Tata Consultancy Services Limited (TCS) fair value: what the stock is really worth
As of Oct 22, 2026: fair value (intrinsic value) of Tata Consultancy Services Limited stock ₹2,993, price ₹2,507, upside +19.4%, quality 76 out of 100. Rating: undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 22, 2026.
How to read this chart
60‑month range ₹1,961 – ₹4,217 · fair‑value band ₹1,931 – ₹3,982 · the ₹2,507 price screens below the ₹2,993 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 22, 2026.
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Tata Consultancy Services Limited provides information technology (IT) and IT enabled services.
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It offers TCS ADD, a suite of AI powered life sciences platforms; TCS BaNCS, a financial services platform; TCS BFSI Platforms, a cloud-native, subscription-based as-a-service digital ecosystem for insurers and financial firms; TCS Chroma, a cloud-based AI-led hire-to-retire modular platform; TCS Customer Intelligence & Insights, an AI-powered, real-time customer data analytics solution; TCS ERP on Cloud, SAP transformation with AI-powered smart solutions; ignio, a cognitive automation software product; TCS iON, a learning ecosystem; and TCS HOBS, a cloud-native, catalog-centric platform with composable architecture and insights-led personalization capabilities.
It also offers TCS Intelligent Urban Exchange for enterprises and smart cities; TCS OmniStore, a retail commerce platform; TCS Optumera, a strategic intelligence platform; TCS Tap, a platform for intelligent procurement; Quartz, a distributed ledger technology; TCS TwinX, a risk-free experimentation platform; TCS MasterCraft, an AI-driven cognitive automation product; Jile, an enterprise agile planning and delivery tool; TCS DigiBOLT, an end-to-end, organization-wide enterprise platform; and TCS AI WisdomNext, an enterprise grade GenAI platform.
In addition, the company provides AI, data and analytics, cloud, cognitive business, consulting, cybersecurity, enterprise solutions, industrial autonomy and engineering, network solutions and services, TCS interactive, and sustainability services.
It serves banking; capital markets; consumer packaged goods and distribution; communications, media, and information services; education; energy, resources, and utilities; healthcare; high tech; insurance; life sciences; manufacturing; public services; retail; and travel and logistics industries.
The company was founded in 1968 and is based in Mumbai, India. The company operates as a subsidiary of Tata Sons Private Limited.
Stock analysis
Tata Consultancy Services Limited (TCS) currently trades at ₹2,507, while our model-based Fair Value estimate is ₹2,993, implying the stock looks roughly 16.3% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of ₹2,993 per share, and 15 of the 26 models we run sit above the ₹2,507 price.
Bear case: the Economic Profit group reads lowest at ₹853.27, and 11 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: ₹1,931 (bear) to ₹3,982 (bull), the price of ₹2,507 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 76/100 (high quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Tata Consultancy Services Limited reported revenue of ₹2.7T in FY2026 versus ₹1.9T in FY2022, a compound +8.6%/yr. Reported net income was ₹492B in FY2026, compounding +6.4%/yr from FY2022.
Key figures
Market cap ₹9.1T (≈ $95.7B) Large · P/E ratio 17.6 · P/S ratio 3.20 · EPS (TTM) ₹142.66 · Dividend yield 4.3% · Net margin 18.2% · Return on equity 45.6% · Return on assets (EBIT) 37.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 93 out of 100 (high confidence).
What moves the price
The share trades about 22% below its 52-week high and 28% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at 35% fair-value upside, at 19%, TCS screens richer than that median.
Fair Value models
Bear₹1,931Fair Value ₹2,993Bull₹3,982
Price ₹2,507 · Upside +19.4%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (₹18.90 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.91/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+4.6%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.2%
Start year 2021 (pandemic). Over 10 years: +9.4% a year
Revenue growth 21 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+15.4%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+13.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year+9.4%
Dividend (yield on the price)4.3%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.9.4% vs 8.2%, steady
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.26% → 25%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes about as much growth as the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+8.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+5.4%
Yearly sales growth analysts expect, extended to five years.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +3.9% a year for the price and +1.2% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (94 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Negative
Recent news coverage is more negative than average.
Compare Tata Consultancy Services Limited with another stock
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Information Technology Services · 464 stocks
Beats the industry median on 10/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score76 · Top 25%
Fair Value upside+19.4% · Above median
Profitability
Return on equity (12 months)45.6% · Top 25%
Return on assets27.0% · Top 25%
Net margin (12 months)18.2% · Top 25%
Operating margin (12 months)24.0% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)11.2% · Above median
Dividend yield (12 months)4.3% · Top 25%
Balance sheet
Debt / equity0.00× · Below median
Valuation Multiplesvs Information Technology Services median · lower = cheaper
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Is Tata Consultancy Services Limited (TCS) overvalued or undervalued?
As of Oct 22, 2026, our model estimates a fair value of ₹2,993 versus a price of ₹2,507, about +19% upside (undervalued).
What is the fair value of TCS?
Our model-based fair value for Tata Consultancy Services Limited is ₹2,993 (as of Oct 22, 2026), built from audited fundamentals. The current price: ₹2,507.
What is the quality score of TCS?
Tata Consultancy Services Limited has a Quality Score of 76/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Tata Consultancy Services Limited (TCS)?
Our model-based price target is the fair value of ₹2,993 (as of Oct 22, 2026) from 26 valuation models. Cautious scenario ₹1,931, optimistic scenario ₹3,982. It is a calculation from audited fundamentals, not an analyst target.
What is the Tata Consultancy Services Limited stock forecast for 2026?
Our models put fair value at ₹2,993, about +19% upside versus a price of ₹2,507 (undervalued). Cautious scenario ₹1,931, optimistic scenario ₹3,982. The calculation is refreshed regularly with new filings.
What is the revenue of Tata Consultancy Services Limited (TCS)?
Tata Consultancy Services Limited reported trailing-twelve-month revenue of about ₹2.8T (latest available figure, as of Oct 22, 2026).
Does Tata Consultancy Services Limited pay a dividend?
Tata Consultancy Services Limited currently shows a dividend yield of 4.35% relative to its recent price (as of Oct 22, 2026).
What growth is priced into Tata Consultancy Services Limited (TCS)?
For today's price to be fair in a discounted-cash-flow model, Tata Consultancy Services Limited would have to grow free cash flow by +8.2 % per year for five years (discount rate 10.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +10.2 % per year. As of Oct 22, 2026.
What discount rate (WACC) does the fair value of TCS use?
Our models discount Tata Consultancy Services Limited at 10.4 %: a base by market capitalisation (large), damped by beta 0.18, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Tata Consultancy Services Limited that is +8.2 % per year a year over ten years, using the same discount rate (10.4 %) and the same formula as our fair value.
How much growth has Tata Consultancy Services Limited (TCS) delivered so far?
Over the past 5 years revenue at Tata Consultancy Services Limited grew +10.2 % a year. The price currently implies +8.2 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Tata Consultancy Services Limited (TCS) growing?
The median revenue growth in the sector is +10.7 % a year. That is the yardstick for the growth priced into Tata Consultancy Services Limited (+8.2 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Tata Consultancy Services Limited (TCS)?
The free-cash-flow yield on the price is 5.57 %: that much free cash flow Tata Consultancy Services Limited produces per unit of market value. When it exceeds the discount rate of our models (10.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Tata Consultancy Services Limited (TCS)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Tata Consultancy Services Limited it is ₹2,993 per share (as of Oct 22, 2026), against a price of ₹2,507. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Tata Consultancy Services Limited stock overvalued or undervalued in 2026?
As of Oct 22, 2026, TCS trades below its calculated fair value: price ₹2,507, fair value ₹2,993, a gap of about +19% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of TCS?
No. The price is what the market pays today (₹2,507); the fair value is what the company's own numbers justify (₹2,993). For Tata Consultancy Services Limited the two are ₹486.54 per share apart. That gap is exactly why we show both numbers side by side.
How much is Tata Consultancy Services Limited worth?
The market values Tata Consultancy Services Limited at about ₹9.1T (market capitalisation, as of Oct 22, 2026). Per share that is ₹2,507; our models calculate a fair value of ₹2,993 per share.
What do the bullish and bearish scenarios say about TCS?
Our models span a range for Tata Consultancy Services Limited: cautious scenario ₹1,931, base ₹2,993, optimistic ₹3,982 per share (as of Oct 22, 2026, price ₹2,507). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of TCS?
Tata Consultancy Services Limited trades at a price-to-earnings ratio of 17.6 (as of Oct 22, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹2,993 is built from several models across several years. Median P/E at fiscal year-end, 8 fiscal years (2019 to 2026), reported earnings: 27.3. Other multiples: PEG 2.7, P/B 8.5, P/S 3.2, EV/EBITDA 12.4.
What is the PEG ratio of TCS?
The PEG ratio of Tata Consultancy Services Limited is 2.73 (P/E divided by earnings growth, as of Oct 22, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Tata Consultancy Services Limited (TCS)?
Balance-sheet figures for Tata Consultancy Services Limited (as of Oct 22, 2026): return on equity 45.6%, debt of 0.00 per unit of equity. They feed the Quality Score of 76/100, which measures business quality independently of the share price.
How far is TCS from its 52-week high?
Tata Consultancy Services Limited trades at ₹2,507, about 22% below its 52-week high of ₹3,216 and 28% above the low of ₹1,961 (as of Oct 22, 2026). Distance from the high says nothing about value: that is what the fair value of ₹2,993 is for.
Which stocks are comparable to Tata Consultancy Services Limited?
From the same area (Technology) we also value International Business Machines Corporation, Accenture plc, Infosys Limited, HCL Technologies Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Tata Consultancy Services Limited stock attractive at the current price?
The data as of Oct 22, 2026: price ₹2,507, calculated fair value ₹2,993 (+19%), Quality Score 76/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of TCS calculated?
We run Tata Consultancy Services Limited through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹2,993, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.1 % above its aggregate fair value. Tata Consultancy Services Limited currently trades 16 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Tata Consultancy Services Limited (TCS)?
The closing price on Oct 22, 2026 was ₹2,507. Our model-based fair value is ₹2,993, about +19% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Tata Consultancy Services Limited right now?
A fairly wide model range (₹1,931 to ₹3,982) leaves room in how you read the outcome. The price sits in the lower half of our model range, the side with the larger margin of safety. The data supports the verdict: every model runs on fully documented inputs.
Where does the earnings growth of Tata Consultancy Services Limited (TCS) come from?
Earnings per share at Tata Consultancy Services Limited grew +9.2 % a year from 2015 to 2026. Broken into its drivers: revenue per share +11.1 %, EBIT margin −0.4 %, tax rate −0.2 %, residual (interest, one-offs) −1.1 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Tata Consultancy Services Limited
How large is the market capitalisation of Tata Consultancy Services Limited (TCS)?
The market capitalisation of Tata Consultancy Services Limited is ₹9.1T (≈ $95.7B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Tata Consultancy Services Limited (TCS)?
The price-to-sales ratio of Tata Consultancy Services Limited is 3.20 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Tata Consultancy Services Limited (TCS)?
Earnings per share at Tata Consultancy Services Limited are ₹142.66 (price ÷ EPS = P/E 17.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Tata Consultancy Services Limited (TCS)?
The dividend yield of Tata Consultancy Services Limited is 4.3% (payout 76.4%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Tata Consultancy Services Limited (TCS)?
The net margin of Tata Consultancy Services Limited is 18.2% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Tata Consultancy Services Limited (TCS)?
The return on equity (ROE) of Tata Consultancy Services Limited is 45.6% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Tata Consultancy Services Limited (TCS)?
On an EBIT basis the return on assets of Tata Consultancy Services Limited is 37.7% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Tata Consultancy Services Limited (TCS)?
The operating margin of Tata Consultancy Services Limited is 24.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Tata Consultancy Services Limited (TCS)?
Revenue at Tata Consultancy Services Limited is growing +11.2% versus a year earlier (3y avg +5.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Tata Consultancy Services Limited (TCS)?
Earnings per share at Tata Consultancy Services Limited are growing +15.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Tata Consultancy Services Limited (TCS) carry?
The net debt of Tata Consultancy Services Limited is ₹42.6B (fiscal year 2026, ≈ 0.1 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Oct 22, 2026