Is Tata Power Co. overvalued or undervalued?

As of 18 November 2025, Tata Power Co. has moved from a fair to an attractive valuation grade. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE Ratio of 30.57, an EV to EBITDA of 13.17, and a ROE of 10.71%.
When compared to peers, Tata Power's PE Ratio is significantly higher than NTPC's 13.41, while its EV to EBITDA is more favorable than Adani Power's 15.80. Despite recent stock performance lagging behind the Sensex, particularly over the past year with a return of -4.56% compared to the Sensex's 9.48%, the long-term outlook remains strong, evidenced by a 536.93% return over the last five years. Overall, Tata Power Co. appears to be a compelling investment opportunity at its current price of 386.30.