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TATA COMMUNICATIONS
PE (Price/Earnings) Ratio

The Current P/E Ratio of TATA COMMUNICATIONS is 54.52.

Share Price ₹1,739.1Nov 22,2024
Market Cap ₹49,562.9 Cr
Earnings-TTM₹909.1 CrTTM-Consolidated Results
Price/Earnings54.52xCalculated 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 [ ₹49,562.9 Cr] as on Nov 22,2024

(/) Earnings [ ₹909.1 Cr] based on TTM-Consolidated Results

(=) P/E Ratio [ 54.52x ]

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 54.52 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 54.52x.

- 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 909.1454.5249,562.9
BHARTI AIRTEL LTD10,296.4092.82955,662.0
INDUS TOWERS LTD7,543.0011.5587,085.8
VODAFONE IDEA LTD-28,264.60-1.6446,489.8
TATA TELESERVICES (MAHARASHTRA) LTD-1,270.82-10.2813,066.7
RAILTEL CORPORATION OF INDIA LTD201.6258.0811,711.0
HATHWAY CABLE & DATACOM LTD78.7640.793,212.7
MAHANAGAR TELEPHONE NIGAM LTD-3,288.34-0.822,709.6
RELIANCE COMMUNICATIONS LTD-123.00-4.34533.8
GTL LTD162.251.15186.7

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

Top 10 Industry PeersPE Ratio
Min industry PE -10.28x
Max industry PE 92.82x
Median industry PE 11.55x
Average industry PE 24.18x



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