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Metals & Mining · NSE: TATASTEEL

Tata Steel Limited - Fair Value & Intrinsic Value Estimate

Intrynsic's multi-model valuation estimates Tata Steel Limited's fair value at ₹161 per share (range ₹151–₹161) against a market price of ₹183 - a gap of -11.8% (updated 24 July 2026). This is an estimated fair value based on stated assumptions, not investment advice.

Low ₹151Near fair-value est.High ₹161

Market price

₹183

close of 24 Jul 2026

Est. fair value

₹161

₹151–₹161

Gap

-11.8%

price vs estimate

Trading close to our estimated fair value (-12% gap). Assumptions and per-model workings are below.

What Tata Steel Limited does

Tata Steel is one of the world's larger steelmakers, with low-cost Indian plants and a restructuring European business. Profits track global steel prices and raw material costs.

Metals & Mining · Diversified Metals

Health signals

GrowthRevenue -1.6%/yr (3y)Okay

Over the last 3 years, revenue grew -1.6%/yr and profit grew 10.5%/yr.

ProfitabilityROE 10.7%Okay

Every ₹100 of shareholder money earned ₹10.7 in profit last year, vs a sector median of 10.1%.

DebtD/E 0.90Okay

Debt is 0.90x equity — manageable, worth watching.

Valuation-12% vs estimateOkay

The market price is close to our estimated fair value (based on stated assumptions).

Quality₹93 cash per ₹100 profitGood

About ₹93 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 Steel Limited with 4 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₹161-12%-
EV/EBITAfter-Depreciation Comparison Method₹151-17%-
P/E MultipleEarnings Multiple Method₹149-18%-
DDMDividend Discount Method₹50-73%-

Key assumptions

Risk-free rate
7.0%
Equity risk premium
6.5%
Beta
0.977
Cost of equity
13.4%
Terminal growth
5.0%
Tax rate
25%

Reverse DCF: today's market price implies the company must grow free cash flow about 15.3% a year for the next decade - versus -1.2% historical revenue growth.

Key financialsFY17–FY26

Full statements & analysis →
Revenue₹2,32,140 Cr
Net profit₹10,886 Cr
EPS₹8.65
Free cash flow₹20,667 Cr
ROE (latest)10.7%
Revenue growth (CAGR)8.4%
Profit growth (CAGR)-6.7%

Peers

Sarda Energy & Minerals Limited₹18,053 CrP/E 16.3ROE 15.1%
JSW Steel Limited₹3,04,411 CrP/E 13.6ROE 25.5%
Jindal Stainless Limited₹59,701 CrP/E 18.7ROE 16.1%
Manaksia Steels Limited₹459 CrP/E 11.5ROE 12.3%
Ankit Metal & Power Limited₹22 Cr
Prakash Industries Limited₹2,246 CrP/E 6.7ROE 9.3%
Ask AI about Tata Steel 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 Steel Limited's intrinsic value?

Intrynsic's multi-model valuation estimates Tata Steel Limited's fair value at ₹161 per share (range ₹151–₹161), last updated 24 July 2026. This is an estimate based on stated assumptions, not investment advice.

Is Tata Steel Limited overvalued or undervalued?

Tata Steel Limited trades at ₹183 against Intrynsic's estimated fair value of ₹161 - the market price is 12% above the estimate, i.e. above our estimated fair-value range. Different assumptions produce different estimates; see the model breakdown above.

What is Tata Steel Limited's P/E ratio?

Tata Steel Limited trades at about 21.1 times its latest annual earnings per share.

What does Tata Steel Limited do?

Tata Steel is one of the world's larger steelmakers, with low-cost Indian plants and a restructuring European business. Profits track global steel prices and raw material costs.

How is Tata Steel Limited's fair value calculated?

Intrynsic runs 4 valuation models for Tata Steel Limited (EV/EBITDA, EV/EBIT, P/E Multiple, DDM) 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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