TATA COMMUNICATIONS LTD Fair Value
TATACOMM · Telecommunication · Current price ₹1,732
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹153 | 33% ROE fading to 13% over ~3 yrs, on ₹121 book |
| Relative P/E | ₹1,157 | EPS × 32.9 peer-median P/E |
| Graham floor | ₹309 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹2,103 | Street consensus 12-month target price |
Is TATA COMMUNICATIONS LTD undervalued?
DocStoX estimates the fair value of TATA COMMUNICATIONS LTD at ₹755 per share, versus the current market price of ₹1,732. That puts the stock about -56.4% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 4 independent methods: Residual income (₹153), Relative P/E (₹1,157), Graham floor (₹309), Analyst target (₹2,103). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.
Bear, base and bull scenarios
Our scenarios span ₹153 (bear) to ₹755 (base) to ₹2,103 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
More on TATA COMMUNICATIONS LTD
DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.