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  2. SECTOR : METALS & MINING
  3. INDUSTRY : IRON & STEEL/INTERM.PRODUCTS
  4. TATA STEEL LTD.
Tata Steel Ltd. NSE: TATASTEEL | BSE: 500470
Strong Performer, Under Radar
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154.48 0.85 (0.55%)
25.98% Gain from 52W Low
17.4M
NSE+BSE Volume

NSE 29 Aug, 2025 3:31 PM (IST)

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Tata Steel invests Rs 3,104 crore in its Singapore-based subsidiary T Steel Holdings See details

Analyze undervaluation/ overvaluation of Tata Steel Ltd. with current and 1 Year Forward PE

INSIGHT
Tata Steel Ltd. is overvalued at current PE, but undervalued on future earnings estimates
Right Now : Current PE vs 5 year Average PE
Overvalued
Fair price

Based on 5Yr Average PE

70.8
Upside

Current PE versus 5Yr Average PE

-54.17 %
1 Year Forward : 5 Yr Average PE & Projected 1Yr Forward EPS*
Undervalued
Fair price

Based on 1Yr Forward EPS

194.5
Upside

5 Yr Average PE & 1Yr Forward EPS

25.92 %
Info: The Tata Steel Ltd.'s current PE is 42.49 ,while its 5 year PE average is 19.5. Its forward PE based on analyst estimates is 15.5
Note: The forward PE ratio (or forward price-to-earnings ratio) is calculated by dividing the current share price of a company by the estimated(1Yr) future (“forward”) earnings per share (EPS) of that company.
generated report

Analyze undervaluation/ overvaluation of Tata Steel Ltd. with historical PE and PBV ratios

from 30 Aug, 2023 to 29 Aug, 2025

Standalone PE

Buy Zone

35.1% into PE buy sell zone

% time spent below current PE
0 20 40 60 80 100
Strong upside potential
Gains already realized

Out of 496 days, Tata Steel Ltd. traded 174 (35.1%) days below the current PE of on Standalone basis.

Consolidated PE

Strong Buy Zone

0.8% into PE buy sell zone

% time spent below current PE
0 20 40 60 80 100
Strong upside potential
Gains already realized

Out of 243 days, Tata Steel Ltd. traded 2 (0.8%) days below the current PE of on Consolidated basis.

Note: This is a reverse percentile score. Values close to 100% are bad while values close to 0% are good. Days when PE is negative are not considered in the analysis
0.8%

Strong Buy Zone

% Days traded below current PE

42.5
 

Current PE

65.4
 

Average PE

61.0
 

Median PE

194.5
 

Forward 1Y Price

15.5
 

Forward PE

10.0
 

Forward EPS

PE range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
42-44
Current PE is 42.5
15 6.2% 15 6.2%
44-55
 11 4.5% 26 10.7%
55-58
 37 15.2% 63 25.9%
58-59
 22 9.1% 85 35.0%
59-61
 36 14.8% 121 49.8%
61-64
 42 17.3% 163 67.1%
64-71
 32 13.2% 195 80.2%
71-95
 24 9.9% 219 90.1%
95-99
 24 9.9% 243 100.0%
Total 243 243
35.1%

Buy Zone

% Days traded below current PE

13.6
 

Current PE

32.6
 

Average PE

38.1
 

Median PE

194.5
 

Forward 1Y Price

15.5
 

Forward PE

10.0
 

Forward EPS

PE range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
9-11
 31 6.2% 31 6.2%
11-12
 106 21.4% 137 27.6%
12-14
Current PE is 13.6
54 10.9% 191 38.5%
14-38
Forward PE is 15.46
58 11.7% 249 50.2%
38-47
 87 17.5% 336 67.7%
47-55
 80 16.1% 416 83.9%
55-60
 31 6.2% 447 90.1%
60-70
 49 9.9% 496 100.0%
Total 496 496

FAQ

  • What is the PE ratio?

    In its simplest definition, the price-to-earnings ratio (PE ratio) represents the price an investor pays per rupee of a company's earnings.
    For example, if a company has a PE ratio of 25, investors are willing to pay INR 25 for each rupee of the company's current earnings. This indicates that investors value the stock at 25 times its current earnings, with an expectation of future earnings growth.
    The PE ratio fluctuates based on investor sentiment towards a company. Positive sentiment drives the stock price higher, resulting in a higher PE ratio (investors pay more for each rupee of earnings). Conversely, negative sentiment lowers the PE ratio (investors pay less for each rupee of earnings).

  • What is the PE buy/sell zone?

    The PE buy/sell zone is calculated based on how many days a stock has traded at its current PE level.
    To do this, we compare the current PE to the stock’s historical PE performance, to find out how often (for how many days in the past) the stock has traded at its current PE value.
    If the stock has usually traded above its current PE level (it’s at a higher PE for the majority of trading days), then the stock is cheaper than usual and in the PE buy zone.
    If the stock has usually traded below its current PE level (it’s at a lower PE for the majority of trading days), then the stock is more expensive than usual and in the PE sell zone.

  • How is the PE buy sell zone useful?

    The PE buy sell zone tells you if a stock’s current PE level is unusually high or low, and if a stock doesn’t typically trade at that level. It helps investors identify stocks that are undervalued or overvalued in terms of their typical PE trading behavior.
    Investors should keep in mind that the buy zone/sell zone is not a foolproof buy or sell signal. For example, the PE of a stock may have fallen substantially due to adverse events or negative news. Or the PE may have risen sharply after the company has won new orders, made an acquisition, announced a buyback, or some other positive event. PE Buy/Sell Zone signals should be looked at in conjunction with other information.

  • Why are the number of days different for Standalone and Consolidated data?

    This can be because of any of the 2 following reasons:
    1. Days when PE is negative are not considered in the analysis. So if only 1 of the Standalone or Consolidated PE is negative and the other is not, then the days will be different
    2. Companies have reported Consolidated data for limited period.
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