The Tata Power Company Limited (TATAPOWER.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-48.6%

₹182.11

vs ₹354.10 price

Levered DCF

-₹609.60

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

1.3

Distress zone

Rating

D+

Overall 1 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	32.32×	30.17×	35.2×	18.24×	44.61×	32.57×	10.5×	11.32×
P/B	3.07×	3.33×	4.02×	2.2×	3.55×	1.54×	0.56×	1.36×
P/S	1.94×	1.83×	2.12×	1.15×	1.86×	1.05×	0.38×	0.83×
EV / EBITDA	11.21×	12.15×	16.74×	13.97×	16.63×	10.94×	7.57×	10.55×
Gross margin	25.2%	34.8%	30.4%	27.7%	32.1%	34.0%	37.4%	32.3%
Operating margin	13.3%	27.8%	23.6%	20.9%	23.4%	26.8%	32.3%	27.4%
Net margin	6.0%	6.1%	6.0%	6.1%	4.1%	3.4%	3.5%	7.3%
Current ratio	0.78×	0.66×	0.69×	0.71×	0.64×	0.62×	0.66×	0.55×
Debt / equity	2.02×	1.75×	1.69×	1.84×	2.28×	2.09×	2.65×	2.66×
Interest coverage	1.58×	3.88×	3.41×	2.79×	2.71×	2.25×	2.14×	2.11×
Dividend yield	0.6%	0.5%	0.5%	0.9%	0.8%	2.0%	7.0%	1.7%
Payout ratio	19.2%	16.1%	17.3%	16.8%	37.8%	61.9%	75.7%	18.7%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	9.5%	11.0%	11.4%	11.6%	7.8%	5.1%	5.2%	12.0%
Return on invested capital	4.3%	10.9%	9.7%	7.8%	9.8%	8.4%	8.9%	8.4%
Return on assets	2.1%	2.5%	2.6%	2.6%	1.5%	1.1%	1.1%	2.6%
Free cash flow yield	-9.1%	-3.8%	-0.6%	-0.8%	-0.7%	14.9%	47.0%	4.0%
Earnings yield	3.1%	3.3%	2.8%	5.3%	2.2%	3.3%	9.3%	8.8%
Enterprise value	₹1.9T	₹1.7T	₹1.8T	₹1.1T	₹1.3T	₹773.7B	₹610.1B	₹726.6B
Net debt / EBITDA	3.96×	3.63×	4.73×	6.07×	6.27×	6.07×	6.21×	6.95×
Cash conversion cycle (days)	-1	12	19	32	-4	-12	13	15