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Tata Motors Ltd
NSE:TATAMOTORS

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Tata Motors Ltd
NSE:TATAMOTORS
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Price: 359.2 INR -1.11% Market Closed
Market Cap: ₹1.3T

EV/EBIT

3.5
Current
69%
Cheaper
vs 3-y average of 11.2

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
3.5
=
Enterprise Value
₹955.4B
/
EBIT
₹273.4B

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
3.5
=
Enterprise Value
₹955.4B
/
EBIT
₹273.4B

Valuation Scenarios

Tata Motors Ltd is trading below its 3-year average

If EV/EBIT returns to its 3-Year Average (11.2), the stock would be worth ₹1 152.02 (221% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+566%
Average Upside
357%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 3.5 ₹359.2
0%
3-Year Average 11.2 ₹1 152.02
+221%
5-Year Average 11.3 ₹1 162.22
+224%
Industry Average 18.1 ₹1 865.2
+419%
Country Average 23.3 ₹2 391.9
+566%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
₹955.4B
/
Jul 2025
₹273.4B
=
3.5
Current
₹955.4B
/
Mar 2026
₹266.9B
=
3.6
Forward
₹955.4B
/
Mar 2027
₹323.2B
=
3
Forward
₹955.4B
/
Mar 2028
₹370.3B
=
2.6
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
Market Cap EV/EBIT P/E
IN
Tata Motors Ltd
NSE:TATAMOTORS
1.3T INR 3.5 5
US
Tesla Inc
NASDAQ:TSLA
1.4T USD 259.6 365.6
JP
Toyota Motor Corp
TSE:7203
40T JPY 11.2 10.8
CN
BYD Co Ltd
SZSE:002594
911.5B CNY 28.4 28.4
KR
Hyundai Motor Co
KRX:005380
134.7T KRW 21.9 14.3
DE
Mercedes Benz Group AG
MIL:MBG
75.3B EUR 6.1 4.9
DE
Daimler AG
XETRA:DAI
67.5B EUR 5.4 3.7
US
General Motors Co
NYSE:GM
70.6B USD 54.3 22.2
IT
Ferrari NV
MIL:RACE
59.3B EUR 27.8 36.2
DE
Bayerische Motoren Werke AG
XETRA:BMW
48.2B EUR 10.8 6.6
US
Ford Motor Co
NYSE:F
52.1B USD 4 504.3 -6.4
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
IN
Tata Motors Ltd
NSE:TATAMOTORS
Average EV/EBIT: 448.5
3.5
5%
0.7
US
Tesla Inc
NASDAQ:TSLA
259.6
39%
6.7
JP
Toyota Motor Corp
TSE:7203
11.2
N/A N/A
CN
BYD Co Ltd
SZSE:002594
28.4
17%
1.7
KR
Hyundai Motor Co
KRX:005380
21.9
13%
1.7
DE
Mercedes Benz Group AG
MIL:MBG
6.1
3%
2
DE
Daimler AG
XETRA:DAI
5.4
N/A N/A
US
General Motors Co
NYSE:GM
54.3
83%
0.7
IT
Ferrari NV
MIL:RACE
27.8
8%
3.5
DE
Bayerische Motoren Werke AG
XETRA:BMW
10.8
10%
1.1
US
Ford Motor Co
NYSE:F
4 504.3
630%
7.1
P/E Multiple
Earnings Growth PEG
IN
Tata Motors Ltd
NSE:TATAMOTORS
Average P/E: 49.8
5
-1%
N/A
US
Tesla Inc
NASDAQ:TSLA
365.6
49%
7.5
JP
Toyota Motor Corp
TSE:7203
10.8
0%
N/A
CN
BYD Co Ltd
SZSE:002594
28.4
27%
1.1
KR
Hyundai Motor Co
KRX:005380
14.3
14%
1
DE
Mercedes Benz Group AG
MIL:MBG
4.9
0%
N/A
DE
Daimler AG
XETRA:DAI
3.7
N/A N/A
US
General Motors Co
NYSE:GM
22.2
62%
0.4
IT
Ferrari NV
MIL:RACE
36.2
12%
3
DE
Bayerische Motoren Werke AG
XETRA:BMW
6.6
5%
1.3
US
Ford Motor Co
NYSE:F
Negative Multiple: -6.4 N/A N/A

Market Distribution

Lower than 98% of companies in India
Percentile
2st
Based on 2 572 companies
2st percentile
3.5
Low
0.4 — 15.7
Typical Range
15.7 — 34.7
High
34.7 —
Distribution Statistics
India
Min 0.4
30th Percentile 15.7
Median 23.3
70th Percentile 34.7
Max 48 145.1

Tata Motors Ltd
Glance View

In the bustling corridors of India's industrial tapestry, Tata Motors Ltd. stands as a significant cornerstone, tracing its legacy back to its inception in 1945. Emerging from the broader Tata Group, a behemoth that thrives across various sectors, Tata Motors initially ventured into the commercial vehicle market, etching its name as a pioneer in Indian automotive engineering. This journey is led by a strategic vision that combines innovation with adaptability—a vision that saw the company launch its first commercial truck in collaboration with Daimler-Benz in 1954. Over the years, the company expanded its portfolio, scaling the ranks to offer passenger vehicles, utility vehicles, and even defense vehicles, each crafted to cater to the dynamically evolving demands of both domestic and international markets. Today, Tata Motors generates revenue through the manufacturing and sale of a diverse range of vehicles, from compact cars to heavy trucks. Its business model is anchored in comprehensive operations that span design and engineering, backed by robust manufacturing capabilities. A key catalyst in its financial engine is the success of its subsidiary, Jaguar Land Rover, acquired in 2008, which added a premium sheen to its global footprint. By focusing on innovation, quality, and sustainability, Tata Motors has carved a niche, leveraging economies of scale and synergies across its diverse product lines. With extensive production facilities in India and abroad, coupled with an expansive distribution network, the company maintains a resilient presence in the automotive industry, constantly navigating challenges and opportunities in an ever-competitive landscape.

TATAMOTORS Intrinsic Value
956.36 INR
Undervaluation 62%
Intrinsic Value
Price ₹359.2
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