Is Tata Comm overvalued or undervalued?

As of 10 October 2025, Tata Communications' valuation grade has moved from attractive to fair, indicating a shift in market perception. The company is currently fairly valued, with a PE ratio of 50.32, a Price to Book Value of 17.65, and an EV to EBITDA of 14.04. Compared to peers, Bharti Airtel is considered expensive with a PE ratio of 38.3, while Vodafone Idea is categorized as risky and has a PE ratio of 17.3.
Despite the recent downgrade in valuation, Tata Communications has shown strong returns, particularly over the past three years with a return of 53.40%, outpacing the Sensex's 42.26%. This performance, alongside a robust ROE of 36.55% and a ROCE of 14.25%, suggests that while the stock is currently fairly valued, it has the potential for growth in a competitive telecom market.