ₹201.55 - ₹246.33 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹223.94 ₹201.55 - ₹246.33 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
Graham Defensive Method conservative ₹489.73 ₹440.76 - ₹538.70 -34.4% EPS: ₹12.08, BVPS: ₹882.39
Method Types: Earnings Asset DCF Growth Dividend Conservative

Want to compare with current market value? Check TATACHEM share price latest .

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 ₹746.45, this represents a -31.6% variance from our estimated fair value.

The valuation range spans from ₹223.94 to ₹1553.21, indicating ₹223.94 - ₹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 31.6%.

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
Debt to Equity Ratio 1.68 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
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

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