Is Tata Power Co. overvalued or undervalued?

As of 17 November 2025, Tata Power Co. has moved from an attractive to a fair valuation grade. The company appears to be fairly valued at this time. Key ratios include a PE ratio of 31.05, an EV to EBITDA of 13.31, and a ROE of 10.71%.
In comparison to its peers, Tata Power Co. has a higher PE ratio than NTPC, which is rated attractive with a PE of 13.47, while other competitors like Adani Power and Power Grid Corporation are considered very expensive with PE ratios of 24.58 and 16.73, respectively. Despite recent stock performance lagging behind the Sensex, particularly in the last year with a return of -3.04% compared to the Sensex's 9.50%, the long-term performance shows a significant outperformance over three and five years.