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Tata Steel Limited (TATASTEEL) Fair Value & Analysis

Basic Materials · IN · Market cap ₹2.3T (≈ $24.7B) · ISIN INE081A01020

What is Tata Steel Limited really worth?

TS Tata Steel Limited TATASTEEL · NSE
Price₹188.79
Fair Value₹145.39
Upside−23.0%
Quality57/100

A solid business, but trading 30% above our fair value of ₹145.39.

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Strengths

Healthy Growth (revenue 5y +8.2 %/yr)
Moderate debt · generates free cash flow

Risks

!Thin margins · 4.7% net margin
!Mixed vs. peers (7/14)
!Narrow moat 44/100
!Weak on valuation: 3 out of 100

For context

·2.12% dividend yield
Evidence: High Range ₹72.44 – ₹183.91

Fair value as of: Aug 27, 2026

From 26 valuation models · updated 8 days ago

Share price −2.2% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (₹183.91). The favourable scenario is already priced in.
  • Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (₹72.44 to ₹183.91) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

₹216.20 ₹76.07 Fair Value ₹145.39 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.

How to read this chart

60‑month range ₹76.07 – ₹216.20 · fair‑value band ₹72.44 – ₹183.91 · the ₹188.79 price screens above the ₹145.39 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 27, 2026.

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Analysis

Tata Steel Limited (TATASTEEL) currently trades at ₹188.79, while our model-based Fair Value estimate is ₹145.39, implying the stock looks roughly 29.9% overvalued today. The Quality Score stands at 57/100 (solid quality), in the Basic Materials sector. Bull case: the DCF Models group reads highest at a median of ₹177.06 per share, and 6 of the 26 models we run sit above the ₹188.79 price. Bear case: the Asset-Based group reads lowest at ₹54.89, and 20 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Tata Steel Limited generated revenue of ₹2.3T at a net margin of 4.7%. Revenue grew 12.5% year over year. It earns a return on equity of 11.2%. Net debt stands at ₹823B. Fundamentals as of Aug 27, 2026

Our scenario range runs from ₹72.44 (bear case) to ₹183.91 (bull case); at ₹188.79, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 16% below its 52-week high and 26% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at −29% fair-value upside, at −23%, TATASTEEL screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹2.01 per share, which is 1.4 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF ₹90.37 ₹177.28 ₹320.67 77
Growth DCF ₹92.43 ₹168.42 ₹285.35 76
EPV ₹80.88 ₹102.75 ₹122.19 74
All 26 models by family
DCF Models
FCF DCF ₹90.37 ₹177.28 ₹320.67 77
Owner Earnings ₹37.90 ₹90.63 ₹177.63 71
5Y Revenue Exit ₹97.70 ₹192.19 ₹314.98 70
5Y EBITDA Exit ₹118.73 ₹232.45 ₹367.63 73
5Y P/E Exit ₹67.37 ₹134.16 ₹205.15 69
10Y Revenue Exit ₹89.16 ₹177.06 ₹299.65 64
10Y EBITDA Exit ₹107.91 ₹206.01 ₹341.66 66
10Y P/E Exit ₹74.11 ₹135.32 ₹212.03 62
Earnings-Based
Graham-Dodd ₹58.85 ₹203.43 ₹273.24 64
Lynch FV ₹47.07 ₹67.25 ₹87.42 61
PEG = 1.0 ₹47.07 ₹67.25 ₹87.42 57
EPV ₹80.88 ₹102.75 ₹122.19 74
Dividend Discount
Gordon GGM ₹34.63 ₹75.60 ₹127.20 65
DDM Multi-Stage ₹34.63 ₹61.35 ₹78.79 66
Multiples
P/E Multiple ₹110.35 ₹147.13 ₹183.91 63
P/S Multiple ₹110.35 ₹147.13 ₹183.91 58
P/B Multiple ₹110.35 ₹147.13 ₹183.91 55
EV/EBIT ₹129.87 ₹187.51 ₹245.15 65
EV/EBITDA ₹152.35 ₹217.48 ₹282.62 67
EV/Revenue ₹106.81 ₹171.04 ₹235.27 53
Asset-Based
NCAV (Graham) ₹40.96 ₹54.89 ₹81.92 54
Growth DCF
Growth DCF ₹92.43 ₹168.42 ₹285.35 76
Rev-Margin DCF ₹97.70 ₹191.15 ₹301.49 71
Economic Profit
Residual Income ₹74.37 ₹84.77 ₹147.80 74
ROIC Compounder ₹80.88 ₹117.78 ₹169.52 71
Growth Earnings
Growth-Adj P/E ₹97.42 ₹139.17 ₹180.92 67

Widest divergence: DCF Models (₹177.06) versus Asset-Based (₹54.89). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 21.9
P/S ratio 1.02 P/E × margin
EPS (TTM) ₹8.64 price ÷ EPS = P/E 21.9
Dividend yield 2.1% payout 46.3%
Net margin 4.6% FY2026
Return on equity 11.2% TTM
More key figures
Profitability
Return on assets (EBIT) 29.8% avg 5y
Operating margin 9.7% TTM
Growth
Revenue (TTM) ₹2.3T TTM
Revenue growth (YoY) +12.5% 3y avg −1.6%
EPS growth (YoY) +125%
Balance sheet & cash flow
Free cash flow ₹135B FY2026
Net debt ₹823B FY2026 · ≈ 6.1 yrs of FCF

Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 54 · Market factors (momentum, volatility) 58

Profitability 45
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 52
Earnings quality: real cash, not paper profit
Fin. Strength 34
Balance sheet, leverage, solvency risk
Investment 90
Disciplined investing over empire-building
Low Volatility 78
Calm price path (market factor)
Momentum 44
Price trend over the last 3–12 months (market factor)
52W Momentum 58
Distance to the 52-week high (market factor)
Net Issuance 79
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

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, metallic coated, …

Full company description

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, 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, construction, consumer goods, energy and power, engineering, and material handling industries. Tata Steel Limited 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Tata Steel Limited reported revenue of ₹2.3T in FY2026 versus ₹2.4T in FY2022, a compound −1.2%/yr. Reported net income was ₹108B in FY2026, compounding −28.0%/yr from FY2022.

Growth Quality 71/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹2.3T
Latest YoY
+6.2%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−1.6%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.2%
Avg. revenue growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.6%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+9.0% (6.9 + 2.1)
Revenue −1.2%/yr
FY22 ₹2.4T
FY23 ₹2.4T
FY24 ₹2.3T
FY25 ₹2.2T
FY26 ₹2.3T
Net income −28.0%/yr
FY22 ₹402B
FY23 ₹87.6B
FY24 −₹44.4B
FY25 ₹34.2B
FY26 ₹108B

TATASTEEL screens 30% overvalued. Compare with Nucor Corporation →

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Cite: Fair Value Calculator (2026). "Tata Steel Limited Fair Value". https://www.fairvalue-calculator.com/stock/TATASTEEL

Peer Group

Steel · 398 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 57 · Top 25%
Fair Value upside −23% · Below median
Return on equity (TTM) 11% · Top 25%
Return on assets 5% · Top 25%
Net margin (TTM) 5% · Above median
Operating margin (TTM) 10% · Top 25%
Revenue growth 13% · Above median
Dividend yield (TTM) 2.1% · Below median
Debt / equity 0.62× · Higher than 75% of peers

Valuation Multiples vs Steel median · lower = cheaper

P/E (TTM) 21.9× · Pricier than median
P/B 2.28× · Pricier than 75% of peers
P/S (TTM) 1.01× · Pricier than median
P/FCF 0.2× · Cheaper than median
EV/EBITDA 8.8× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE3 · sector 12
FUTURE63 · sector 2
PAST45 · sector 16
HEALTH69 · sector 95
DIVIDEND42 · sector 49

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Steel stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).

Stock Price Fair Value vs Fair Value
Nucor Corporation NUE $250.50 $116.05 −54%
ArcelorMittal S.A MT €64.60 €46.04 −29%
JSW Steel Limited JSWSTEEL ₹1,296 ₹1,119 −14%
Steel Dynamics, Inc STLD $234.67 $127.14 −46%
500228 500228 ₹1,292 ₹1,079 −16%
Reliance, Inc RS $387.59 $217.81 −44%
Baoshan Iron & Steel Co 600019 ¥5.91 ¥8.07 +37%
POSCO Holdings PKX $63.13 $85.21 +35%
Jindal Steel & Power Limited JINDALSTEL ₹1,114 ₹429.44 −61%
Lloyds Metals and Energy Limited LLOYDSME ₹1,891 ₹793.69 −58%

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Frequently asked questions

Is Tata Steel Limited (TATASTEEL) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of ₹145.39 versus a price of ₹188.79, about −23% upside (overvalued).
What is the fair value of TATASTEEL?
Our model-based fair value for Tata Steel Limited is ₹145.39 (as of Aug 27, 2026), built from audited fundamentals. The current price: ₹188.79.
What is the quality score of TATASTEEL?
Tata Steel Limited has a Quality Score of 57/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Tata Steel Limited (TATASTEEL)?
Tata Steel Limited reported trailing-twelve-month revenue of about ₹2.3T (latest available figure, as of Aug 27, 2026).
What is the net profit margin of TATASTEEL?
The net profit margin of Tata Steel Limited is about 4.7%, meaning it keeps roughly 4.7% of revenue as net income. Based on the latest reported figures.
Does Tata Steel Limited pay a dividend?
Tata Steel Limited currently shows a dividend yield of about 2.12% relative to its recent price (as of Aug 27, 2026).
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