TATA MOTORS LIMITED Fair Value
TMCV · Capital Goods · Current price ₹414.65
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹74 | 34% ROE fading to 13% over ~10 yrs, on ₹35 book |
| Relative P/E | — | Needs ≥3 peers with P/E |
| Graham floor | ₹80 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | — | No analyst coverage |
Is TATA MOTORS LIMITED undervalued?
DocStoX estimates the fair value of TATA MOTORS LIMITED at ₹75 per share, versus the current market price of ₹415. That puts the stock about -81.8% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is medium.
How this fair value is calculated
This estimate blends 2 independent methods: Residual income (₹74), Graham floor (₹80). 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 ₹64 (bear) to ₹75 (base) to ₹87 (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 MOTORS 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.