Tata Motors Limited (Formerly TATA ENG & LOCOMOTIVE CO)

India Country flag India
Sector: Commercial Vehicles & Trucks
Ticker: 500570
ISIN: INE155A01022
Factsheet Factsheet

Market multiple valuation of Tata Motors Limited ( 500570 | IND)

The most common multiple used in the valuation of stocks is the P/Earnings NTM multiple (Price to Earnings). P/E relates the current share price with the market expectations in terms of Earnings Per Share. This multiple is used to compare a company's market value with its earnings. A company with a high P/Earnings NTM is considered to be overvalued; a company with a low P/Earnings NTM is considered to be undervalued.
The P/Earnings NTM ratio of Tata Motors Limited is significantly higher than the median of its peer group: around 7.00. The company valuation of Tata Motors Limited according to these metrics is way above the market valuation of its peer group.
The P/Earnings NTM ratio of Tata Motors Limited is significantly lower than the average of its sector (Commercial Vehicles & Trucks): 11.69. The company valuation of Tata Motors Limited according to these metrics is way below the market valuation of its sector.
The P/Earnings NTM ratio of Tata Motors Limited is significantly lower than its historical 5-year average: 17.2. The (current) company valuation of Tata Motors Limited is therefore way below its valuation average over the last five years.

Valuation
P/E Last P/E (e) 2025P/E NTM
Tata Motors LimitedFree trialFree trialFree trial
International PeersFree trialFree trialFree trial
Commercial Vehicles & Trucks12.0612.0911.69
BSE SENSEXN/AN/AN/A
India20.0921.1021.22
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Beta (Ref: BSE SENSEX)
Levered betaUnlevered beta
1-YearN/AN/A
2-YearN/AN/A
3-YearN/AN/A
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Stock Perf excl. Dividends (in INR)
500570BSE SENSEXRel. Perf.
Year-to-Date-13.6%2.9%-16.5%
1-Week-2.7%0.7%-3.4%
1-Month5.5%7.2%-1.7%
1-Year-36.1%9.4%-45.5%
3-Year58.5%45.1%13.4%
5-Year679.5%156.9%522.7%
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International Peers - Tata Motors Limited
Company NameCtryMarket
Cap.
last (mUSD)
Tata Motors LimitedIND29 386
International Peers Median1.45
Mahindra & Mahindra Ltd...IND40 548
Hyundai Motor CompanyKOR33 505
General Motors CompanyUSA49 988
Ashok Leyland LimitedIND7 692
KIA Corp.KOR25 873
GPRV Analysis
Created with Highcharts 4.1.70/102/104/106/108/1010/10
Tata Motors Limited
Intl. Peers
U.S Patents No. 7,882,001 & 8,082,201
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Net Sales Chart
Created with Highcharts 4.1.7Millions INR201920202021202220232024 (e)2025 (e)2026 (e)2027 (e)0M2.5M5M7.5M
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Quotes Chart

1-Year Rebased Stock Chart

  • Tata Motors Limited
  • BSE SENSEX
Created with Highcharts 4.1.7Jan '25Sep '24May '25-50%-25%0%25%
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Did you know ?

On the Infront Analytics platform, there are two ways to identify the listed peers which most closely resemble a private firm:
- with Peer Tracker if you already know a listed peer.
Peer Tracker is a patented technology tool for building peer groups using industry classifications. The degree of similarity between two companies is calculated comparing their sector footprints and measured using comparability scores.
- with Market Screener if you have no listed peer in mind.
Market Screener is a dedicated interface for screening companies using multiple criteria, identifying peers, searching for comparable companies in a specific business sector.

About Market Multiples

Many methods can be used to value a company. In reality, business valuation is often a combination of these different approaches. One of the most widely used quantitative methods is the market multiples method. The market valuation is utilized generally as a primary market input, to provide an objective starting point for the valuation. Put simply, this method multiplies the sales or profits of a business by an industry averaged multiplier to calculate the Market Value of the business.
Current multiples include:
- Historical multiples based on standardized financials for the last completed fiscal period: Last, Last Twelve Months (LTM);
- Forward multiples based on consensus estimates for the current fiscal period and next ones: Next Twelve Months (NTM), FY0, FY1.
Current multiples based on per-share metrics (such as earnings per share or book value per share) are calculated using the last closing price, while current multiples based on company-level metrics (such as net sales, EBIT or EBITDA) are calculated using the current market cap or EV (Enterprise Value).