Tata Steel Limited (TATASTEEL.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

-12.0%

₹155.02

vs ₹176.25 price

Levered DCF

₹183.20

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

—

Rating

B-

Overall 2 / 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	22.18×	55.88×	-45.07×	14.57×	3.93×	12.73×	22.66×	6.07×
P/B	2.34×	2.1×	2.17×	1.24×	1.38×	1.32×	0.42×	0.9×
P/S	1.03×	0.87×	0.87×	0.52×	0.65×	0.63×	0.21×	0.39×
EV / EBITDA	9.17×	11.11×	12.58×	6.54×	3.36×	6.3×	8.19×	5.26×
Gross margin	43.3%	52.2%	50.8%	49.4%	63.0%	60.1%	54.1%	58.2%
Operating margin	8.8%	40.4%	39.7%	38.6%	52.0%	45.5%	39.1%	43.6%
Net margin	4.6%	1.6%	-1.9%	3.6%	16.5%	4.8%	1.0%	6.5%
Current ratio	0.75×	0.79×	0.72×	0.89×	1.02×	0.85×	0.95×	0.97×
Debt / equity	0.9×	1.04×	0.95×	0.82×	0.66×	1.19×	1.58×	1.46×
Interest coverage	2.87×	12.04×	12.11×	14.91×	23.24×	9.36×	7.69×	8.96×
Dividend yield	1.9%	2.3%	2.2%	4.9%	1.9%	1.2%	5.8%	1.9%
Payout ratio	41.6%	131.3%	-99.8%	71.8%	7.5%	15.4%	116.6%	11.6%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	10.6%	3.8%	-4.8%	8.5%	35.1%	10.1%	2.1%	14.8%
Return on invested capital	6.2%	15.5%	44.1%	19.0%	48.0%	22.1%	-23.5%	20.5%
Return on assets	3.6%	1.2%	-1.6%	3.0%	14.1%	3.1%	0.6%	4.4%
Free cash flow yield	5.6%	4.1%	1.0%	5.9%	21.4%	38.1%	31.3%	26.2%
Earnings yield	4.5%	1.8%	-2.2%	6.9%	25.4%	7.6%	5.0%	16.5%
Enterprise value	₹3.2T	₹2.8T	₹2.8T	₹2T	₹2.2T	₹1.8T	₹1.4T	₹1.6T
Net debt / EBITDA	2.35×	3.42×	3.59×	2.37×	0.92×	2.89×	6.36×	3.22×
Cash conversion cycle (days)	42	62	55	144	179	171	131	155