Is Tata Power Co. overvalued or undervalued?

Nov 16 2025 08:10 AM IST
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As of November 14, 2025, Tata Power Co. is considered undervalued with an attractive valuation grade, featuring a PE ratio of 30.72, an EV to EBITDA of 13.22, and a ROE of 10.71%, despite a recent 1-year stock return of -4.07% compared to the Sensex's 9.00%.
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, NTPC, another peer, has a PE of 13.41, while Adani Power is deemed very expensive with a PE of 24.67.

Despite recent underperformance against the Sensex, with a 1-year stock return of -4.07% compared to the Sensex's 9.00%, Tata Power's strong ratios suggest it is positioned well in the market. The attractive valuation indicates potential for growth, especially when compared to its peers in the power sector.
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