Tata Communications Intrinsic Value
Tata Communications (TATACOMM) median intrinsic value is ₹479.58 from 9 valuation models (range ₹320–₹1134), vs current price ₹1598.60 — -70.0% downside (Trading Above Calculated Value), margin of safety -100.0%. For current market price and key ratios, visit TATACOMM stock price BSE.
TATACOMM Valuation Methods Summary — DCF, Graham Number & P/E
Tata Communications intrinsic value across 9 models vs current price ₹1598.60 — upside/downside and value range per method. Browse TATACOMM quarterly financials for revenue, profit, balance sheet and cash flow data.
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹479.58 | ₹383.66 - ₹575.50 | -70.0% | EPS: ₹36.96, Sector P/E: 12x |
| Book Value Method | asset | ₹319.72 | ₹287.75 - ₹351.69 | -80.0% | Book Value/Share: ₹120.95, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹742.96 | ₹668.66 - ₹817.26 | -53.5% | Revenue/Share: ₹928.70, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹1134.32 | ₹1020.89 - ₹1247.75 | -29.0% | EBITDA: ₹5388.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹948.25 | ₹758.60 - ₹1137.90 | -40.7% | CF Growth: 5.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹479.58 | ₹431.62 - ₹527.54 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹479.58 | ₹431.62 - ₹527.54 | -70.0% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹799.30 | ₹719.37 - ₹879.23 | -50.0% | ROE: 30.1%, P/E Multiple: 16x |
| Graham Defensive Method | conservative | ₹479.58 | ₹431.62 - ₹527.54 | -70.0% | EPS: ₹36.96, BVPS: ₹120.95 |
TATACOMM Intrinsic Value vs Market Price — All Valuation Models
Tata Communications fair value range ₹320–₹1134 vs current market price ₹1598.60 across 9 valuation models. Compare with Tata Communications valuation methods to assess whether the stock is under or overvalued.
TATACOMM Intrinsic Value Analysis — Undervalued or Overvalued?
Tata Communications median intrinsic value ₹479.58, current price ₹1598.60 — Trading Above Calculated Value by 70.0%, margin of safety -100.0%.
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 ₹479.58 (median value). With the current market price of ₹1598.60, this represents a -70.0% variance from our estimated fair value.
The valuation range spans from ₹319.72 to ₹1134.32, indicating ₹319.72 - ₹1134.32.
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%.
TATACOMM Financial Health — Key Ratios vs Industry Benchmarks
Tata Communications financial ratios — ROE, debt-to-equity, profit margins and liquidity vs industry benchmarks and their impact on intrinsic value.
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 0.64 | Industry Standard: 2.0+ | Below 1.5 | Measures short-term liquidity capacity |
| Return on Equity | 30.1% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 20.0% | Industry Standard: 20%+ | Above 20% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.93x | Industry Standard: 1.0x+ | Above 0.5x | Measures asset utilization efficiency |
TATACOMM Cash Flow Quality — Operating & Free Cash Flow
Tata Communications operating cash flow, free cash flow, quality rating and sustainability score by period — key inputs to DCF intrinsic value calculation.
| 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 |