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Tata Consultancy Services Limited (TCS) Fair Value & Analysis

Technology · IN · Market cap ₹7.9T (≈ $83.9B) · ISIN INE467B01029

What is Tata Consultancy Services Limited really worth?

TC Tata Consultancy Services Limited TCS · NSE
Price₹2,304
Fair Value₹3,473
Upside+50.7%
Quality76/100

A strong business, trading 34% below our fair value of ₹3,473.

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Strengths

Healthy Growth (revenue 5y +10.2 %/yr)
Solidly profitable · 18.1% net margin
Low debt · generates free cash flow
Ranks above peers (11/15)
Wide moat 93/100

For context

·2.82% dividend yield
Evidence: High Range ₹1,971 – ₹4,490

Fair value as of: Aug 22, 2026

From 26 valuation models · updated 14 days ago

Share price −4.5% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The rarer combination: high quality (76/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • A fairly wide model range (₹1,971 to ₹4,490) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

₹4,254 ₹1,983 Fair Value ₹3,473 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 22, 2026.

How to read this chart

60‑month range ₹1,983 – ₹4,254 · fair‑value band ₹1,971 – ₹4,490 · the ₹2,304 price screens below the ₹3,473 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 22, 2026.

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Analysis

Tata Consultancy Services Limited (TCS) currently trades at ₹2,304, while our model-based Fair Value estimate is ₹3,473, implying the stock looks roughly 33.7% undervalued today. The Quality Score stands at 76/100 (high quality), in the Technology sector. Bull case: the DCF Models group reads highest at a median of ₹3,508 per share, and 17 of the 26 models we run sit above the ₹2,304 price. Bear case: the Economic Profit group reads lowest at ₹978.77, and 9 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Tata Consultancy Services Limited generated revenue of ₹2.7T at a net margin of 18.4%. Revenue grew 9.6% year over year. It earns a return on equity of 48.4%. Net debt stands at ₹42.6B. Fundamentals as of Aug 22, 2026

Our scenario range runs from ₹1,971 (bear case) to ₹4,490 (bull case); at ₹2,304, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 32% below its 52-week high and 6% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at 69% fair-value upside, at 51%, TCS screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹31.25 per share, which is 0.9 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model 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. Evidence
Highest evidence
FCF DCF best evidence ₹1,901 ₹3,475 ₹6,313 77
Growth DCF ₹1,897 ₹3,378 ₹6,033 75
EPV ₹1,422 ₹1,670 ₹1,891 74
All 26 models by family
DCF Models
FCF DCF best evidence ₹1,901 ₹3,475 ₹6,313 77
Owner Earnings ₹1,919 ₹3,508 ₹6,374 73
5Y Revenue Exit ₹1,748 ₹3,055 ₹4,824 71
5Y EBITDA Exit ₹2,322 ₹4,229 ₹6,621 73
5Y P/E Exit ₹2,421 ₹4,431 ₹6,727 69
10Y Revenue Exit ₹1,725 ₹3,000 ₹4,941 65
10Y EBITDA Exit ₹2,173 ₹3,877 ₹6,469 66
10Y P/E Exit ₹2,239 ₹4,027 ₹6,559 62
Earnings-Based
Graham-Dodd ₹924.88 ₹4,176 ₹5,726 64
Lynch FV ₹1,090 ₹1,557 ₹2,025 61
PEG = 1.0 ₹1,090 ₹1,557 ₹2,025 57
EPV ₹1,422 ₹1,670 ₹1,891 74
Dividend Discount
Gordon GGM ₹1,048 ₹2,289 ₹3,851 65
DDM Multi-Stage ₹1,048 ₹1,875 ₹2,385 66
Multiples
P/E Multiple ₹2,856 ₹3,808 ₹4,760 63
P/S Multiple ₹1,734 ₹2,312 ₹2,890 58
P/B Multiple ₹1,335 ₹1,780 ₹2,226 55
EV/EBIT ₹3,343 ₹4,452 ₹5,560 66
EV/EBITDA ₹2,720 ₹3,620 ₹4,521 67
EV/Revenue ₹1,699 ₹2,420 ₹3,140 53
Asset-Based
NCAV (Graham) ₹148.37 ₹198.82 ₹296.75 54
Growth DCF
Growth DCF ₹1,897 ₹3,378 ₹6,033 75
Rev-Margin DCF ₹1,748 ₹3,023 ₹4,656 71
Economic Profit
Residual Income ₹831.07 ₹978.77 ₹4,387 64
ROIC Compounder ₹1,550 ₹1,984 ₹2,494 72
Growth Earnings
Growth-Adj P/E ₹2,095 ₹2,993 ₹3,891 67

Widest divergence: DCF Models (₹3,508) versus Asset-Based (₹198.82). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 16.7
P/S ratio 3.08 P/E × margin
EPS (TTM) ₹137.65 price ÷ EPS = P/E 16.7
Dividend yield 2.8% payout 47.2%
Net margin 18.4% FY2026
Return on equity 47.7% TTM
More key figures
Profitability
Return on assets (EBIT) 37.7% avg 5y
Operating margin 24.0% TTM
Growth
Revenue (TTM) ₹2.8T TTM
Revenue growth (YoY) +13.9% 3y avg +5.8%
EPS growth (YoY) +4.6%
Balance sheet & cash flow
Free cash flow ₹505B FY2026
Net debt ₹42.6B FY2026 · ≈ 0.1 yrs of FCF

Figures from reported company fundamentals · as of Aug 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 76/100

Of which business quality 72 · Market factors (momentum, volatility) 44

Profitability 92
Margins and returns on capital today
Quality Growth 18
Are margins and returns improving?
Cashflow 72
Earnings quality: real cash, not paper profit
Fin. Strength 80
Balance sheet, leverage, solvency risk
Investment 76
Disciplined investing over empire-building
Low Volatility 85
Calm price path (market factor)
Momentum 33
Price trend over the last 3–12 months (market factor)
52W Momentum 17
Distance to the 52-week high (market factor)
Net Issuance 84
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Tata Consultancy Services Limited provides information technology (IT) and IT enabled services. 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 …

Full company description

Tata Consultancy Services Limited provides information technology (IT) and IT enabled services. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

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.

Growth Quality 91/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹2.7T
Latest YoY
+4.6%
Avg. revenue growth/yr (3Y) 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.
+5.8%
Avg. revenue growth/yr (5Y) 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.
+10.2%
Avg. revenue growth/yr (21Y) 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.
+15.4%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. 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.
+12.2% (9.4 + 2.8)
Revenue +8.6%/yr
FY22 ₹1.9T
FY23 ₹2.3T
FY24 ₹2.4T
FY25 ₹2.6T
FY26 ₹2.7T
Net income +6.4%/yr
FY22 ₹383B
FY23 ₹421B
FY24 ₹459B
FY25 ₹486B
FY26 ₹492B
Character of growth · EPS growth decomposed (2015-2026) +9.2 % p.a.
Revenue per share +11.1 %

of which total revenue +10.1 % · buybacks/dilution +0.9 %

EBIT margin −0.4 %
Tax rate −0.2 %
Residual (interest, one-offs) −1.1 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Tata Consultancy Services Limited Fair Value". https://www.fairvalue-calculator.com/stock/TCS

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Information Technology Services · 486 stocks

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.

Quality Score 76 · Top 25%
Fair Value upside +51% · Above median
Return on equity (TTM) 48% · Top 25%
Return on assets 24% · Top 25%
Net margin (TTM) 18% · Top 25%
Operating margin (TTM) 24% · Top 25%
Revenue growth 14% · Above median
Dividend yield (TTM) 2.8% · Above median
Debt / equity 0.00× · Lower than median

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/E (TTM) 16.7× · Cheaper than median
P/B 7.37× · Pricier than 75% of peers
P/S (TTM) 2.87× · Pricier than 75% of peers
P/FCF 0.2× · Cheaper than 75% of peers
EV/EBITDA 10.9× · Pricier than median
PEG 2.85× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 34
FUTURE70 · sector 31
PAST100 · sector 33
HEALTH100 · sector 97
DIVIDEND56 · sector 36

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Aug 22, 2026).

Stock Price Fair Value vs Fair Value
International Business Machines Corporation IBM $235.59 $175.76 −25%
Accenture plc ACN $189.61 $334.27 +76%
Infosys Limited INFY ₹1,156 ₹1,958 +69%
HCL Technologies Limited HCLTECH ₹1,282 ₹1,722 +34%
Fiserv, Inc FI C$5.13 C$8.07 +57%
Wipro Limited WIT $1.83 $3.51 +92%
Fidelity National Information Services, Inc FIS $41.34 $19.28 −53%
Cognizant Technology Solutions Corporation CTSH $64.04 $132.01 +106%
Capgemini SE CAP €109.45 €222.79 +104%
CDW Corporation CDW $153.92 $179.36 +17%

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Frequently asked questions

Is Tata Consultancy Services Limited (TCS) overvalued or undervalued?
As of Aug 22, 2026, our model estimates a fair value of ₹3,473 versus a price of ₹2,304, about +51% upside (undervalued).
What is the fair value of TCS?
Our model-based fair value for Tata Consultancy Services Limited is ₹3,473 (as of Aug 22, 2026), built from audited fundamentals. The current price: ₹2,304.
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 revenue of Tata Consultancy Services Limited (TCS)?
Tata Consultancy Services Limited reported trailing-twelve-month revenue of about ₹2.7T (latest available figure, as of Aug 22, 2026).
What is the net profit margin of TCS?
The net profit margin of Tata Consultancy Services Limited is about 18.4%, meaning it keeps roughly 18.4% of revenue as net income. Based on the latest reported figures.
Does Tata Consultancy Services Limited pay a dividend?
Tata Consultancy Services Limited currently shows a dividend yield of about 2.82% relative to its recent price (as of Aug 22, 2026).
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