Tata SteelLSE:TTST 77 ROE % is 11.45% as of Mar. 2026, which is 26% above its 10-year median of 9.09. GuruFocus rates LSE:TTST with a GF Score™ of 77/100 and a GF Value™ of $17.66 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 622 Steel companies, Tata Steel ranks better than 80.55% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Tata Steel's annualized net income for the quarter that ended in Mar. 2026 was $1,261 Mil. Tata Steel's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $11,007 Mil. Therefore, Tata Steel's annualized ROE % for the quarter that ended in Mar. 2026 was 11.45%.
The historical rank and industry rank for Tata Steel's ROE % or its related term are showing as below:
LSE:TTST'
s ROE % Range Over the Past 10 Years
Min: -10.4 Med: 9.09 Max: 42.56
Current: 11.23
During the past 13 years, Tata Steel's highest ROE % was 42.56%. The lowest was -10.40%. And the median was 9.09%.
LSE:TTST's ROE % is ranked better than 80.55% of 622
companies
in the Steel industry
Industry Median: 3.69
vs LSE:TTST: 11.23
Tata Steel (LSE:TTST) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Tata Steel ROE % Related Terms
Tata Steel ROE % Historical Data
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The historical data trend for Tata Steel's ROE % 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.
For the Steel subindustry, Tata Steel's ROE %, along with its competitors' market caps and ROE % 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 Steel ROE % vs Steel Industry
For the Steel industry and Basic Materials sector, Tata Steel's ROE % distribution charts can be found below:
* The bar in red indicates where Tata Steel's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Tata Steel (LSE:TTST) has a ROE % of 11.45% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Tata Steel and its competitors. This is 26% above median its historical median of 9.09. According to the industry distribution chart, Tata Steel ranks #121 out of 622 companies in the Steel industry, placing it in the top 19.5%.
Is Tata Steel's ROE % too high?
Tata Steel's current ROE % of 11.45% is 26% above median its 10-year median of 9.09. The Steel industry median ROE % is 3.69. Tata Steel's value of 11.45% is 210.3% above this industry median. Based on the distribution chart, Tata Steel ranks #121 out of 622 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Tata Steel has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tata Steel's ROE % compare to NUE and STLD?
According to the Steel industry distribution chart, Tata Steel ranks #121 out of 622 companies for ROE %. This places Tata Steel in the top 20% of its industry — outperforming the majority of peers. The industry median ROE % is 3.69. Tata Steel's value of 11.45% is 210.3% above this benchmark. While the company's 10-year median is 9.09 vs. the industry median of 3.69, Tata Steel has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Steel company?
The median ROE % among Steel companies is 3.69, based on 622 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Steel's current ROE % of 11.45% is 210.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Tata Steel and its competitors. For the Steel industry, the median ROE % is 3.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Steel's current ROE % is 11.45%, which is 26% above median its own 10-year median of 9.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tata Steel stock overvalued right now?
Based on GuruFocus' analysis, Tata Steel (LSE:TTST) is currently considered Modestly Overvalued. The stock's GF Value™ is $17.66, compared to a current price of $20.40 — trading 15.5% above its estimated fair value. The current ROE % is 11.45%, which is 26% above median its 10-year median of 9.09 and 210.3% above the Steel industry median of 3.69. Tata Steel's overall GF Score™ is 77/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Tata Steel (LSE:TTST), the current ROE % is 11.45% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tata Steel (LSE:TTST) Overvalued in 2026?
Based on GuruFocus' analysis, Tata Steel stock appears to be overvalued.
The current stock price of $20.40 is trading 15.5% above its estimated GF Value™ of $17.66.
GuruFocus considers Tata Steel to be Modestly Overvalued.
Key valuation signals for LSE:TTST:
ROE %: 11.45% (26% above median its 10-year median of 9.09)
GF Value™: $17.66 vs. price of $20.40 (15.5% above fair value)
Industry Position: 210.3% above the Steel median (#121 of 622)
No single metric tells the full story. See the LSE:TTST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tata Steel Ltd is an India-based company that is engaged in the production and marketing of various steel products. Its products are basically classified into flat products and construction products. Flat products include hot-rolled steel, cold-rolled steel, metallic-coated steel, direct-coated steel, tubes, packaging steel, electro-plated steel, and narrow strips. Its segments include Tata Steel India, Neelachal Ispat Nigam Limited, Other Indian operations, Tata Steel Europe, Other trade related operations, South-East Asian operations, and Rest of the world. It generates the majority of its revenue from the Tata Steel India segment.
77GF Score
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