Tata Steel PE Ratio

Tata Steel Ltd P/E Ratio Overview 

Tata Steel Ltd operates in the steel manufacturing sector, with activities spanning raw material processing to finished steel products. The Tata Steel PE ratio is commonly analysed to understand how the market is valuing its earnings in relation to its business scale and industry position. 

Calculation of P/E Ratio of Tata Steel Ltd 

The price-to-earnings (P/E) ratio of Tata Steel Ltd is calculated by comparing the company’s current share price with its earnings per share (EPS). This helps investors evaluate how much they are paying for each unit of earnings. 

Formula: 

P/E Ratio = Current Market Price per Share ÷ Earnings per Share (EPS) 

Let's understand the Tata Steel PE ratio formula with a hypothetical example: 

Current Market Cap [ ₹180,000 Cr] 

(/) Earnings [ ₹5,000 Cr] 

(=) P/E Ratio [ 36.0x ] 

How does Tata Steel Ltd P/E Ratio Benchmark Against Competitors? 

Benchmarking Tata Steel PE ratio against peer companies and the industry average provides perspective on its relative valuation. Such comparisons help in understanding whether the stock is trading at a premium or a discount compared to similar companies in the metals and materials industry, considering the differences in the companies' scale, earnings stability and growth expectation. 

P/E Ratio Performance Analysis for Tata Steel Ltd 

An analysis of historical PE of Tata Steel trends offers insight into how Tata Steel Ltd’s valuation has changed across different market and earnings cycles. 

• Recent financial data shows that Tata Steel PE ratio as of Jan 16, 2026 is currently trading at 36.50 P/E ratio. 
• From March 2021 to March 2025, the company traded at an overall low P/E ratio on average of 14.50, indicating pricing based on cyclical tendency. 
• Between fiscal years ending March 2018 and March 2022, stocks traded below median P/E ratio i.e 1.3x, suggesting cautious market expectations during that period. 
• The highest P/E ratio of 56.24 in the last five fiscal years was observed in March 2025, pointing to improved market sentiment at that time. 
• Lowest point of P/E ratio for TATA Steel was observed in the year 2024 i.e PE ratio of 0, indicating poor profitability at that time. 
• The Tata Steel Ltd P/E fluctuated to some extent over the past few years. 

Factors Affecting P/E Ratio of Tata Steel Ltd 

The PE ratio Tata Steel may change from time to time, depending on some factors, such as. 

• Earnings Outlook: Expectations around future profitability and steel demand play a key role in determining valuation levels. 
• Interest Rate: Changes in interest rates can impact equity valuations by altering return expectations. 
• Inflation and Economic Conditions: Input cost pressures and macroeconomic uncertainty may influence margins and investor sentiment. 
• Government Policies and Regulations: Regulations related to mining, trade duties, infrastructure spending, and environmental compliance can affect valuation multiples.