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Power · NSE: TATAPOWER

Tata Power Company Limited - Fair Value & Intrinsic Value Estimate

Intrynsic's multi-model valuation estimates Tata Power Company Limited's fair value at ₹297 per share (range ₹297–₹375) against a market price of ₹374 - a gap of -20.6% (updated 24 July 2026). This is an estimated fair value based on stated assumptions, not investment advice.

Low ₹297Above fair-value est.High ₹375

Market price

₹374

close of 24 Jul 2026

Est. fair value

₹297

₹297–₹375

Gap

-20.6%

price vs estimate

Trading ~21% above our estimated fair-value range. Assumptions and per-model workings are below.

What Tata Power Company Limited does

Tata Power generates and distributes electricity and is expanding fast into solar rooftops, EV charging and renewables. It serves major cities including Mumbai and Delhi.

Power · Power Generation

Health signals

GrowthRevenue +4.2%/yr (3y)Okay

Over the last 3 years, revenue grew 4.2%/yr and profit grew 10.3%/yr.

ProfitabilityROE 13.0%Good

Every ₹100 of shareholder money earned ₹13.0 in profit last year, vs a sector median of 10.1%.

DebtD/E 1.93Weak

Debt is 1.93x shareholder equity and 3.7x yearly operating earnings — a heavy load.

Valuation-21% vs estimateWeak

The market price is above our estimated fair-value range (based on stated assumptions).

Quality₹0 cash per ₹100 profitOkay

About ₹0 of every ₹100 of reported profit turned into free cash (median, last 5 years); operating cash flow was positive in 5 of 5 years.

The valuation, explained- models, weights & assumptions ▾

Intrynsic values Tata Power Company Limited with 2 independent models and blends them into one estimated fair-value range. Every number below is an estimate based on the stated assumptions - change the assumptions and the estimate changes.

ModelEstimated valuevs priceWeight
EV/EBITDAIndustry Comparison Method₹297-21%-
EV/EBITAfter-Depreciation Comparison Method₹375+0%-

Key assumptions

Risk-free rate
7.0%
Equity risk premium
6.5%
Beta
1.132
Cost of equity
14.4%
Terminal growth
5.0%
Tax rate
25%

Reverse DCF: today's market price implies the company must grow free cash flow about 60.0% a year for the next decade - versus 9.9% historical revenue growth.

Key financialsFY17–FY26

Full statements & analysis →
Revenue₹62,429 Cr
Net profit₹5,118 Cr
EPS₹11.73
Free cash flow₹-8,136 Cr
ROE (latest)13.0%
Revenue growth (CAGR)9.5%
Profit growth (CAGR)18.6%

Peers

Sector overview →
Adani Power Limited₹4,12,225 CrP/E 32.1ROE 20.0%
Reliance Infrastructure Limited₹2,454 CrP/E 0.8ROE 27.1%
CESC Limited₹21,479 CrP/E 14.0ROE 12.9%
Torrent Power Limited₹72,588 CrP/E 30.0ROE 12.9%
DPSC Limited₹698 CrP/E 55.2ROE 1.5%
Ask AI about Tata Power Company LimitedChat with Intrynsic's research agent about results, risks and filings.Sign up free →Track it in your watchlistFair-value alerts, result-day briefs and portfolio analytics.Sign up free →See the full model workingsEvery assumption, per-model trace, reverse DCF and peer lens.Sign up free →

Frequently asked questions

What is Tata Power Company Limited's intrinsic value?

Intrynsic's multi-model valuation estimates Tata Power Company Limited's fair value at ₹297 per share (range ₹297–₹375), last updated 24 July 2026. This is an estimate based on stated assumptions, not investment advice.

Is Tata Power Company Limited overvalued or undervalued?

Tata Power Company Limited trades at ₹374 against Intrynsic's estimated fair value of ₹297 - the market price is 21% above the estimate, i.e. above our estimated fair-value range. Different assumptions produce different estimates; see the model breakdown above.

What is Tata Power Company Limited's P/E ratio?

Tata Power Company Limited trades at about 31.9 times its latest annual earnings per share.

What does Tata Power Company Limited do?

Tata Power generates and distributes electricity and is expanding fast into solar rooftops, EV charging and renewables. It serves major cities including Mumbai and Delhi.

How is Tata Power Company Limited's fair value calculated?

Intrynsic runs 2 valuation models for Tata Power Company Limited (EV/EBITDA, EV/EBIT) and blends them into one estimated fair-value range. Every assumption - growth, discount rate, terminal value - is shown openly on this page.

Disclaimer: Intrynsic provides educational and informational analysis only. Fair-value figures are estimates based on stated assumptions - they are not investment advice, research recommendations, or an offer to transact in any security. Intrynsic is not a SEBI-registered investment adviser or research analyst. Markets carry risk; please do your own research or consult a registered adviser before making investment decisions. Prices shown may be delayed end-of-day values. Terms · Privacy

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