GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Tata Communications Ltd (BOM:500483) » Definitions » PEG Ratio

Tata Communications (BOM:500483) PEG Ratio : 4.70 (As of May. 19, 2024)


View and export this data going back to 1995. Start your Free Trial

What is Tata Communications PEG Ratio?

PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Tata Communications's PE Ratio without NRI is 45.55. Tata Communications's 5-Year EBITDA growth rate is 9.70%. Therefore, Tata Communications's PEG Ratio for today is 4.70.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


The historical rank and industry rank for Tata Communications's PEG Ratio or its related term are showing as below:

BOM:500483' s PEG Ratio Range Over the Past 10 Years
Min: 0.55   Med: 1.74   Max: 89.86
Current: 4.7


During the past 13 years, Tata Communications's highest PEG Ratio was 89.86. The lowest was 0.55. And the median was 1.74.


BOM:500483's PEG Ratio is ranked worse than
75.58% of 172 companies
in the Telecommunication Services industry
Industry Median: 2.315 vs BOM:500483: 4.70

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.


Tata Communications PEG Ratio Historical Data

The historical data trend for Tata Communications's PEG Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Tata Communications PEG Ratio Chart

Tata Communications Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
PEG Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 1.65 0.84 1.17 5.10

Tata Communications Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
PEG Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.17 1.82 3.04 3.93 5.10

Competitive Comparison of Tata Communications's PEG Ratio

For the Telecom Services subindustry, Tata Communications's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Tata Communications's PEG Ratio Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Tata Communications's PEG Ratio distribution charts can be found below:

* The bar in red indicates where Tata Communications's PEG Ratio falls into.



Tata Communications PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Tata Communications's PEG Ratio for today is calculated as

PEG Ratio=PE Ratio without NRI/5-Year EBITDA Growth Rate*
=45.554291492858/9.70
=4.70

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


Tata Communications  (BOM:500483) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Tata Communications PEG Ratio Related Terms

Thank you for viewing the detailed overview of Tata Communications's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Tata Communications (BOM:500483) Business Description

Traded in Other Exchanges
Address
Plot No. C21 & C36, ‘G’ Block, Bandra Kurla Complex, Mumbai, MH, IND, 400 098
Tata Communications Ltd is the primary provider of international and national voice and data transmission long-distance services, internet dial-up and broadband services and other value-added services. Since the deregulation of the Indian market, the company has diversified its businesses through acquisitions and entering new markets. Following the acquisition of Tyco's and Teleglobe's networks, Tata has become a major global voice and data carrier.

Tata Communications (BOM:500483) Headlines

No Headlines