Tata Communications Limited (TATACOMM) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Tata Communications Limited stock ₹1,283, price ₹1,705, that is 24.8% below the price, quality 41 out of 100. Rating: overvalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 2, 2026.
How to read this chart
60‑month range ₹832.46 – ₹2,107 · fair‑value band ₹785.43 – ₹1,791 · the ₹1,705 price screens above the ₹1,283 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 2, 2026.
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Tata Communications Limited provides telecom services worldwide. The company operates through Data Services, Voice Solutions, Payment Solutions, Transformation Services, Campaign Registry, and Real Estate segments.
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It provides voice and data transmission services; internet connectivity services; and other value-added services, such as unified conferencing and collaboration, managed hosting, mobile global roaming and signaling, transponder lease, and television up-linking, and other managed services, as well as sells and leases bandwidth on undersea cable systems.
The company also offers end-to-end automated teller machines deployment, POS enablement, financial inclusion, card issuance and related managed services, and switching services to banking sector; cyber security; data center colocation services; network management and support services; system and platform integration services for Internet of Things (IoT) solutions; and provides IT consultation and support on services.
In addition, it provides networking services, including managed LAN/WAN, private lines, business internet, hybrid WAN, and cloud connectivity; unified communications as a service; cloud solutions; Edge platform; cyber security services, such as cloud security, security assessment, consulting services, cyber threat detection and response, and networking security; managed SASE; IoT fabric solutions comprising connectivity, management, orchestration, and data analytics; carrier services, such as wholesale voice transport and termination, mobile messaging exchange, voice access services, strategic sourcing, and fraud prevention as a service; and content delivery network solutions.
Further, the company engages in letting, leasing, licensing, or development of immovable properties. The company was formerly known as Videsh Sanchar Nigam Limited and changed its name to Tata Communications Limited in 2008.
Tata Communications Limited was incorporated in 1986 and is based in Mumbai, India.
Stock analysis
Tata Communications Limited (TATACOMM) currently trades at ₹1,705, while our model-based Fair Value estimate is ₹1,283, 25% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of ₹758.84 per share, and 0 of the 24 models we run sit above the ₹1,705 price.
Bear case: the Earnings-Based group reads lowest at ₹256.00, and 24 of the 24 models stay below the price. Data coverage for this calculation is medium.
Scenario range: ₹785.43 (bear) to ₹1,791 (bull), the price of ₹1,705 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 41/100 (below-average quality), in the Communication Services sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Tata Communications Limited reported revenue of ₹248B in FY2026 versus ₹167B in FY2022, a compound +10.4%/yr. Reported net income was ₹10.4B in FY2026, compounding −8.4%/yr from FY2022.
Key figures
Market cap ₹507B (≈ $5.4B) Mid · P/E ratio 44.8 · P/S ratio 1.95 · EPS (TTM) ₹38.06 · Dividend yield 1.0% · Net margin 4.2% · Return on equity 33.8% · Return on assets (EBIT) 21.0% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 56 out of 100 (medium confidence).
What moves the price
The share trades about 18% below its 52-week high and 27% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Communication Services peers we cover trades at 51% fair-value upside, at −25%, TATACOMM screens richer than that median.
Fair Value models
Bear₹785.43Fair Value ₹1,283Bull₹1,791
Price ₹1,705 · Downside -24.8%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (₹12.51 per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
FCF DCF₹472.81₹746.86₹1,09880
Growth DCF₹475.34₹712.50₹997.9578
Owner Earnings₹510.70₹800.36₹1,17276
All 24 models by family
DCF Models
FCF DCF₹472.81₹746.86₹1,09880
Owner Earnings₹510.70₹800.36₹1,17276
5Y Revenue Exit₹436.35₹770.81₹1,19271
5Y EBITDA Exit₹541.53₹967.03₹1,45874
5Y P/E Exit₹396.21₹695.92₹1,00570
10Y Revenue Exit₹428.94₹713.38₹1,08566
10Y EBITDA Exit₹503.25₹833.42₹1,26467
10Y P/E Exit₹421.47₹667.57₹959.9063
Earnings-Based
Graham-Dodd₹248.96₹770.38₹1,02465
Lynch FV₹166.84₹238.35₹309.8561
PEG = 1.0₹166.84₹238.35₹309.8557
EPV₹221.05₹273.64₹316.8374
Dividend Discount
Gordon GGM₹183.16₹316.86₹421.7268
DDM Multi-Stage₹183.16₹278.84₹339.8867
Multiples
P/E Multiple₹604.10₹805.47₹1,00763
P/S Multiple₹466.80₹622.41₹778.0158
EV/EBIT₹434.78₹714.80₹994.8264
EV/EBITDA₹482.81₹778.84₹1,07566
EV/Revenue₹231.77₹504.79₹777.8151
Growth DCF
Growth DCF₹475.34₹712.50₹997.9578
Rev-Margin DCF₹436.35₹775.61₹1,16671
Economic Profit
Residual Income₹176.42₹221.34₹340.3975
ROIC Compounder₹237.08₹320.43₹411.5472
Growth Earnings
Growth-Adj P/E₹496.12₹708.74₹921.3667
The fair value above starts from this blend and is adjusted for a year distorted by one-off effects.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.75/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+7.3%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+11.6%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+7.7%
Start year 2021 (pandemic). Over 10 years: +3.1% a year
Revenue growth 28 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+5.1%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. 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.
−5.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year−6.0%
Dividend (yield on the price)1.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−6.0% vs 60.7%, slowing
Profit margin 1998 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.17% → 8%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+27.6%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+8.7%
Yearly sales growth analysts expect, extended to five years.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +22.5% a year for the price and +4.4% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (15 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Neutral
Recent news coverage is roughly neutral, about typical for how stocks are covered.
Compare Tata Communications Limited with another stock
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Telecom Services · 234 stocks
Beats the industry median on 3/13 measures
Overall it trails its industry peers.
Valuation
Quality Score41 · Bottom 25%
Fair Value upside−24.8% · Below median
Profitability
Return on equity (12 months)33.8% · Top 25%
Return on assets3.7% · Above median
Net margin (12 months)4.2% · Below median
Operating margin (12 months)10.2% · Below median
Growth and dividend
Revenue growth (quarter YoY)9.6% · Above median
Dividend yield (12 months)1.0% · Bottom 25%
Balance sheet
Debt / equity1.79× · Highest 25%
Valuation Multiplesvs Telecom Services median · lower = cheaper
P/E (12 months)44.8× · Priciest 25%
P/B14.71× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Tata Communications Limited (TATACOMM) overvalued or undervalued?
As of Nov 2, 2026, our model estimates a fair value of ₹1,283 versus a price of ₹1,705, about 25% lower (overvalued).
What is the fair value of TATACOMM?
Our model-based fair value for Tata Communications Limited is ₹1,283 (as of Nov 2, 2026), built from audited fundamentals. The current price: ₹1,705.
What is the quality score of TATACOMM?
Tata Communications Limited has a Quality Score of 41/100. 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 price target for Tata Communications Limited (TATACOMM)?
Our model-based price target is the fair value of ₹1,283 (as of Nov 2, 2026) from 24 valuation models. Cautious scenario ₹785.43, optimistic scenario ₹1,791. It is a calculation from audited fundamentals, not an analyst target.
What is the Tata Communications Limited stock forecast for 2026?
Our models put fair value at ₹1,283, about 25% lower versus a price of ₹1,705 (overvalued). Cautious scenario ₹785.43, optimistic scenario ₹1,791. The calculation is refreshed regularly with new filings.
What is the revenue of Tata Communications Limited (TATACOMM)?
Tata Communications Limited reported trailing-twelve-month revenue of about ₹260B (latest available figure, as of Nov 2, 2026).
Does Tata Communications Limited pay a dividend?
Tata Communications Limited currently shows a dividend yield of 1.03% relative to its recent price (as of Nov 2, 2026).
How much is the dividend of Tata Communications Limited (TATACOMM) and when is the ex-dividend date?
Tata Communications Limited pays a dividend of ₹17.50 per share a year, a dividend yield of 1.0%. The last ex-dividend date was Jun 19, 2026. A dividend has been paid every year since 2011. The payout ratio is 46.0% of earnings. Free cash flow covers the dividend 3.13 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Tata Communications Limited (TATACOMM)?
For today's price to be fair in a discounted-cash-flow model, Tata Communications Limited would have to grow free cash flow by +27.6 % per year for five years (discount rate 11.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +7.7 % per year. As of Nov 2, 2026.
What discount rate (WACC) does the fair value of TATACOMM use?
Our models discount Tata Communications Limited at 11.8 %: a base by market capitalisation (mid), damped by beta 0.82, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Tata Communications Limited that is +27.6 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (11.8 %) and the same formula as our fair value.
How much growth has Tata Communications Limited (TATACOMM) delivered so far?
Over the past 5 years revenue at Tata Communications Limited grew +7.7 % a year. The price currently implies free-cash-flow growth of +27.6 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Tata Communications Limited (TATACOMM) growing?
The median revenue growth in the sector is +3.8 % a year. That is the yardstick for the growth priced into Tata Communications Limited (+27.6 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Tata Communications Limited (TATACOMM)?
The free-cash-flow yield on the price is 3.08 %: that much free cash flow Tata Communications Limited produces per unit of market value. When it exceeds the discount rate of our models (11.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Tata Communications Limited (TATACOMM)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Tata Communications Limited it is ₹1,283 per share (as of Nov 2, 2026), against a price of ₹1,705. It is the blended result of 24 valuation models in 7 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Growth DCF, Economic Profit, Growth Earnings).
Is Tata Communications Limited stock overvalued or undervalued in 2026?
As of Nov 2, 2026, TATACOMM trades above its calculated fair value: price ₹1,705, fair value ₹1,283, a gap of about −25% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of TATACOMM?
No. The price is what the market pays today (₹1,705); the fair value is what the company's own numbers justify (₹1,283). For Tata Communications Limited the two are ₹422.30 per share apart. That gap is exactly why we show both numbers side by side.
How much is Tata Communications Limited worth?
The market values Tata Communications Limited at about ₹507B (market capitalisation, as of Nov 2, 2026). Per share that is ₹1,705; our models calculate a fair value of ₹1,283 per share.
What do the bullish and bearish scenarios say about TATACOMM?
Our models span a range for Tata Communications Limited: cautious scenario ₹785.43, base ₹1,283, optimistic ₹1,791 per share (as of Nov 2, 2026, price ₹1,705). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of TATACOMM?
Tata Communications Limited trades at a price-to-earnings ratio of 44.8 (as of Nov 2, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹1,283 is built from several models across several years. Median P/E at fiscal year-end, 7 fiscal years (2017 to 2026), reported earnings: 24.2. Other multiples: P/B 14.7, P/S 1.9, EV/EBITDA 12.6.
How solid is the balance sheet of Tata Communications Limited (TATACOMM)?
Balance-sheet figures for Tata Communications Limited (as of Nov 2, 2026): return on equity 33.8%, debt of 1.79 per unit of equity. They feed the Quality Score of 41/100, which measures business quality independently of the share price.
How far is TATACOMM from its 52-week high?
Tata Communications Limited trades at ₹1,705, about 18% below its 52-week high of ₹2,070 and 27% above the low of ₹1,338 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of ₹1,283 is for.
Which stocks are comparable to Tata Communications Limited?
From the same area (Communication Services) we also value China Mobile Limited, Verizon Communications Inc, T-Mobile US, Inc, AT&T Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Tata Communications Limited stock attractive at the current price?
The data as of Nov 2, 2026: price ₹1,705, calculated fair value ₹1,283 (−25%), Quality Score 41/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of TATACOMM calculated?
We run Tata Communications Limited through 24 models from 7 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of ₹1,283 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Tata Communications Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Tata Communications Limited (TATACOMM)?
The closing price on Nov 6, 2026 was ₹1,705. Our model-based fair value is ₹1,283, about 25% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Tata Communications Limited right now?
Weak quality (41/100) and above fair value at the same time, the margin of safety is missing on both counts. A fairly wide model range (₹785.43 to ₹1,791) leaves room in how you read the outcome.
Where does the earnings growth of Tata Communications Limited (TATACOMM) come from?
Earnings per share at Tata Communications Limited grew +13.2 % a year from 2015 to 2026. Broken into its drivers: revenue per share +2.2 %, EBIT margin +4.3 %, tax rate +2.9 %, residual (interest, one-offs) +3.2 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Tata Communications Limited
How large is the market capitalisation of Tata Communications Limited (TATACOMM)?
The market capitalisation of Tata Communications Limited is ₹507B (≈ $5.4B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Tata Communications Limited (TATACOMM)?
The price-to-sales ratio of Tata Communications Limited is 1.95 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Tata Communications Limited (TATACOMM)?
Earnings per share at Tata Communications Limited are ₹38.06 (price ÷ EPS = P/E 44.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Tata Communications Limited (TATACOMM)?
The dividend yield of Tata Communications Limited is 1.0% (payout 46.0%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Tata Communications Limited (TATACOMM)?
The net margin of Tata Communications Limited is 4.2% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Tata Communications Limited (TATACOMM)?
The return on equity (ROE) of Tata Communications Limited is 33.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Tata Communications Limited (TATACOMM)?
On an EBIT basis the return on assets of Tata Communications Limited is 21.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Tata Communications Limited (TATACOMM)?
The operating margin of Tata Communications Limited is 10.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Tata Communications Limited (TATACOMM)?
Revenue at Tata Communications Limited is growing +9.6% versus a year earlier (3y avg +11.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Tata Communications Limited (TATACOMM)?
Earnings per share at Tata Communications Limited are growing +86.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Tata Communications Limited (TATACOMM) carry?
The net debt of Tata Communications Limited is ₹116B (fiscal year 2026, ≈ 7.4 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Nov 2, 2026