Tata Motors Limited (TMCV.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

-99.1%

₹3.77

vs ₹403.60 price

Levered DCF

₹41.20

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

4.06

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

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

Metric	FY2025	FY2024	FY2023
P/E	47.97×	0×	3.79×
P/B	11.41×	0×	1.43×
P/S	1.73×	0×	0.28×
EV / EBITDA	19.14×	0.6×	2.98×
Gross margin	22.2%	37.3%	36.3%
Operating margin	9.5%	0.9%	1.9%
Net margin	3.6%	5.3%	7.4%
Current ratio	0.76×	0.96×	0.97×
Debt / equity	0.44×	0.62×	1.26×
Interest coverage	9.14×	0.8×	1.1×
Dividend yield	0.0%	0.0%	0.6%
Payout ratio	0.0%	10.0%	2.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023
Return on equity	23.8%	19.8%	37.7%
Return on invested capital	20.5%	1.2%	3.6%
Return on assets	5.8%	6.1%	8.6%
Free cash flow yield	9.2%	0.0%	30.1%
Earnings yield	2.1%	0.0%	26.4%
Enterprise value	₹1.4T	₹371.9B	₹1.9T
Net debt / EBITDA	-0.29×	0.6×	1.06×
Cash conversion cycle (days)	-45	-45	-23