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TATA COMMUNICATIONS
PE (Price/Earnings) Ratio

The Current P/E Ratio of TATA COMMUNICATIONS is 41.81.

Share Price ₹1,633.5Jan 31,2025
Market Cap ₹46,553.3 Cr
Earnings-TTM₹1,113.4 CrTTM-Consolidated Results
Price/Earnings41.81xCalculated as Market Cap/Earnings
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Definition & Calculation of PE (Price/Earnings) ratio of TATA COMMUNICATIONS

Price-to-Earnings ratio, P/E Multiple, or P/E Ratio is an important valuation multiple that is defined as:

P/E = Market Capitalization / Net Income

or, using per-share numbers:

P/E = Stock Price / Earnings Per Share (EPS)

Applying the above formula, P/E ratio of TATA COMMUNICATIONS is calculated as :

Current Market Cap [ ₹46,553.3 Cr] as on Jan 31,2025

(/) Earnings [ ₹1,113.4 Cr] based on TTM-Consolidated Results

(=) P/E Ratio [ 41.81x ]

P/E Ratio indicates the multiple of earnings investors are willing to pay to own one share of the company.

Thus, for TATA COMMUNICATIONS , the investors are currently willing to pay 41.81 times earnings to own 1 share of the company.

PE Multiples are the most widely used valuation multiple in practice.

Since P/E ratio uses Net Income in the calculation, P/E multiples are not always reliable for valuing companies with negative earnings.

In such cases, you may consider using Price to Book ratio or Price to Sales ratio of TATA COMMUNICATIONS !

P/E ratios, also, would not adjust for differences in the capital structure between companies.

The chart below summarizes the trend in P/E Ratio of TATA COMMUNICATIONS over the last five years.

Historical PE (Price/Earnings) ratio chart of TATA COMMUNICATIONS


PE Ratio Performance Analysis for TATA COMMUNICATIONS

- TATA COMMUNICATIONS 's latest p/e ratio is 41.81x.

- TATA COMMUNICATIONS 's p/e ratio for fiscal years ending Mar2024 to Mar2020 averaged 25.35x.

- TATA COMMUNICATIONS 's operated at median p/e ratio of 23.62x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, TATA COMMUNICATIONS 's p/e ratio peaked in Mar2024 at 59.19x.

- TATA COMMUNICATIONS 's p/e ratio hit its five-year low in Mar2020 of 0x.


How does TATA COMMUNICATIONS 's P/E Ratio benchmark against top 10 peers in Telecommunication - Service Provider Industry?

Peer Comparison (Telecommunication - Service Provider Industry)Earnings-TTM (Cr)PE RatioMarket Cap
TATA COMMUNICATIONS 1,113.3941.8146,553.3
BHARTI AIRTEL LTD10,296.4096.24990,926.0
INDUS TOWERS LTD10,005.709.1591,531.1
VODAFONE IDEA LTD-28,264.60-2.2864,539.3
TATA TELESERVICES (MAHARASHTRA) LTD-1,278.24-10.9814,032.5
RAILTEL CORPORATION OF INDIA LTD201.6264.7213,049.4
HATHWAY CABLE & DATACOM LTD75.1135.442,662.2
MAHANAGAR TELEPHONE NIGAM LTD-3,288.34-0.892,911.9
RELIANCE COMMUNICATIONS LTD-123.00-3.69453.6
GTL LTD162.251.08175.5

Telecommunication - Service Provider Industry Benchmark (Top 10) PE Analysis vs TATA COMMUNICATIONS 's P/E Ratio

Top 10 Industry PeersPE Ratio
Min industry PE -10.98x
Max industry PE 96.24x
Median industry PE 9.15x
Average industry PE 23.06x



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