Tata Steel Limited (TATASTEEL) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Tata Steel Limited stock ₹148, price ₹182, that is 18.6% below the price, quality 57 out of 100. Rating: overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 5, 2026.
How to read this chart
60‑month range ₹76.07 – ₹216.20 · fair‑value band ₹98.60 – ₹212.27 · the ₹182.00 price screens above the ₹148.06 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. As of Nov 5, 2026.
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Tata Steel Limited engages in the manufacture and distribution of steel products in India and internationally.
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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.
Stock analysis
Tata Steel Limited (TATASTEEL) currently trades at ₹182.00, while our model-based Fair Value estimate is ₹148.06, 19% 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 ₹166.33 per share, and 7 of the 26 models we run sit above the ₹182.00 price.
Bear case: the Asset-Based group reads lowest at ₹43.63, and 19 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: ₹98.60 (bear) to ₹212.27 (bull), the price of ₹182.00 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 57/100 (solid quality), in the Basic Materials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
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.
Key figures
Market cap ₹2.3T (≈ $24.0B) Large · P/E ratio 20.4 · P/S ratio 0.95 · EPS (TTM) ₹8.93 · Dividend yield 2.2% · Net margin 4.6% · Return on equity 11.2% · Return on assets (EBIT) 29.8%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 43 out of 100 (low confidence).
What moves the price
The share trades about 16% below its 52-week high and 15% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Basic Materials peers we cover trades at −49% fair-value upside, at −19%, TATASTEEL screens cheaper than that median.
Fair Value models
Bear₹98.60Fair Value ₹148.06Bull₹212.27
Price ₹182.00 · Downside -18.6%
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 (₹2.97 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.
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.71/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+6.2%
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.
−1.6%
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.
+8.2%
Start year 2021 (pandemic). Over 10 years: +8.1% a year
Revenue growth 21 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.
+13.6%
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What shareholders gained per year (last 5 years), in INR (mathematically smoothed) ⓘ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. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip. 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.
−4.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year−6.8%
Dividend (yield on the price)2.2%
Profit margin 2005 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.36% → 9%
2026 sits 75% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
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).
+15.6%
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.
+5.4%
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 +11.0% a year for the price and +1.2% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (9 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.
AI conclusion: Limited differentiation typical of the commodity steel sector forms the main weakness while capacity expansion in India supports higher output as the primary strength.
Main risk: Cheaper Chinese steel imports could squeeze prices and margins for Tata Steel's Indian operations by undercutting domestic producers.
Bull case: Tata Steel could leverage its Indian capacity expansions and AI-driven efficiencies to capture more domestic demand and offset import pressures while advancing lower-carbon production in Europe.
Bear case: Persistent cheap Chinese imports and rising EU carbon costs could compress margins across regions and force production cuts or delayed investments if decarbonisation proves too expensive.
Tata Steel is expanding capacity at Kalinganagar with new facilities and doubled industrial gas supply from Linde to enable higher output. Domestic steel demand is forecast to rise 8-10 percent in the second half on strong consuming sectors. Our models see it as overvalued. Will the India growth more than offset the costs and uncertainties of the European decarbonisation shift?
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.Steel · 408 stocks
Beats the industry median on 6/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score57 · Above median
Fair Value upside−18.6% · Below median
Profitability
Return on equity (12 months)11.2% · Top 25%
Return on assets3.6% · Above median
Net margin (12 months)4.6% · Above median
Operating margin (12 months)9.3% · Above median
Growth and dividend
Revenue growth (quarter YoY)14.3% · Above median
Dividend yield (12 months)2.2% · Below median
Balance sheet
Debt / equity0.62× · Highest 25%
Valuation Multiplesvs Steel median · lower = cheaper
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 Steel Limited (TATASTEEL) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of ₹148.06 versus a price of ₹182.00, about 19% lower (overvalued).
What is the fair value of TATASTEEL?
Our model-based fair value for Tata Steel Limited is ₹148.06 (as of Nov 5, 2026), built from audited fundamentals. The current price: ₹182.00.
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 price target for Tata Steel Limited (TATASTEEL)?
Our model-based price target is the fair value of ₹148.06 (as of Nov 5, 2026) from 26 valuation models. Cautious scenario ₹98.60, optimistic scenario ₹212.27. It is a calculation from audited fundamentals, not an analyst target.
What is the Tata Steel Limited stock forecast for 2026?
Our models put fair value at ₹148.06, about 19% lower versus a price of ₹182.00 (overvalued). Cautious scenario ₹98.60, optimistic scenario ₹212.27. The calculation is refreshed regularly with new filings.
What is the revenue of Tata Steel Limited (TATASTEEL)?
Tata Steel Limited reported trailing-twelve-month revenue of about ₹2.4T (latest available figure, as of Nov 5, 2026).
Does Tata Steel Limited pay a dividend?
Tata Steel Limited currently shows a dividend yield of 2.20% relative to its recent price (as of Nov 5, 2026).
What growth is priced into Tata Steel Limited (TATASTEEL)?
For today's price to be fair in a discounted-cash-flow model, Tata Steel Limited would have to grow free cash flow by +15.6 % per year for five years (discount rate 11.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +8.2 % per year. As of Nov 5, 2026.
What discount rate (WACC) does the fair value of TATASTEEL use?
Our models discount Tata Steel Limited at 11.4 %: a base by market capitalisation (large), damped by beta 0.83, 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 Steel Limited that is +15.6 % per year a year over ten years, using the same discount rate (11.4 %) and the same formula as our fair value.
How much growth has Tata Steel Limited (TATASTEEL) delivered so far?
Over the past 5 years revenue at Tata Steel Limited grew +8.2 % a year. The price currently implies +15.6 % per year free-cash-flow growth a 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 Steel Limited (TATASTEEL) growing?
The median revenue growth in the sector is +9.8 % a year. That is the yardstick for the growth priced into Tata Steel Limited (+15.6 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Tata Steel Limited (TATASTEEL)?
The free-cash-flow yield on the price is 5.95 %: that much free cash flow Tata Steel Limited produces per unit of market value. When it exceeds the discount rate of our models (11.4 %), 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 Steel Limited (TATASTEEL)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Tata Steel Limited it is ₹148.06 per share (as of Nov 5, 2026), against a price of ₹182.00. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Tata Steel Limited stock overvalued or undervalued in 2026?
As of Nov 5, 2026, TATASTEEL trades above its calculated fair value: price ₹182.00, fair value ₹148.06, a gap of about −19% (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 TATASTEEL?
No. The price is what the market pays today (₹182.00); the fair value is what the company's own numbers justify (₹148.06). For Tata Steel Limited the two are ₹33.94 per share apart. That gap is exactly why we show both numbers side by side.
How much is Tata Steel Limited worth?
The market values Tata Steel Limited at about ₹2.3T (market capitalisation, as of Nov 5, 2026). Per share that is ₹182.00; our models calculate a fair value of ₹148.06 per share.
What do the bullish and bearish scenarios say about TATASTEEL?
Our models span a range for Tata Steel Limited: cautious scenario ₹98.60, base ₹148.06, optimistic ₹212.27 per share (as of Nov 5, 2026, price ₹182.00). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of TATASTEEL?
Tata Steel Limited trades at a price-to-earnings ratio of 20.4 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹148.06 is built from several models across several years. Other multiples: P/B 2.2, P/S 0.9, EV/EBITDA 8.3.
How solid is the balance sheet of Tata Steel Limited (TATASTEEL)?
Balance-sheet figures for Tata Steel Limited (as of Nov 5, 2026): return on equity 11.2%, debt of 0.62 per unit of equity. They feed the Quality Score of 57/100, which measures business quality independently of the share price.
How far is TATASTEEL from its 52-week high?
Tata Steel Limited trades at ₹182.00, about 16% below its 52-week high of ₹216.20 and 15% above the low of ₹157.74 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of ₹148.06 is for.
Which stocks are comparable to Tata Steel Limited?
From the same area (Basic Materials) we also value Nucor Corporation, ArcelorMittal S.A, Steel Dynamics, Inc, JSW Steel Limited, 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 Steel Limited stock attractive at the current price?
The data as of Nov 5, 2026: price ₹182.00, calculated fair value ₹148.06 (−19%), Quality Score 57/100, from 26 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 TATASTEEL calculated?
We run Tata Steel Limited through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹148.06, 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 15.5% above its aggregate fair value. Tata Steel 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 Steel Limited (TATASTEEL)?
The closing price on Nov 5, 2026 was ₹182.00. Our model-based fair value is ₹148.06, about 19% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Tata Steel Limited right now?
Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range (₹98.60 to ₹212.27) leaves room in how you read the outcome.
Key figures of Tata Steel Limited
How large is the market capitalisation of Tata Steel Limited (TATASTEEL)?
The market capitalisation of Tata Steel Limited is ₹2.3T (≈ $24.0B). 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 Steel Limited (TATASTEEL)?
The price-to-sales ratio of Tata Steel Limited is 0.95 (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 Steel Limited (TATASTEEL)?
Earnings per share at Tata Steel Limited are ₹8.93 (price ÷ EPS = P/E 20.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Tata Steel Limited (TATASTEEL)?
The dividend yield of Tata Steel Limited is 2.2% (payout 44.8%). 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 Steel Limited (TATASTEEL)?
The net margin of Tata Steel Limited is 4.6% (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 Steel Limited (TATASTEEL)?
The return on equity (ROE) of Tata Steel Limited is 11.2% (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 Steel Limited (TATASTEEL)?
On an EBIT basis the return on assets of Tata Steel Limited is 29.8% (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 Steel Limited (TATASTEEL)?
The operating margin of Tata Steel Limited is 9.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Tata Steel Limited (TATASTEEL)?
Revenue at Tata Steel Limited is growing +14.3% versus a year earlier (3y avg −1.6%). 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 Steel Limited (TATASTEEL)?
Earnings per share at Tata Steel Limited are growing +11.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Tata Steel Limited (TATASTEEL) carry?
The net debt of Tata Steel Limited is ₹823B (fiscal year 2026, ≈ 6.1 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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Broad data
Nov 5, 2026