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Tata Motors Limited (TMCV) Fair Value & Analysis

Consumer Cyclical · IN · Market cap ₹1.6T

TM Tata Motors Limited TMCV · NSE
Price₹459.65
Fair Value₹164.56
Upside-64.2%
Quality65/100
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Mixed Growth
Thin margins · 3.6% net margin
Low debt · generates free cash flow
0.95% dividend yield
Mixed vs. peers (7/14)
Moderate moat 56/100
Evidence: Medium Range ₹123.42 – ₹205.70 Share as image

Fair value as of: Jul 13, 2026

From 24 valuation models · updated 25 days ago

Fair value updated Jul 13, 2026, revised from ₹106.97 to ₹164.56 (+53.8%) since Jun 26, 2026. Share price +8.2% over the past month.

A solid business, but screening 64% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹205.70). The favourable scenario is already priced in.
  • Solid but not exceptional quality (65/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (9 months)

₹499.66 ₹314.05 Fair Value ₹164.56 Nov 2025 Aug 2026

White line = price, green steps = our fair value per fiscal year. As of Jul 13, 2026.

How to read this chart

9‑month range ₹314.05 – ₹499.66 · fair‑value band ₹123.42 – ₹205.70 · the ₹459.65 price screens above the ₹164.56 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Jul 13, 2026.

Full chart & analysis →

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Analysis

Tata Motors Limited (TMCV) currently trades at ₹459.65, while our model-based Fair Value estimate is ₹164.56, implying the stock looks roughly 64.2% overvalued today. We read business quality at 65/100 (solid quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

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 Jul 13, 2026

Our scenario range runs from ₹123.42 (bear case) to ₹205.70 (bull case); at ₹459.65, 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 25% fair-value upside, at -64%, TMCV screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ₹408.18 ₹562.33 ₹836.68 80
Residual Income ₹51.48 ₹61.92 ₹176.63 76
Rev-Margin DCF ₹269.10 ₹370.40 ₹497.07 74
All 24 models by family
DCF Models
FCF DCF ₹389.08 ₹546.51 ₹849.49 38
Owner Earnings ₹118.91 ₹161.88 ₹244.58 31
5Y Revenue Exit ₹269.10 ₹361.98 ₹496.50 39
5Y EBITDA Exit ₹296.82 ₹409.97 ₹559.97 41
5Y P/E Exit ₹221.68 ₹279.85 ₹350.38 38
10Y Revenue Exit ₹306.07 ₹380.73 ₹458.58 36
10Y EBITDA Exit ₹328.72 ₹411.10 ₹496.71 37
10Y P/E Exit ₹282.06 ₹328.76 ₹370.78 35
Earnings-Based
Graham-Dodd ₹55.95 ₹68.38 ₹76.93 54
EPV ₹190.09 ₹220.56 ₹247.64 59
Dividend Discount
Gordon GGM ₹60.16 ₹66.16 ₹75.38 70
DDM Multi-Stage ₹60.16 ₹76.78 ₹100.81 61
Multiples
P/E Multiple ₹123.42 ₹164.56 ₹205.70 63
P/S Multiple ₹104.91 ₹139.88 ₹174.85 58
P/B Multiple ₹77.80 ₹103.74 ₹129.67 55
EV/EBIT ₹310.38 ₹408.02 ₹505.66 53
EV/EBITDA ₹280.51 ₹368.19 ₹455.88 54
EV/Revenue ₹214.91 ₹299.53 ₹384.15 43
Asset-Based
NCAV (Graham) ₹17.29 ₹23.17 ₹34.58 50
Growth DCF
Growth DCF ₹408.18 ₹562.33 ₹836.68 80
Rev-Margin DCF ₹269.10 ₹370.40 ₹497.07 74
Economic Profit
Residual Income ₹51.48 ₹61.92 ₹176.63 76
ROIC Compounder ₹190.09 ₹223.17 ₹253.97 72
Growth Earnings
Growth-Adj P/E ₹87.32 ₹124.74 ₹162.16 68

Widest divergence: Growth DCF (₹370.40) versus Asset-Based (₹23.17). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) ₹850B
Revenue growth (YoY) +19.4%
Net margin 3.6%
Return on equity 26.1%
Free cash flow ₹134B FY2026
P/E ratio 44.9
More key figures
Operating margin 10.8%
EPS (TTM) ₹8.23
Dividend yield 1.0%
EPS growth (YoY) +33.4%
Net cash ₹21.6B FY2026

Figures from reported company fundamentals · as of Jul 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 65/100

Of which business quality 67 · Market factors (momentum, volatility) 56

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 54
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 45
Calm price path (market factor)
Momentum 51
Price trend over the last 3–12 months (market factor)
52W Momentum 79
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.

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.
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 64% 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 · 119 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 65 · Top 25%
Fair Value upside −64% · 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) 1.0% · Bottom 25%
Debt / equity 0.11× · Lower than median

Valuation Multiples vs Auto Manufacturers median · lower = cheaper

P/E (TTM) 51.3× · 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

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.

VALUE 0 · sector 26
FUTURE 0 · sector 32
PAST 100 · sector 17
HEALTH 95 · sector 94
DIVIDEND 19 · sector 46

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Auto Manufacturers stocks, each showing price versus our Fair Value estimate (as of Jul 13, 2026).

Stock Price Fair Value vs Fair Value
Toyota Motor Corporation TM $179.76 $224.63 +25%
BYD Company 81211 HK$80.55 HK$50.85 -37%
Hyundai Motor Company 005380 425,000 KRW 616,918 KRW +45%
General Motors Company GM $77.72 $56.93 -27%
Bayerische Motoren Werke Aktiengesellschaft BMWM5N 1,909 MXN 2,944 MXN +54%
Ferrari N.V RACE $376.64 $228.05 -39%
Ford Motor Company F C$11.86 C$4.00 -66%
Mercedes-Benz Group BENZ C$20.44 C$35.15 +72%
Volkswagen AG VOW 2,149 CZK 7,191 CZK +235%
Maruti Suzuki India Limited MARUTI ₹13,803 ₹8,236 -40%

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Frequently asked questions

Is Tata Motors Limited (TMCV) overvalued or undervalued?
As of Jul 13, 2026, our model estimates a fair value of ₹164.56 versus a price of ₹459.65, about −64% (overvalued).
What is the fair value of TMCV?
Our model-based fair value for Tata Motors Limited is ₹164.56 (as of Jul 13, 2026), built from audited fundamentals. The current price is ₹459.65.
What is the quality score of TMCV?
Tata Motors Limited has a Quality Score of 65/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals 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 Jul 13, 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 0.95% relative to its recent price (as of Jul 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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