Is Tata Comm overvalued or undervalued?

As of 15 October 2025, Tata Communications has moved from a fair to an attractive valuation grade, indicating a positive shift in its perceived value. The company is currently considered undervalued, supported by a PE ratio of 52.59, an EV to EBITDA of 14.57, and a ROE of 36.55%. In comparison to its peers, Bharti Airtel, which is categorized as expensive, has a PE ratio of 38.93, while Bharti Hexacom is deemed very expensive with a PE ratio of 60.48.
The strong financial metrics of Tata Communications, particularly its robust ROCE of 14.25% and a PEG ratio of 29.49, suggest that the company is well-positioned in the telecom services industry. Additionally, Tata Communications has outperformed the Sensex in various time frames, including a remarkable 67.99% return over the past three years, further reinforcing its undervalued status.