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Data-driven stock valuation

Tata Motors Limited (TMCV) fair value: what the stock is really worth

We calculate from audited financials what Tata Motors Limited is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily, free.

  1. Compare price with fair valuebelow fair value = cheap, above = expensive
  2. Check the quality50 and up solid, 75 and up strong
  3. Watch it or check another stockalert when fair value or trend changes

Consumer Cyclical · IN · Market cap ₹1.6T (≈ $17.2B) · ISIN INE1TAE01010

At a glance

TM Tata Motors Limited TMCV · NSE
Price₹444.95
Fair Value₹106.97
Upside−76.0%
Quality68/100

A solid business, but trading 316% above our fair value of ₹106.97.

As of Aug 28, 2026, the fair value of Tata Motors Limited is ₹106.97 per share against a price of ₹444.95, so the fair value sits 76% below the price. A model estimate from reported figures, not an analyst target.

!Mixed Growth
!Thin margins · 3.6% net margin
Low debt · generates free cash flow
·0.90% dividend yield
!Mixed vs. peers (7/14)
!Moderate moat 56/100
!Weak on dividend: 18 out of 100
Evidence: High Range ₹80.22 to ₹133.71

Fair value as of: Aug 28, 2026

From 12 valuation models · updated 13 days ago

Fair value updated Aug 28, 2026, revised from ₹181.02 to ₹106.97 (−40.9%) since Aug 13, 2026. Share price −1.2% over the past month.

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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 ₹444.95 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.

Full chart & analysis →

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Analysis

Tata Motors Limited (TMCV) currently trades at ₹444.95, while our model-based Fair Value estimate is ₹106.97, implying the stock looks roughly 316.0% 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 ₹444.95 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

Scenario range: ₹80.22 (bear) to ₹133.71 (bull), the price of ₹444.95 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target. The share trades about 13% below its 52-week high and 45% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −18% fair-value upside, at −76%, TMCV screens richer than that median.

Fair Value models

Based on fiscal year 2026 figures (about 5 months old). Earnings retained since then (₹1.89 per share) are deliberately not added.

Each model values the company its own way; the fair value above is the evidence-weighted blend. Evidence (0 to 100) shows how complete a model's inputs are. How we calculate →

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 54.1
P/S ratio 1.95 P/E × margin
EPS (TTM) ₹8.23 price ÷ EPS = P/E 54.1
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) 57

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 53
Price trend over the last 3–12 months (market factor)
52W Momentum 73
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 316% 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

Recent news

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

Peer Group

Auto Manufacturers · 114 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.

Valuation
Quality Score 66 · Top 25%
Fair Value upside −77% · Bottom 25%
Profitability
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%
Growth and dividend
Revenue growth −38% · Bottom 25%
Dividend yield (TTM) 0.9% · Bottom 25%
Balance sheet
Debt / equity 0.11× · Below median

Valuation Multiples vs Auto Manufacturers median · lower = cheaper

P/E (TTM) 54.1× · Priciest 25%
P/B 12.22× · Priciest 25%
P/S (TTM) 1.86× · Priciest 25%
P/FCF 0.1× · Cheapest 25%
EV/EBITDA 17.6× · Priciest 25%

What the price implies (reverse DCF)

The inverse question: what free-cash-flow growth must Tata Motors Limited deliver for ten years so that today's price is fair in our DCF model? Same formula, same discount rate as the fair value.

Implied FCF growth, 10 years+3.7 % per year
Achieved revenue growth, 2 years-55.9 % p.a.
Sector median revenue growth+8.1 %
FCF yield on price8.17 %
Discount rate (WACC) in the models11.9 %

The price demands an acceleration versus past growth: a high bar the company still has to clear. Ranking of the largest stocks →

Context: sector, industry, market

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 21
HEALTH95 · sector 94
DIVIDEND18 · sector 50

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 $188.78 $235.50 +25%
BYD Company 81211 HK$73.50 HK$46.64 −37%
Hyundai Motor Company 005380 418,500 KRW 567,393 KRW +36%
Ferrari N.V RACE €346.00 €167.67 −52%
General Motors Company GM $87.76 $52.69 −40%
Ford Motor Company F $14.00 $11.51 −18%
Mercedes-Benz Group MBG €47.69 €106.16 +123%
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 VOW €81.65 €248.34 +204%

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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 ₹444.95, about −76% 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: ₹444.95.
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 price target for Tata Motors Limited (TMCV)?
Our model-based price target is the fair value of ₹106.97 (as of Aug 28, 2026) from 12 valuation models. Cautious scenario ₹80.22, optimistic scenario ₹133.71. 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 ₹106.97, about −76% upside versus a price of ₹444.95 (overvalued). Cautious scenario ₹80.22, optimistic scenario ₹133.71. 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 ₹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 0.90% relative to its recent price (as of Aug 28, 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 +3.7 % per year for ten years (discount rate 11.9 %, then 2 % perpetual growth). Over the last 2 years revenue grew -55.9 % per year. As of Aug 28, 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 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 ₹106.97 per share (as of Aug 28, 2026), against a price of ₹444.95. It is the blended result of 12 valuation models (cash flow, earnings, asset, dividend).
Is Tata Motors Limited stock overvalued or undervalued in 2026?
As of Aug 28, 2026, TMCV trades above its calculated fair value: price ₹444.95, fair value ₹106.97, a gap of about −76% (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 (₹444.95); the fair value is what the company's own numbers justify (₹106.97). For Tata Motors Limited the two are ₹337.98 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 Aug 28, 2026). Per share that is ₹444.95; our models calculate a fair value of ₹106.97 per share.
What do the bullish and bearish scenarios say about TMCV?
Our models span a range for Tata Motors Limited: cautious scenario ₹80.22, base ₹106.97, optimistic ₹133.71 per share (as of Aug 28, 2026, price ₹444.95). 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 54.1 (as of Aug 28, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹106.97 is built from several models across several years. Other multiples: P/B 12.2, P/S 1.9, EV/EBITDA 17.6.
How solid is the balance sheet of Tata Motors Limited (TMCV)?
Balance-sheet figures for Tata Motors Limited (as of Aug 28, 2026): return on equity 26.1%, debt of 0.11 per unit of equity. They feed the Quality Score of 68/100, which measures business quality independently of the share price.
How far is TMCV from its 52-week high?
Tata Motors Limited trades at ₹444.95, about 13% below its 52-week high of ₹509.00 and 45% above the low of ₹306.30 (as of Aug 28, 2026). Distance from the high says nothing about value: that is what the fair value of ₹106.97 is for.
Which stocks are comparable to Tata Motors Limited?
From the same area (Consumer Cyclical) we also value Toyota Motor Corporation, BYD Company, Hyundai Motor 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 Aug 28, 2026: price ₹444.95, calculated fair value ₹106.97 (−76%), Quality Score 68/100, from 12 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 12 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 ₹106.97, with the spread shown as a cautious and an optimistic scenario.
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