Tata Steel Valuation
| TTST Stock | USD 17.00 0.40 2.41% |
At this time, the company appears to be overvalued. Tata Steel Limited has a current Real Value of $14.11 per share. The regular price of the company is $17.0. Our model measures the value of Tata Steel Limited from inspecting the company fundamentals such as Shares Outstanding of 1.22 B, return on equity of 0.0727, and Operating Margin of 0.05 % as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Tata Steel's valuation include:
Price Book 1.9422 | Enterprise Value 31.5 B | Enterprise Value Ebitda 10.2876 | Price Sales 0.0087 | Forward PE 13.0208 |
Overvalued
Today
Please note that Tata Steel's price fluctuation is not too volatile at this time. Calculation of the real value of Tata Steel Limited is based on 3 months time horizon. Increasing Tata Steel's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Tata stock is determined by what a typical buyer is willing to pay for full or partial control of Tata Steel Limited. Since Tata Steel is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Tata Stock. However, Tata Steel's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 17.0 | Real 14.11 | Hype 16.99 | Naive 16.47 |
The intrinsic value of Tata Steel's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Tata Steel's stock price.
Estimating the potential upside or downside of Tata Steel Limited helps investors to forecast how Tata stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Tata Steel more accurately as focusing exclusively on Tata Steel's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Tata Steel's intrinsic value based on its ongoing forecasts of Tata Steel's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Tata Steel's closest peers.
Tata Steel Cash |
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Tata Valuation Trend
Knowing Tata Steel's actual value is paramount for traders when making sound investment determinations. Using both Tata Steel's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Tata Steel Total Value Analysis
Tata Steel Limited is at this time expected to have takeover price of 31.51 B with market capitalization of 20.93 B, debt of 299.97 B, and cash on hands of . Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Tata Steel fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
31.51 B | 20.93 B | 299.97 B |
Tata Steel Investor Information
The company has price-to-book ratio of 1.94. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Tata Steel Limited last dividend was issued on the 21st of June 2023. Based on the analysis of Tata Steel's profitability, liquidity, and operating efficiency, Tata Steel Limited is not in a good financial situation at the present time. It has a very high likelihood of going through financial trouble in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.0513 | 0.054 |
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| Total Cash From Operating Activities | 289.5 B | 203 B |
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| Operating Income | 99.4 B | 104.7 B |
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Tata Steel Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Tata Steel has an asset utilization ratio of 83.13 percent. This suggests that the Company is making $0.83 for each dollar of assets. An increasing asset utilization means that Tata Steel Limited is more efficient with each dollar of assets it utilizes for everyday operations.Tata Steel Ownership Allocation
Tata Steel Limited shows a total of 1.22 Billion outstanding shares. About 99.99 % of Tata Steel outstanding shares are held by general public with 0.007 % by institutional holders. Please note that no matter how many assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.Tata Steel Profitability Analysis
The company reported the revenue of 2.27 T. Net Loss for the year was (44.37 B) with profit before overhead, payroll, taxes, and interest of 1.24 T.About Tata Steel Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Tata Steel Limited. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Tata Steel Limited based exclusively on its fundamental and basic technical indicators. By analyzing Tata Steel's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Tata Steel's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Tata Steel. We calculate exposure to Tata Steel's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Tata Steel's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 898 B | 1.1 T | |
| Operating Profit Margin | 0.05 | 0.05 | |
| Net Loss | (0.02) | (0.02) | |
| Gross Profit Margin | 0.40 | 0.40 |
Tata Steel Quarterly Retained Earnings |
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Other Information on Investing in Tata Stock
Tata Steel financial ratios help investors to determine whether Tata Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Tata with respect to the benefits of owning Tata Steel security.