Is Tata Technolog. overvalued or undervalued?

Jun 09 2025 04:47 PM IST
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As of April 28, 2025, Tata Technologies is considered very expensive with a PE ratio of 45.44, significantly higher than its peers, and has underperformed the Sensex with a return of -27.22%, indicating it is overvalued in the current market.
As of 28 April 2025, Tata Technologies has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, with a PE ratio of 45.44, a Price to Book Value of 8.59, and an EV to EBITDA of 31.57. Compared to its peers, Tata Consultancy Services Ltd. has a more attractive PE ratio of 25.23, while Infosys Ltd. presents a fair valuation with a PE of 24.32.

The significant disparity in valuation ratios indicates that Tata Technologies is priced at a premium compared to its competitors in the software and consulting industry. Notably, the company's stock has underperformed the Sensex over the past year, with a return of -27.22% compared to the Sensex's 7.53%, reinforcing the notion that it is overvalued in the current market environment.
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