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 appears to be undervalued based on its current financial metrics. 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 its peers, Tata Power's PE ratio is significantly higher than NTPC's 13.41, which is also rated as attractive, while other competitors like Adani Power and Power Grid Corporation are considered very expensive with PE ratios of 24.67 and 16.60, respectively. Despite recent underperformance relative to the Sensex, with a year-to-date return of -1.07% compared to the Sensex's 8.22%, Tata Power's long-term performance over 5 years shows a remarkable return of 593.21%, indicating strong growth potential.