Is Tata Comm overvalued or undervalued?

As of 7 November 2025, Tata Communications' valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 50.66, an EV to EBITDA of 26.04, and a ROE of 3.66%.
In comparison to its peers, Tata Communications' PE ratio is significantly higher than Bharti Airtel's 36.25, while Bharti Hexacom is considered very expensive at a PE of 54.72. This suggests that Tata Communications is positioned in the middle of its peer group, though still on the higher end. Additionally, the company's recent stock performance has shown a YTD return of 8.88%, outperforming the Sensex's 6.50%, which may reinforce its fair valuation in the current market context.