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Tata Motors Limited (TMCV) Fair Value & Analysis

Consumer Cyclical · IN · Market cap ₹1.6T (≈ $16.5B) · ISIN INE1TAE01010

What is Tata Motors Limited really worth?

TM Tata Motors Limited TMCV · NSE
Price₹458.20
Fair Value₹106.97
Upside−76.7%
Quality68/100

A solid business, but trading 328% above our fair value of ₹106.97.

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Strengths

Low debt · generates free cash flow

Risks

!Mixed Growth
!Thin margins · 3.6% net margin
!Mixed vs. peers (7/14)
!Moderate moat 56/100
!Weak on dividend: 17 out of 100

For context

·0.87% dividend yield
Evidence: High Range ₹80.22 – ₹133.71

Fair value as of: Aug 28, 2026

From 12 valuation models · updated 8 days ago

Fair value updated Aug 28, 2026, revised from ₹181.02 to ₹106.97 (−40.9%) since Aug 13, 2026. Share price +1.8% 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 (₹133.71). The favourable scenario is already priced in.
  • Solid but not exceptional quality (68/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (10 months)

₹499.66 ₹314.05 Fair Value ₹106.97 Nov 2025 Sep 2026

White line = price, green steps = our fair value per fiscal year. As of Aug 28, 2026.

How to read this chart

10‑month range ₹314.05 – ₹499.66 · fair‑value band ₹80.22 – ₹133.71 · the ₹458.20 price screens above the ₹106.97 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Aug 28, 2026.

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Analysis

Tata Motors Limited (TMCV) currently trades at ₹458.20, while our model-based Fair Value estimate is ₹106.97, implying the stock looks roughly 328.3% overvalued today. The Quality Score stands at 68/100 (solid quality), in the Consumer Cyclical sector. Bull case: the Growth DCF group reads highest at a median of ₹370.40 per share, and 1 of the 12 models we run sit above the ₹458.20 price. Bear case: the Asset-Based group reads lowest at ₹23.17, and 11 of the 12 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Tata Motors Limited generated revenue of ₹850B at a net margin of 3.6%. Revenue grew 19.4% year over year. It earns a return on equity of 26.1%. The balance sheet holds a net cash position of ₹21.6B. Fundamentals as of Aug 28, 2026

Our scenario range runs from ₹80.22 (bear case) to ₹133.71 (bull case); at ₹458.20, 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 10% below its 52-week high and 50% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −17% fair-value upside, at −77%, TMCV screens richer 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 ₹1.82 per share, which is 1.7 % 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.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (₹23.17 to ₹562.33). Read the values as a conservative anchor, not as a price target.
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
Growth DCF best evidence ₹408.18 ₹562.33 ₹836.68 70
Owner Earnings ₹118.91 ₹161.88 ₹244.58 68
Rev-Margin DCF ₹269.10 ₹370.40 ₹497.07 65
All 12 models by family
DCF Models
Owner Earnings ₹118.91 ₹161.88 ₹244.58 68
5Y P/E Exit ₹198.43 ₹239.59 ₹289.92 64
10Y P/E Exit ₹267.63 ₹303.28 ₹334.45 58
Earnings-Based
Graham-Dodd ₹55.95 ₹68.38 ₹76.93 60
Dividend Discount
Gordon GGM ₹60.16 ₹66.16 ₹75.38 62
DDM Multi-Stage ₹60.16 ₹76.78 ₹100.81 60
Multiples
P/E Multiple ₹80.22 ₹106.97 ₹133.71 63
P/B Multiple ₹36.31 ₹48.41 ₹60.51 55
Asset-Based
NCAV (Graham) ₹17.29 ₹23.17 ₹34.58 54
Growth DCF
Growth DCF best evidence ₹408.18 ₹562.33 ₹836.68 70
Rev-Margin DCF ₹269.10 ₹370.40 ₹497.07 65
Economic Profit
Residual Income ₹51.48 ₹61.92 ₹176.63 59

Widest divergence: Growth DCF (₹370.40) versus Asset-Based (₹23.17). Highest evidence: Growth DCF (70).

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Key figures & financial health

P/E ratio 55.7
P/S ratio 2.01 P/E × margin
EPS (TTM) ₹8.23 price ÷ EPS = P/E 55.7
Dividend yield 0.9% payout 48.6%
Net margin 3.6% FY2026
Return on equity 26.1% TTM
More key figures
Profitability
Return on assets (EBIT) 6.2% avg 3y
Operating margin 10.8% TTM
Growth
Revenue (TTM) ₹850B TTM
Revenue growth (YoY) +19.4%
EPS growth (YoY) +33.4%
Balance sheet & cash flow
Free cash flow ₹134B FY2026
Net cash ₹21.6B FY2026

Figures from reported company fundamentals · as of Aug 28, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 68/100

Of which business quality 64 · Market factors (momentum, volatility) 61

Profitability 64
Margins and returns on capital today
Quality Growth 30
Are margins and returns improving?
Cashflow 82
Earnings quality: real cash, not paper profit
Fin. Strength 42
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 48
Calm price path (market factor)
Momentum 60
Price trend over the last 3–12 months (market factor)
52W Momentum 78
Distance to the 52-week high (market factor)
Net Issuance 80
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 Motors Limited engages in the manufacturing of commercial vehicles. It offers utility vehicles, pick-ups, trucks, and buses. The company operates in India and South Korea, as well as international presence across Africa, the Middle East, Latin America, Southeast Asia, and SAARC countries.

Full company description

Tata Motors Limited engages in the manufacturing of commercial vehicles. It offers utility vehicles, pick-ups, trucks, and buses. The company operates in India and South Korea, as well as international presence across Africa, the Middle East, Latin America, Southeast Asia, and SAARC countries. The company was formerly known as TML Commercial Vehicles Limited and changed its name to Tata Motors Limited in October 2025. Tata Motors Limited was incorporated in 2024 and is based in Mumbai, India.

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

Revenue & earnings trend

FY2024 – FY2026 · reported fiscal years

Tata Motors Limited reported revenue of ₹839B in FY2026 versus ₹4.3T in FY2024, a compound −55.9%/yr. Reported net income was ₹30.3B in FY2026, compounding −69.3%/yr from FY2024.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹839B
Value creation/yr We only publish this rate when it is defensible. Reason: only 3 usable fiscal years, at least 4 required
not computed
Revenue −55.9%/yr
FY24 ₹4.3T
FY25 ₹4.4T
FY26 ₹839B
Net income −69.3%/yr
FY24 ₹320B
FY25 ₹230B
FY26 ₹30.3B

TMCV screens 328% overvalued. Compare with Toyota Motor Corporation →

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

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Auto Manufacturers · 115 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 66 · Top 25%
Fair Value upside −77% · Bottom 25%
Return on equity (TTM) 26% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 4% · Above median
Operating margin (TTM) 8% · Top 25%
Revenue growth −38% · Bottom 25%
Dividend yield (TTM) 0.9% · Bottom 25%
Debt / equity 0.11× · Lower than median

Valuation Multiples vs Auto Manufacturers median · lower = cheaper

P/E (TTM) 55.7× · Pricier than 75% of peers
P/B 12.22× · Pricier than 75% of peers
P/S (TTM) 1.86× · Pricier than 75% of peers
P/FCF 0.1× · Cheaper than 75% of peers
EV/EBITDA 17.6× · 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
VALUE0 · sector 24
FUTURE0 · sector 27
PAST100 · sector 22
HEALTH95 · sector 94
DIVIDEND17 · sector 51

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

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 Auto Manufacturers stocks, each showing price versus our Fair Value estimate (as of Aug 28, 2026).

Stock Price Fair Value vs Fair Value
Toyota Motor Corporation TM $191.84 $247.83 +29%
BYD Company 81211 HK$76.90 HK$48.59 −37%
Hyundai Motor Company 005380 418,500 KRW 567,393 KRW +36%
Ferrari N.V RACE €355.50 €167.67 −53%
General Motors Company GM $86.27 $52.69 −39%
Ford Motor Company F $13.88 $11.51 −17%
Mercedes-Benz Group MBG €46.95 €106.16 +126%
Dr. Ing. h.c. F. Porsche AG P911 €43.91 €17.34 −61%
Maruti Suzuki India Limited MARUTI ₹12,694 ₹8,236 −35%
Volkswagen AG VOW3 €77.42 €248.34 +221%

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Frequently asked questions

Is Tata Motors Limited (TMCV) overvalued or undervalued?
As of Aug 28, 2026, our model estimates a fair value of ₹106.97 versus a price of ₹458.20, about −77% upside (overvalued).
What is the fair value of TMCV?
Our model-based fair value for Tata Motors Limited is ₹106.97 (as of Aug 28, 2026), built from audited fundamentals. The current price: ₹458.20.
What is the quality score of TMCV?
Tata Motors Limited has a Quality Score of 68/100. 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 Motors Limited (TMCV)?
Tata Motors Limited reported trailing-twelve-month revenue of about ₹850B (latest available figure, as of Aug 28, 2026).
What is the net profit margin of TMCV?
The net profit margin of Tata Motors Limited is about 3.6%, meaning it keeps roughly 3.6% of revenue as net income. Based on the latest reported figures.
Does Tata Motors Limited pay a dividend?
Tata Motors Limited currently shows a dividend yield of about 0.87% relative to its recent price (as of Aug 28, 2026).
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