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TATA COMMUNICATIONS
PE (Price/Earnings) Ratio

The Current P/E Ratio of TATA COMMUNICATIONS is 55.62.

Share Price ₹1,853.2Apr 18,2024
Market Cap ₹52,816.2 Cr
Earnings-TTM₹949.6 CrTTM-Consolidated Results
Price/Earnings55.62xCalculated 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 [ ₹52,816.2 Cr] as on Apr 18,2024

(/) Earnings [ ₹949.6 Cr] based on TTM-Consolidated Results

(=) P/E Ratio [ 55.62x ]

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 55.62 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 55.62x.

- TATA COMMUNICATIONS 's p/e ratio for fiscal years ending Mar2023 to Mar2019 averaged 13.52x.

- TATA COMMUNICATIONS 's operated at median p/e ratio of 19.75x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, TATA COMMUNICATIONS 's p/e ratio peaked in Mar2021 at 24.21x.

- 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 949.5955.6252,816.2
BHARTI AIRTEL LTD8,235.7093.26768,068.0
INDUS TOWERS LTD5,582.2016.6492,867.5
VODAFONE IDEA LTD-29,979.80-2.2166,158.2
TATA TELESERVICES (MAHARASHTRA) LTD-1,196.17-12.4814,927.8
RAILTEL CORPORATION OF INDIA LTD201.6257.9411,682.2
HATHWAY CABLE & DATACOM LTD62.9361.943,897.8
MAHANAGAR TELEPHONE NIGAM LTD-3,234.44-0.702,251.6
RELIANCE COMMUNICATIONS LTD-60.00-8.16489.5
GTL LTD91.301.79163.8

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

Top 10 Industry PeersPE Ratio
Min industry PE -12.48x
Max industry PE 93.26x
Median industry PE 16.64x
Average industry PE 26.36x



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