Understanding Tata Motors Enterprise Value and Financial Performance

Tata Motors' enterprise value is estimated to be around ₹1.5 trillion, based on its market capitalization and debt.

The company's revenue has grown significantly over the years, from ₹1.2 trillion in 2018 to ₹1.7 trillion in 2022. This growth is a testament to Tata Motors' expanding presence in the Indian market.

Tata Motors has a diverse portfolio of brands, including Jaguar, Land Rover, and Tata, which contribute to its revenue growth.

Company Valuation is a crucial aspect of understanding Tata Motors' Enterprise Value. Key Valuation Metric is used to analyze the company's relative value, and for profitable companies like Tata Motors, the Price-To-Earnings Ratio is the preferred metric.

Tata Motors' Price to Earnings ratio is a staggering 7.9x, calculated by dividing its market cap of ₹2.51 trillion by its current earnings of ₹317.69 billion.

The company's Enterprise Value to Revenue ratio is 0.7x, indicating that its enterprise value is 70% of its revenue.

Here are the key valuation metrics and ratios for Tata Motors:

Tata Motors' Price to Earnings Growth Ratio is not a positive number, indicating that the company's earnings growth is not supported by its current valuation.

Tata Motors has a strong track record of profitability, with a profit margin of 7.61% and an operating margin of 9.73%.

This indicates that the company is able to retain a significant portion of its revenue after expenses. The revenue per share is a staggering Rs 1,157.91, which highlights the company's earning capacity.

One notable aspect of Tata Motors' financial performance is its revenue growth. Despite the global economic slowdown, the company has consistently increased its sales year-over-year, with a quarterly revenue growth of 5.70%.

Here's a breakdown of Tata Motors' revenue and earnings:

Tata Motors has also shown impressive earnings growth, with a quarterly earnings growth of 73.80%. This indicates a strong recovery and earning potential for the company.

Tata Motors has a solid profitability track record, with a profit margin of 7.61%. This means that for every Rs 100 in revenue, the company retains Rs 7.61 in profit after all expenses.

The company's operating margin is even higher at 9.73%, indicating strong operational efficiency in generating profit from its core operations.

One of the key drivers of Tata Motors' profitability is its significant revenue, which stands at Rs 4.44 trillion (ttm). This level of revenue is a testament to the company's scale and market leadership in India and abroad.

Breaking down the revenue, we see that Tata Motors generates Rs 1,157.91 in revenue per share (ttm), highlighting its capacity to earn per share.

Here's a snapshot of Tata Motors' profitability metrics:

The company's ability to generate strong cash flows is evident in its EBITDA of Rs 511.05 billion, which supports its earnings before interest, tax and depreciation. This, in turn, has led to a net income of Rs 337.62 billion (ttm), illustrating the company's net profits.

Tata Motors' quarterly earnings growth has been impressive, with a YoY growth of 73.80%, indicating a strong recovery and earning potential.

Let's take a closer look at the 1-year return of some notable stocks. Tata Motors had a remarkable year, with a return of +33.77%. This is significantly higher than the S&P BSE Sensex, which returned +23.82%.

For context, the S&P BSE Sensex is a widely followed benchmark in India. Tata Motors' impressive return is a testament to the company's strong performance.

Here's a comparison of the 1-year returns of Tata Motors and the S&P BSE Sensex:

Keep in mind that past performance is not always indicative of future results. However, it's worth noting that Tata Motors' return is not an isolated incident. The company's 5-year return is also impressive, with a return of +550.31% compared to the S&P BSE Sensex' return of +106.06%.

Tata Motors has outperformed the Sensex returns by more than 550% in a five year period, indicating the company's continued growth orientation.

This impressive return highlights the substantial gains achieved by Tata Motors when compared with S&P BSE Sensex over various time periods.

The company's performance over the past five years shows its ability to consistently deliver strong results, making it a viable option for both short term and long term investors.

Its growth orientation is a key factor in its success, allowing it to stay ahead of the market and deliver substantial gains for its investors.

Tata Motors stands out in the Asian Auto industry with a lower Price-To-Earnings Ratio of 7.9x compared to the industry average of 19.3x.

The company's market capitalization of Rs 3.652 trillion is a significant indicator of its wide coverage in commercial and passenger vehicles.

In terms of stock performance, Tata Motors saw a 1.73% decline, while Bajaj Auto and Ola Electric experienced gains of 0.48% and 1.16% respectively, showing resilience to market fluctuations.

Let's take a closer look at how Tata Motors has performed compared to the S&P BSE Sensex, the benchmark index it's measured against.

Tata Motors has trailed behind the S&P BSE Sensex in terms of total returns, as of 22nd October 2024.

This is evident in the data, where Tata Motors' trailing total returns have not kept pace with the market index.

The key difference lies in their performance over time, with Tata Motors' returns lagging behind those of the S&P BSE Sensex.

As of 22nd October 2024, the S&P BSE Sensex has outperformed Tata Motors in terms of total returns.

Tata Motors is assessed together with prominent competitors such as Bajaj Auto, Mahindra & Mahindra (M&M), Hero MotoCorp and Ola Electric. Tata Motors leads the sector with a market capitalization of Rs 2.5 trillion, indicating its wide coverage in commercial and passenger vehicles.

The company's stock fell by 1.73% on a particular date, suggesting short-term fluctuations expected. Both Bajaj Auto and Ola Electric increased in price, registering a gain of 0.48% and 1.16% respectively, indicating resilience to inflation.

Here's a comparison of Tata Motors with its competitors in terms of market capitalization:

Mahindra & Mahindra has a higher market capitalization of Rs 3.1 trillion, while Bajaj Auto has a market capitalization of Rs 2.4 trillion. Hero MotoCorp and Ola Electric's market capitalization are not mentioned in the article.

Tata Motors' market presence is significant, with a market cap of Rs 3.72 trillion, which signifies the firm's growth and global space.

The company's Enterprise Value (EV) is Rs 4.26 trillion, which includes debt and forms the total company value. This suggests that the company's debt is substantial.

Tata Motors' Trailing P/E Ratio is 10.26, which is relatively lower, indicating poor earnings in the past. This could potentially provide value opportunities for investors.

The company's Price/Sales (P/S) ratio is 0.68, which means less than one rupee is being paid for every unit worth a rupee made. This suggests that the stock is undervalued and has potential for appreciation.

The Price/Book (P/B) ratio is 4.46, which indicates that the book value easily exceeds the stock price. This could be a sign of optimism from investors, but also suggests that the stock is expensive compared to its assets.

Here's a summary of Tata Motors' valuation metrics:

Tata Motors' Enterprise Value/Revenue ratio is close to 1, indicating that the company is generating efficient revenue relative to its total value. The Enterprise Value/EBITDA ratio is 6.21, which suggests that the company's earnings before interests, taxes, depreciation, and amortization are providing good returns while taking debt into account.

Tata Motors is currently trading at Rs 882.25, reflecting a 2.33% decrease.

The company's market capitalization is a massive Rs 3.628 trillion, demonstrating its significant influence in the automotive industry.

Tata Motors has a PE ratio of 10.03 and an EPS of Rs 88.01, showcasing its financial strength.

The next earnings date is set for November 8th, 2024.

The stock has a beta of 1.68, indicating higher volatility than the general market.

Tata Motors has a forward dividend of Rs 3.00 with a yield of 0.33%, and the recent dividend is ex-dividend as of June 11th, 2024.

Tata Motors has a rich history dating back to 1945, when it was founded as a locomotive manufacturer.

The company's diversification into commercial vehicles began in 1954, with the introduction of the first Tata truck, the 401A.

Tata Motors' expansion into the passenger vehicle market started in 1991 with the launch of the Tata Indica, which became the best-selling passenger car in India in 1998.

The Indica was a game-changer for Tata Motors, marking a significant shift towards passenger vehicles and propelling the company's growth.

The 3-Year Return is a crucial metric for investors. It shows how well a stock has performed over a longer period compared to the market.

Tata Motors has consistently outperformed the S&P BSE Sensex in the past three years. We can see this in the impressive returns.

Here's a comparison of the 3-year returns:

This significant difference in returns indicates that Tata Motors has been a strong performer over the past three years.

Historical PBR trend is a valuable tool for investors, and let's take a look at the historical trend of Tata Motors Limited. The company's stock, TATAMOTORS, is a key player in the stock market and equities.

The valuation of Tata Motors Limited is an essential aspect of its historical PBR trend. The stock market performance of TATAMOTORS is closely tied to the company's valuation.

Here's a brief overview of the historical PBR trend of Tata Motors Limited:

Tata Motors' enterprise value is influenced by its debt and cash levels, which impact its financial health and ability to invest in growth opportunities.

The company's debt-to-equity ratio is around 0.5, indicating a moderate level of debt.

Tata Motors' cash and cash equivalents stood at ₹43,419 crore as of March 2022.

This significant cash reserve allows the company to invest in new projects, pay off debt, or return value to shareholders.

Tata Motors' enterprise value is also affected by its market capitalization, which is around ₹2,50,000 crore as of March 2022.

The company's market capitalization is a key indicator of its stock's value and can influence investor sentiment.