Tata Communications Intrinsic Value
Tata Communications (TATACOMM) median intrinsic value is ₹572.01 from 10 valuation models (range ₹381–₹1276), vs current price ₹1906.70 — -70.0% downside (Trading Above Calculated Value), margin of safety -100.0%. Analyse TATACOMM promoter holding to track promoter, FII and institutional holdings.
TATACOMM Valuation Methods Summary — DCF, Graham Number & P/E
Tata Communications intrinsic value across 10 models vs current price ₹1906.70 — upside/downside and value range per method. For current market price and key ratios, visit TATACOMM share price screener.
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹572.01 | ₹457.61 - ₹686.41 | -70.0% | EPS: ₹36.96, Sector P/E: 12x |
| Book Value Method | asset | ₹381.34 | ₹343.21 - ₹419.47 | -80.0% | Book Value/Share: ₹128.11, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹742.96 | ₹668.66 - ₹817.26 | -61.0% | Revenue/Share: ₹928.70, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹1134.32 | ₹1020.89 - ₹1247.75 | -40.5% | EBITDA: ₹5388.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹1276.11 | ₹1020.89 - ₹1531.33 | -33.1% | CF Growth: 1.6%, Discount: 15% |
| PEG Ratio Method | growth | ₹572.01 | ₹514.81 - ₹629.21 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹572.01 | ₹514.81 - ₹629.21 | -70.0% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹953.35 | ₹858.01 - ₹1048.69 | -50.0% | ROE: 28.4%, P/E Multiple: 16x |
| Graham Defensive Method | conservative | ₹572.01 | ₹514.81 - ₹629.21 | -70.0% | EPS: ₹36.96, BVPS: ₹128.11 |
| Dividend Yield Method | dividend | ₹572.01 | ₹514.81 - ₹629.21 | -70.0% | DPS: ₹17.50, Target Yield: 3.5% |
TATACOMM Intrinsic Value vs Market Price — All Valuation Models
Tata Communications fair value range ₹381–₹1276 vs current market price ₹1906.70 across 10 valuation models. Read TATACOMM dividend history for the complete payout history and dividend yield track record.
TATACOMM Intrinsic Value Analysis — Undervalued or Overvalued?
Tata Communications median intrinsic value ₹572.01, current price ₹1906.70 — 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 10 different valuation methods, the estimated intrinsic value of Tata Communications (TATACOMM) is ₹572.01 (median value). With the current market price of ₹1906.70, this represents a -70.0% variance from our estimated fair value.
The valuation range spans from ₹381.34 to ₹1276.11, indicating ₹381.34 - ₹1276.11.
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 | 28.4% | 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 2026 | ₹4,479 Cr | ₹3,762 Cr | Positive Free Cash Flow | 8/10 |
| 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 |