Is Tata Power Co. overvalued or undervalued?

As of 13 November 2025, Tata Power Co. has moved from an attractive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 30.78, an EV to EBITDA ratio of 13.23, and a PEG ratio of 5.04. In comparison to its peers, NTPC is rated attractive with a PE of 13.36 and an EV to EBITDA of 10.33, while Torrent Power is also fair with a PE of 21.77 and an EV to EBITDA of 14.07.
Despite its fair valuation, Tata Power's recent stock performance has lagged behind the Sensex, with a year-to-date return of -0.88% compared to the Sensex's 8.11%. This underperformance, coupled with its relatively high valuation ratios compared to peers, suggests that while the company is not overvalued, it may not present a compelling investment opportunity at this time.