Tata Steel Intrinsic Value
TATASTEEL Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹119.52 | ₹95.62 - ₹143.42 | -33.6% | EPS: ₹9.96, Sector P/E: 12x |
| Book Value Method | asset | ₹450.30 | ₹405.27 - ₹495.33 | +150.0% | Book Value/Share: ₹732.58, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹360.24 | ₹324.22 - ₹396.26 | +100.0% | Revenue/Share: ₹1880.67, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹360.24 | ₹324.22 - ₹396.26 | +100.0% | EBITDA: ₹33668.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹450.30 | ₹360.24 - ₹540.36 | +150.0% | CF Growth: 5.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹63.74 | ₹57.37 - ₹70.11 | -64.6% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹82.07 | ₹73.86 - ₹90.28 | -54.4% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹360.24 | ₹324.22 - ₹396.26 | +100.0% | ROE: 13.9%, P/E Multiple: 12x |
| Graham Defensive Method | conservative | ₹405.18 | ₹364.66 - ₹445.70 | +125.0% | EPS: ₹9.96, BVPS: ₹732.58 |
Want to compare with current market value? Check TATASTEEL share price latest .
Valuation Comparison Chart
TATASTEEL Intrinsic Value Analysis
What is the intrinsic value of TATASTEEL?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Tata Steel (TATASTEEL) is ₹360.24 (median value). With the current market price of ₹180.12, this represents a +100.0% variance from our estimated fair value.
The valuation range spans from ₹63.74 to ₹450.30, indicating ₹63.74 - ₹450.30.
Is TATASTEEL undervalued or overvalued?
Based on our multi-method analysis, Tata Steel (TATASTEEL) appears to be trading below calculated value by approximately 100.0%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 0.67 | Industry Standard: 2.0+ | Below 1.5 | Measures short-term liquidity capacity |
| Debt to Equity Ratio | 3.06 | Industry Standard: <0.5 | Above 1.0 | Indicates financial leverage level |
| Return on Equity | 13.9% | Industry Standard: 15%+ | Above 10% | Measures shareholder return efficiency |
| Operating Margin | 14.0% | Industry Standard: 20%+ | Above 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.84x | Industry Standard: 1.0x+ | Above 0.5x | Measures asset utilization efficiency |
Related Pages for Tata Steel
Additional stock information and data for TATASTEEL
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹23,512 Cr | ₹16,520 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹20,301 Cr | ₹13,175 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹21,683 Cr | ₹12,594 Cr | Positive Free Cash Flow | 8/10 |
| March 2022 | ₹44,381 Cr | ₹38,929 Cr | Positive Free Cash Flow | 8/10 |
| March 2021 | ₹44,327 Cr | ₹39,609 Cr | Positive Free Cash Flow | 8/10 |