Is Tata Motors overvalued or undervalued?

As of 13 October 2025, Tata Motors has moved from an attractive to a very attractive valuation grade. The company is currently considered undervalued, with a PE ratio of 11.25, an EV to EBITDA of 4.78, and a ROCE of 27.93%. In comparison to its peers, Maruti Suzuki has a significantly higher PE ratio of 35.3, while Mahindra & Mahindra stands at 31.32, indicating that Tata Motors is trading at a substantial discount relative to these competitors.
Despite recent stock performance showing a decline of 10.77% year-to-date compared to a 5.36% gain in the Sensex, the underlying financial metrics suggest a strong potential for recovery and growth. With a PEG ratio of 0.00 and an EV to Sales ratio of just 0.56, Tata Motors presents a compelling investment opportunity in the current market landscape.