Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Tata Motors Passenger Vehicles's 5-Year RORE % for the quarter that ended in Mar. 2026 was 24.02%.
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Tata Motors Passenger Vehicles 5-Year RORE % Related Terms
Tata Motors Passenger Vehicles 5-Year RORE % Historical Data
* 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 Auto Manufacturers subindustry, Tata Motors Passenger Vehicles's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 Motors Passenger Vehicles 5-Year RORE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Tata Motors Passenger Vehicles's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Tata Motors Passenger Vehicles's 5-Year RORE % 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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 5-year before.
Tata Motors Passenger Vehicles (NSE:TMPV) has a 5-Year RORE % of 24.02 as of Mar. 2026. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Tata Motors Passenger Vehicles and its competitors. According to the industry distribution chart, Tata Motors Passenger Vehicles ranks #364 out of 1162 companies in the Vehicles & Parts industry, placing it in the top 31.3%.
Is Tata Motors Passenger Vehicles' 5-Year RORE % too high?
Tata Motors Passenger Vehicles' current 5-Year RORE % is 24.02. The Vehicles & Parts industry median 5-Year RORE % is 8.86. Tata Motors Passenger Vehicles' value of 24.02 is 171.1% above this industry median. Based on the distribution chart, Tata Motors Passenger Vehicles ranks #364 out of 1162 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Tata Motors Passenger Vehicles has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tata Motors Passenger Vehicles' 5-Year RORE % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Tata Motors Passenger Vehicles ranks #364 out of 1162 companies for 5-Year RORE %. This puts Tata Motors Passenger Vehicles in the upper half of its industry. The industry median 5-Year RORE % is 8.86. Tata Motors Passenger Vehicles' value of 24.02 is 171.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year RORE % for a Vehicles & Parts company?
The median 5-Year RORE % among Vehicles & Parts companies is 8.86, based on 1,162 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Motors Passenger Vehicles's current 5-Year RORE % of 24.02 is 171.1% 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 5-Year RORE % mean?
A high 5-Year RORE % can signal that a stock is expensive relative to its fundamentals. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Tata Motors Passenger Vehicles and its competitors. For the Vehicles & Parts industry, the median 5-Year RORE % is 8.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Motors Passenger Vehicles's current 5-Year RORE % is 24.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tata Motors Passenger Vehicles stock overvalued right now?
Based on GuruFocus' analysis, Tata Motors Passenger Vehicles (NSE:TMPV) is currently considered Fairly Valued. The stock's GF Value™ is ₹333.08, compared to a current price of ₹349.70 — trading 5% above its estimated fair value. The current 5-Year RORE % is 24.02 and 171.1% above the Vehicles & Parts industry median of 8.86. Tata Motors Passenger Vehicles' overall GF Score™ is 69/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year RORE % calculated?
5-Year RORE % is calculated from a company's financial statements. For Tata Motors Passenger Vehicles (NSE:TMPV), the current 5-Year RORE % is 24.02 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 Motors Passenger Vehicles (NSE:TMPV) Overvalued in 2026?
Based on GuruFocus' analysis, Tata Motors Passenger Vehicles stock appears to be overvalued.
The current stock price of ₹349.70 is trading 5% above its estimated GF Value™ of ₹333.08.
GuruFocus considers Tata Motors Passenger Vehicles to be Fairly Valued.
Key valuation signals for NSE:TMPV:
5-Year RORE %: 24.02
GF Value™: ₹333.08 vs. price of ₹349.70 (5% above fair value)
Industry Position: 171.1% above the Vehicles & Parts median (#364 of 1162)
No single metric tells the full story. See the NSE:TMPV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tata Motors Passenger Vehicles Business Description
Tata Motors Passenger Vehicles Ltd Formerly Tata Motors Ltd designs, manufactures and sells a wide range of automotive vehicles and provides information technology services. The company also manufactures engines for industrial applications. Its operating segments include Automotive and Others. It mainly operates in the automotive business. The automotive business includes all activities relating to development, design, manufacture, assembly and sale of vehicles, as well as sale of related parts, accessories and services. The Automotive segment consists of three reportable sub-segments: Tata Commercial Vehicles, Tata Passenger Vehicles and Jaguar Land Rover of which majority of revenue comes from Jaguar Land Rover. It has majority of sales from India followed by United States, UK, etc.
69GF Score
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