Yahoo Finance What Should We Expect From Tata Motors Limited’s (NSE:TATAMTRDVR) Earnings In The Next Couple Of Years?
The most recent earnings release Tata Motors Limited’s (NSEI:TATAMTRDVR) announced in March 2018 signalled that the company gained from a robust tailwind, eventuating to a double-digit earnings growth of 46.85%. Below, I’ve presented key growth figures on how market analysts perceive Tata Motors’s earnings growth outlook over the next few years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. Check out our latest analysis for Tata Motors
Analysts’ expectations for next year seems optimistic, with earnings rising by a robust 17.09%. This growth seems to continue into the following year with rates arriving at double digit 54.04% compared to today’s earnings, and finally hitting ₹146.74B by 2021.
Even though it’s informative understanding the growth rate year by year relative to today’s figure, it may be more valuable determining the rate at which the business is moving on average every year. The advantage of this method is that it ignores near term flucuations and accounts for the overarching direction of Tata Motors’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 17.89%. This means that, we can anticipate Tata Motors will grow its earnings by 17.89% every year for the next couple of years.
Next Steps:
For Tata Motors, I’ve put together three pertinent aspects you should further research:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is TATAMTRDVR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TATAMTRDVR is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of TATAMTRDVR? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
