Tata Communications Intrinsic Value
TATACOMM Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹541.41 | ₹433.13 - ₹649.69 | -70.0% | EPS: ₹25.68, Sector P/E: 12x |
| Book Value Method | asset | ₹360.94 | ₹324.85 - ₹397.03 | -80.0% | Book Value/Share: ₹106.11, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹683.00 | ₹614.70 - ₹751.30 | -62.2% | Revenue/Share: ₹853.75, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹900.61 | ₹810.55 - ₹990.67 | -50.1% | EBITDA: ₹4540.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹948.25 | ₹758.60 - ₹1137.90 | -47.5% | CF Growth: 5.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹541.41 | ₹487.27 - ₹595.55 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹541.41 | ₹487.27 - ₹595.55 | -70.0% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹902.35 | ₹812.12 - ₹992.59 | -50.0% | ROE: 24.2%, P/E Multiple: 16x |
| Graham Defensive Method | conservative | ₹541.41 | ₹487.27 - ₹595.55 | -70.0% | EPS: ₹25.68, BVPS: ₹106.11 |
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Valuation Comparison Chart
TATACOMM Intrinsic Value Analysis
What is the intrinsic value of TATACOMM?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Tata Communications (TATACOMM) is ₹541.41 (median value). With the current market price of ₹1804.70, this represents a -70.0% variance from our estimated fair value.
The valuation range spans from ₹360.94 to ₹948.25, indicating ₹360.94 - ₹948.25.
Is TATACOMM undervalued or overvalued?
Based on our multi-method analysis, Tata Communications (TATACOMM) appears to be trading above calculated value by approximately 70.0%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 0.65 | Industry Standard: 2.0+ | Below 1.5 | Measures short-term liquidity capacity |
| Debt to Equity Ratio | 8.79 | Industry Standard: <0.5 | Above 1.0 | Indicates financial leverage level |
| Return on Equity | 24.2% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 19.0% | Industry Standard: 20%+ | Above 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.92x | Industry Standard: 1.0x+ | Above 0.5x | Measures asset utilization efficiency |
Related Pages for Tata Communications
Additional stock information and data for TATACOMM
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹2,911 Cr | ₹1,825 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹3,182 Cr | ₹1,861 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹4,384 Cr | ₹3,466 Cr | Positive Free Cash Flow | 8/10 |
| March 2022 | ₹4,204 Cr | ₹3,757 Cr | Positive Free Cash Flow | 8/10 |
| March 2021 | ₹3,180 Cr | ₹2,177 Cr | Positive Free Cash Flow | 8/10 |