TATA STEEL LIMITED Fair Value
TATASTEEL · Metals & Mining · Current price ₹183.16
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹80 | 12% ROE fading to 14% over ~3 yrs, on ₹82 book |
| Relative P/E | ₹186 | EPS × 21.5 peer-median P/E |
| Graham floor | ₹126 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹218 | Street consensus 12-month target price |
Is TATA STEEL LIMITED undervalued?
DocStoX estimates the fair value of TATA STEEL LIMITED at ₹134 per share, versus the current market price of ₹183. That puts the stock about -26.6% above our fair-value estimate, which we read as "Expensive". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 4 independent methods: Residual income (₹80), Relative P/E (₹186), Graham floor (₹126), Analyst target (₹218). 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 ₹80 (bear) to ₹134 (base) to ₹218 (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 STEEL LIMITED
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.