Tata Motors Limited (TMCV) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Tata Motors Limited stock ₹181, price ₹429, that is 57.8% below the price, quality 69 out of 100. Rating: strongly overvalued. Calculated from audited financials with 24 of our 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 2, 2026.
How to read this chart
12‑month range ₹314.05 – ₹499.66 · fair‑value band ₹135.75 – ₹226.26 · the ₹429.05 price screens above the ₹181.00 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 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.
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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.
Stock analysis
Tata Motors Limited (TMCV) currently trades at ₹429.05, while our model-based Fair Value estimate is ₹181.00, 58% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of ₹331.70 per share, and 0 of the 24 models we run sit above the ₹429.05 price.
Bear case: the Economic Profit group reads lowest at ₹48.47, and 24 of the 24 models stay below the price. Data coverage for this calculation is high.
Scenario range: ₹135.75 (bear) to ₹226.26 (bull), the price of ₹429.05 sits above 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 69/100 (solid quality), in the Consumer Cyclical sector.
Mixed Growth: Spin-off in 2026: revenue and profit before it include the divested business. Growth is measured afresh from 2026.
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.
Key figures
Market cap ₹1.6T (≈ $16.7B) Large · P/E ratio 25.0 · P/S ratio 1.68 · EPS (TTM) ₹17.15 · Dividend yield 0.9% · Net margin 6.7% · Return on equity 26.1% · Return on assets (EBIT) 6.2%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 55 out of 100 (low confidence).
What moves the price
The share trades about 14% below its 52-week high and 37% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at 7% fair-value upside, at −58%, TMCV screens richer than that median.
Fair Value models
Bear₹135.75Fair Value ₹181.00Bull₹226.26
Price ₹429.05 · Downside -57.8%
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 (₹7.93 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.55/100
Spin-off in 2026: revenue and profit before it include the divested business. Growth is measured afresh from 2026.
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: only 3 usable fiscal years, at least 4 required
not computed
Growth Forecast
Little optimism in the price
The price assumes more growth than the company has delivered so far and less 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).
+3.5%
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.
+7.7%
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 −0.6% a year for the price and +3.4% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (17 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.Negative
Recent news coverage is more negative than average.
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.Auto Manufacturers · 108 stocks
Beats the industry median on 8/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score69 · Top 25%
Fair Value upside−57.8% · Bottom 25%
Profitability
Return on equity (12 months)26.1% · Top 25%
Return on assets5.8% · Top 25%
Net margin (12 months)6.7% · Top 25%
Operating margin (12 months)7.3% · Above median
Growth and dividend
Revenue growth (quarter YoY)35.1% · Top 25%
Dividend yield (12 months)0.9% · Bottom 25%
Balance sheet
Debt / equity0.11× · Below median
Valuation Multiplesvs Auto Manufacturers median · lower = cheaper
P/E (12 months)25.0× · Pricier than median
P/B12.40× · Priciest 25%
P/S (12 months)1.68× · Priciest 25%
Price / free cash flow (fiscal year)11.8× · Cheaper than median
EV/EBITDA16.2× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 42
FUTURE (revenue growth)100· sector 39
PAST (return on equity)100· sector 25
HEALTH (low debt)95· sector 93
DIVIDEND (yield)19· sector 51
VALUE 0: the price sits above our fair-value range.
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 Motors Limited (TMCV) overvalued or undervalued?
As of Nov 2, 2026, our model estimates a fair value of ₹181.00 versus a price of ₹429.05, about 58% lower (overvalued).
What is the fair value of TMCV?
Our model-based fair value for Tata Motors Limited is ₹181.00 (as of Nov 2, 2026), built from audited fundamentals. The current price: ₹429.05.
What is the quality score of TMCV?
Tata Motors Limited has a Quality Score of 69/100. 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 Motors Limited (TMCV)?
Our model-based price target is the fair value of ₹181.00 (as of Nov 2, 2026) from 24 valuation models. Cautious scenario ₹135.75, optimistic scenario ₹226.26. It is a calculation from audited fundamentals, not an analyst target.
What is the Tata Motors Limited stock forecast for 2026?
Our models put fair value at ₹181.00, about 58% lower versus a price of ₹429.05 (overvalued). Cautious scenario ₹135.75, optimistic scenario ₹226.26. The calculation is refreshed regularly with new filings.
What is the revenue of Tata Motors Limited (TMCV)?
Tata Motors Limited reported trailing-twelve-month revenue of about ₹940B (latest available figure, as of Nov 2, 2026).
Does Tata Motors Limited pay a dividend?
Tata Motors Limited currently shows a dividend yield of 0.93% relative to its recent price (as of Nov 2, 2026).
What growth is priced into Tata Motors Limited (TMCV)?
For today's price to be fair in a discounted-cash-flow model, Tata Motors Limited would have to grow free cash flow by +3.5 % per year for five years (discount rate 11.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 2 years revenue grew -55.9 % per year. As of Nov 2, 2026.
What discount rate (WACC) does the fair value of TMCV use?
Our models discount Tata Motors Limited at 11.9 %: a base by market capitalisation (large), 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 Motors Limited that is +3.5 % per year a year over ten years, using the same discount rate (11.9 %) and the same formula as our fair value.
How much growth has Tata Motors Limited (TMCV) delivered so far?
Over the past 2 years revenue at Tata Motors Limited grew -55.9 % a year. The price currently implies +3.5 % 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 Motors Limited (TMCV) growing?
The median revenue growth in the sector is +8.6 % a year. That is the yardstick for the growth priced into Tata Motors Limited (+3.5 % 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 Motors Limited (TMCV)?
The free-cash-flow yield on the price is 8.47 %: that much free cash flow Tata Motors Limited produces per unit of market value. When it exceeds the discount rate of our models (11.9 %), 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 Motors Limited (TMCV)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Tata Motors Limited it is ₹181.00 per share (as of Nov 2, 2026), against a price of ₹429.05. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Tata Motors Limited stock overvalued or undervalued in 2026?
As of Nov 2, 2026, TMCV trades above its calculated fair value: price ₹429.05, fair value ₹181.00, a gap of about −58% (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 TMCV?
No. The price is what the market pays today (₹429.05); the fair value is what the company's own numbers justify (₹181.00). For Tata Motors Limited the two are ₹248.05 per share apart. That gap is exactly why we show both numbers side by side.
How much is Tata Motors Limited worth?
The market values Tata Motors Limited at about ₹1.6T (market capitalisation, as of Nov 2, 2026). Per share that is ₹429.05; our models calculate a fair value of ₹181.00 per share.
What do the bullish and bearish scenarios say about TMCV?
Our models span a range for Tata Motors Limited: cautious scenario ₹135.75, base ₹181.00, optimistic ₹226.26 per share (as of Nov 2, 2026, price ₹429.05). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of TMCV?
Tata Motors Limited trades at a price-to-earnings ratio of 25.0 (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 ₹181.00 is built from several models across several years. Other multiples: P/B 12.4, P/S 1.7, EV/EBITDA 16.2.
How solid is the balance sheet of Tata Motors Limited (TMCV)?
Balance-sheet figures for Tata Motors Limited (as of Nov 2, 2026): return on equity 26.1%, debt of 0.11 per unit of equity. They feed the Quality Score of 69/100, which measures business quality independently of the share price.
How far is TMCV from its 52-week high?
Tata Motors Limited trades at ₹429.05, about 14% below its 52-week high of ₹499.66 and 37% above the low of ₹314.05 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of ₹181.00 is for.
Which stocks are comparable to Tata Motors Limited?
From the same area (Consumer Cyclical) we also value Tesla, Inc, Toyota Motor Corporation, BYD Company, Ferrari N.V, 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 Motors Limited stock attractive at the current price?
The data as of Nov 2, 2026: price ₹429.05, calculated fair value ₹181.00 (−58%), Quality Score 69/100, 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 TMCV calculated?
We run Tata Motors Limited through 24 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 ₹181.00, 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 Motors 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 Motors Limited (TMCV)?
The closing price on Nov 5, 2026 was ₹429.05. Our model-based fair value is ₹181.00, about 58% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Tata Motors Limited right now?
The price sits above even our optimistic bull case (₹226.26). The favourable scenario is already priced in. Solid but not exceptional quality (69/100) and above fair value, neither a clear bargain nor a standout compounder.
Key figures of Tata Motors Limited
How large is the market capitalisation of Tata Motors Limited (TMCV)?
The market capitalisation of Tata Motors Limited is ₹1.6T (≈ $16.7B). 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 Motors Limited (TMCV)?
The price-to-sales ratio of Tata Motors Limited is 1.68 (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 Motors Limited (TMCV)?
Earnings per share at Tata Motors Limited are ₹17.15 (price ÷ EPS = P/E 25.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Tata Motors Limited (TMCV)?
The dividend yield of Tata Motors Limited is 0.9% (payout 23.3%). 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 Motors Limited (TMCV)?
The net margin of Tata Motors Limited is 6.7% (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 Motors Limited (TMCV)?
The return on equity (ROE) of Tata Motors Limited is 26.1% (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 Motors Limited (TMCV)?
On an EBIT basis the return on assets of Tata Motors Limited is 6.2% (avg 3y). 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 Motors Limited (TMCV)?
The operating margin of Tata Motors Limited is 7.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Tata Motors Limited (TMCV)?
Revenue at Tata Motors Limited is growing +35.1% versus a year earlier. 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 Motors Limited (TMCV)?
Earnings per share at Tata Motors Limited are growing +83.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Tata Motors Limited (TMCV) hold?
Tata Motors Limited holds more cash than debt, ₹21.6B net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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Broad data
Nov 2, 2026