Tata Consultancy Services Intrinsic Value
TCS Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹1601.76 | ₹1281.41 - ₹1922.11 | -40.4% | EPS: ₹133.48, Sector P/E: 12x |
| Book Value Method | asset | ₹2645.61 | ₹2381.05 - ₹2910.17 | -1.5% | Book Value/Share: ₹2645.61, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹5372.40 | ₹4835.16 - ₹5909.64 | +100.0% | Revenue/Share: ₹7366.41, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹5372.40 | ₹4835.16 - ₹5909.64 | +100.0% | EBITDA: ₹70840.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹6715.50 | ₹5372.40 - ₹8058.60 | +150.0% | CF Growth: 6.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹854.27 | ₹768.84 - ₹939.70 | -68.2% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹1099.88 | ₹989.89 - ₹1209.87 | -59.1% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹5372.40 | ₹4835.16 - ₹5909.64 | +100.0% | ROE: 50.7%, P/E Multiple: 16x |
| Graham Defensive Method | conservative | ₹2818.79 | ₹2536.91 - ₹3100.67 | +4.9% | EPS: ₹133.48, BVPS: ₹2645.61 |
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Valuation Comparison Chart
TCS Intrinsic Value Analysis
What is the intrinsic value of TCS?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Tata Consultancy Services (TCS) is ₹2818.79 (median value). With the current market price of ₹2686.20, this represents a +4.9% variance from our estimated fair value.
The valuation range spans from ₹854.27 to ₹6715.50, indicating ₹854.27 - ₹6715.50.
Is TCS undervalued or overvalued?
Based on our multi-method analysis, Tata Consultancy Services (TCS) appears to be trading near calculated value by approximately 4.9%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 11.33 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Debt to Equity Ratio | 1.67 | Industry Standard: <0.5 | Above 1.0 | Indicates financial leverage level |
| Return on Equity | 50.7% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 26.0% | Industry Standard: 20%+ | Above 20% | Indicates operational efficiency level |
| Asset Turnover Ratio | 1.67x | Industry Standard: 1.0x+ | Above 1.0x | Measures asset utilization efficiency |
Related Pages for Tata Consultancy Services
Additional stock information and data for TCS
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹48,908 Cr | ₹47,836 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹44,338 Cr | ₹44,338 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹41,965 Cr | ₹41,965 Cr | Positive Free Cash Flow | 8/10 |
| March 2022 | ₹39,949 Cr | ₹39,580 Cr | Positive Free Cash Flow | 8/10 |
| March 2021 | ₹38,802 Cr | ₹34,824 Cr | Positive Free Cash Flow | 8/10 |