Tata Consultancy Services Intrinsic Value
Tata Consultancy Services (TCS) median intrinsic value is ₹3197.95 from 10 valuation models (range ₹971–₹5636), vs current price ₹2254.30 — +41.9% upside (Trading Below Calculated Value), margin of safety 29.5%. Read TCS dividend yield for the complete payout history and dividend yield track record.
TCS Valuation Methods Summary — DCF, Graham Number & P/E
Tata Consultancy Services intrinsic value across 10 models vs current price ₹2254.30 — upside/downside and value range per method. Analyse TCS shareholding pattern to track promoter, FII and institutional holdings.
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹1820.16 | ₹1456.13 - ₹2184.19 | -19.3% | EPS: ₹151.68, Sector P/E: 12x |
| Book Value Method | asset | ₹2996.63 | ₹2696.97 - ₹3296.29 | +32.9% | Book Value/Share: ₹2996.63, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹4508.60 | ₹4057.74 - ₹4959.46 | +100.0% | Revenue/Share: ₹7895.58, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹4508.60 | ₹4057.74 - ₹4959.46 | +100.0% | EBITDA: ₹80132.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹5635.75 | ₹4508.60 - ₹6762.90 | +150.0% | CF Growth: 6.9%, Discount: 15% |
| PEG Ratio Method | growth | ₹970.75 | ₹873.68 - ₹1067.83 | -56.9% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹1249.84 | ₹1124.86 - ₹1374.82 | -44.6% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹4508.60 | ₹4057.74 - ₹4959.46 | +100.0% | ROE: 50.8%, P/E Multiple: 16x |
| Graham Defensive Method | conservative | ₹3197.95 | ₹2878.15 - ₹3517.74 | +41.9% | EPS: ₹151.68, BVPS: ₹2996.63 |
| Dividend Yield Method | dividend | ₹3142.86 | ₹2828.57 - ₹3457.15 | +39.4% | DPS: ₹110.00, Target Yield: 3.5% |
TCS Intrinsic Value vs Market Price — All Valuation Models
Tata Consultancy Services fair value range ₹971–₹5636 vs current market price ₹2254.30 across 10 valuation models. For current market price and key ratios, visit Tata Consultancy Services share price screener.
TCS Intrinsic Value Analysis — Undervalued or Overvalued?
Tata Consultancy Services median intrinsic value ₹3197.95, current price ₹2254.30 — Trading Below Calculated Value by 41.9%, margin of safety 29.5%.
What is the intrinsic value of TCS?
Based on our comprehensive analysis using 10 different valuation methods, the estimated intrinsic value of Tata Consultancy Services (TCS) is ₹3197.95 (median value). With the current market price of ₹2254.30, this represents a +41.9% variance from our estimated fair value.
The valuation range spans from ₹970.75 to ₹5635.75, indicating ₹970.75 - ₹5635.75.
Is TCS undervalued or overvalued?
Based on our multi-method analysis, Tata Consultancy Services (TCS) appears to be trading below calculated value by approximately 41.9%.
TCS Financial Health — Key Ratios vs Industry Benchmarks
Tata Consultancy Services financial ratios — ROE, debt-to-equity, profit margins and liquidity vs industry benchmarks and their impact on intrinsic value.
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 10.45 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Return on Equity | 50.8% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 27.0% | Industry Standard: 20%+ | Above 20% | Indicates operational efficiency level |
| Asset Turnover Ratio | 1.57x | Industry Standard: 1.0x+ | Above 1.0x | Measures asset utilization efficiency |
TCS Cash Flow Quality — Operating & Free Cash Flow
Tata Consultancy Services operating cash flow, free cash flow, quality rating and sustainability score by period — key inputs to DCF intrinsic value calculation.
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2026 | ₹52,094 Cr | ₹46,151 Cr | Positive Free Cash Flow | 8/10 |
| 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 |