Is Tata Power Co. overvalued or undervalued?

As of 14 November 2025, Tata Power Co. has moved from a fair to an attractive valuation grade. The company is currently considered undervalued. Key ratios include a PE Ratio of 30.72, an EV to EBITDA of 13.22, and a ROE of 10.71%.
In comparison to peers, NTPC has a PE Ratio of 13.41 and an EV to EBITDA of 10.35, while Adani Power is deemed very expensive with a PE of 24.67 and an EV to EBITDA of 16.20. Despite recent stock performance lagging behind the Sensex, particularly over the past year with a return of -4.07% compared to the Sensex's 9.00%, the long-term outlook remains strong, evidenced by a 5-year return of 593.21%.