Tata Steel (TATASTEEL.NS)
Materials · NSE · India
Fundamentals
Valuation and ratings
Tata Steel trades at ₹185.49, which is 79% below the ₹332.64 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 64 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 22.1 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Tata Steel
Tata Steel Limited engages in the manufacture and distribution of steel products in India and internationally. It offers reinforcement bars (rebars) and wire rods, cut-and-bend reinforcement bars, welded wire mesh, prefabricated cages (pre-cages), steel couplers and carpet reinforcement; hot-rolled, cold rolled, coated coil, tubes, rebar, wire rods; and metallic coated, pre-finished steels, alloy steels, and profiles and construction systems. The company also provides solutions in building envelopes, structural, fit-out, foundations, and highway engineering products, as well as operates steel service centers. It serves agricultural, automotive steels, construction, consumer goods, energy and power, engineering, and material handling industries. It has a strategic collaboration with Hindustan Zinc Limited to scale low-carbon zinc solutions. The company was incorporated in 1907 and is based in Mumbai, India.
TATASTEEL.NS passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Tata Steel (TATASTEEL.NS) undervalued?
Against our discounted cash flow estimate of ₹332.64, TATASTEEL.NS at ₹185.49 is 79% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is TATASTEEL.NS's P/E ratio?
TATASTEEL.NS trades at 22.1 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.