TATA COMMUNICATIONS LTD Valuation
TATACOMM · Telecommunication · Current price ₹1,732
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.
Valuation multiples
TATA COMMUNICATIONS LTD trades at a P/E of 49.3x and a P/B of 16.0x, with a dividend yield of 1.0%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.
Understand the ratios
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.