Tata Technologies Intrinsic Value

TATATECH • Information Technology
Current Stock Price
₹652.75
Primary Intrinsic Value
₹195.84
Market Cap
₹5287 Cr
-32.3% Downside
Median Value
₹441.85
Value Range
₹196 - ₹1148
Assessment
Trading Above Calculated Value
Safety Margin
-47.7%

TATATECH Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹195.84 ₹156.67 - ₹235.01 -70.0% EPS: ₹16.32, Sector P/E: 12x
Book Value Method asset ₹441.85 ₹397.67 - ₹486.04 -32.3% Book Value/Share: ₹441.85, P/B: 1.0x
Revenue Multiple Method revenue ₹544.00 ₹489.60 - ₹598.40 -16.7% Revenue/Share: ₹680.00, P/S: 0.8x
EBITDA Multiple Method earnings ₹773.33 ₹696.00 - ₹850.66 +18.5% EBITDA: ₹1044.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹801.16 ₹640.93 - ₹961.39 +22.7% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹195.82 ₹176.24 - ₹215.40 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹195.82 ₹176.24 - ₹215.40 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹1147.65 ₹1032.89 - ₹1262.42 +75.8% ROE: 18.6%, P/E Multiple: 14x
Graham Defensive Method conservative ₹402.80 ₹362.52 - ₹443.08 -38.3% EPS: ₹16.32, BVPS: ₹441.85
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

TATATECH Intrinsic Value Analysis

What is the intrinsic value of TATATECH?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Tata Technologies (TATATECH) is ₹441.85 (median value). With the current market price of ₹652.75, this represents a -32.3% variance from our estimated fair value.

The valuation range spans from ₹195.82 to ₹1147.65, indicating ₹195.82 - ₹1147.65.

Is TATATECH undervalued or overvalued?

Based on our multi-method analysis, Tata Technologies (TATATECH) appears to be trading above calculated value by approximately 32.3%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 11.62 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 1.86 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 18.6% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 16.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 0.83x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹699 Cr ₹667 Cr Positive Free Cash Flow 8/10
March 2024 ₹294 Cr ₹294 Cr Positive Free Cash Flow 8/10
March 2023 ₹401 Cr ₹181 Cr Positive Free Cash Flow 7/10
March 2022 ₹-39 Cr ₹-39 Cr Negative Cash Flow 3/10
March 2021 ₹1,113 Cr ₹781 Cr Positive Free Cash Flow 8/10