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?
A strong business, trading 34% below our fair value of ₹3,473.
Strengths
For context
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)
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.
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.
All 26 models by family
Widest divergence: DCF Models (₹3,508) versus Asset-Based (₹198.82). Highest evidence: FCF DCF (77).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 22, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 72 · Market factors (momentum, volatility) 44
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.
of which total revenue +10.1 % · buybacks/dilution +0.9 %
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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Earlier news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Porsche sells MHP consulting unit to TCS in $1.5 billion AI deal
- TCS to acquire Porsche’s MHP subsidiary in $373m deal
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.
Valuation Multiples vs Information Technology Services median · lower = cheaper
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.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
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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