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Tata Consultancy Services Limited (TCS) Fair Value & Analysis

Technology · IN · Market cap ₹7.9T

TC Tata Consultancy Services Limited TCS · NSE
Price₹2,453
Fair Value₹2,590
Upside+5.6%
Quality76/100
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Healthy Growth
Solidly profitable · 18.1% net margin
Low debt · generates free cash flow
2.95% dividend yield
Ranks above peers (11/15)
Wide moat 93/100
Evidence: High Range ₹1,939 – ₹3,240 Share as image

Fair value as of: Jul 16, 2026

From 26 valuation models · updated 25 days ago

Share price +19.2% over the past month.

A strong business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from ₹1,939 (bear) to ₹3,240 (bull), base ₹2,590. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 76/100 (high quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

₹4,254 ₹1,983 Fair Value ₹2,590 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range ₹1,983 – ₹4,254 · fair‑value band ₹1,939 – ₹3,240 · the ₹2,453 price screens below the ₹2,590 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

Full chart & analysis →

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Analysis

Tata Consultancy Services Limited (TCS) currently trades at ₹2,453, while our model-based Fair Value estimate is ₹2,590, implying the stock looks roughly 5.6% fairly valued today. The Quality Score stands at 76/100 (high quality), in the Technology sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

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 Jul 16, 2026

Our scenario range runs from ₹1,939 (bear case) to ₹3,240 (bull case); at ₹2,453, 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 28% below its 52-week high and 13% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -25% fair-value upside, at 6%, TCS screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ₹1,897 ₹3,378 ₹6,033 80
Residual Income ₹831.07 ₹978.77 ₹4,387 76
Rev-Margin DCF ₹1,482 ₹2,493 ₹3,790 74
All 26 models by family
DCF Models
FCF DCF ₹1,901 ₹3,475 ₹6,313 38
Owner Earnings ₹1,919 ₹3,508 ₹6,374 31
5Y Revenue Exit ₹1,482 ₹2,511 ₹3,891 39
5Y EBITDA Exit ₹1,844 ₹3,251 ₹5,003 41
5Y P/E Exit ₹1,901 ₹3,367 ₹5,033 38
10Y Revenue Exit ₹1,559 ₹2,594 ₹4,147 36
10Y EBITDA Exit ₹1,849 ₹3,146 ₹5,093 37
10Y P/E Exit ₹1,888 ₹3,233 ₹5,118 35
Earnings-Based
Graham-Dodd ₹924.88 ₹4,176 ₹5,726 54
Lynch FV ₹1,090 ₹1,557 ₹2,025 50
PEG = 1.0 ₹1,090 ₹1,557 ₹2,025 46
EPV ₹1,422 ₹1,670 ₹1,891 59
Dividend Discount
Gordon GGM ₹1,048 ₹2,289 ₹3,851 70
DDM Multi-Stage ₹1,048 ₹1,875 ₹2,385 61
Multiples
P/E Multiple ₹2,040 ₹2,720 ₹3,400 63
P/S Multiple ₹1,384 ₹1,845 ₹2,306 58
P/B Multiple ₹667.68 ₹890.24 ₹1,113 55
EV/EBIT ₹2,512 ₹3,343 ₹4,175 53
EV/EBITDA ₹1,969 ₹2,620 ₹3,270 54
EV/Revenue ₹1,310 ₹1,863 ₹2,417 43
Asset-Based
NCAV (Graham) ₹148.37 ₹198.82 ₹296.75 50
Growth DCF
Growth DCF ₹1,897 ₹3,378 ₹6,033 80
Rev-Margin DCF ₹1,482 ₹2,493 ₹3,790 74
Economic Profit
Residual Income ₹831.07 ₹978.77 ₹4,387 76
ROIC Compounder ₹1,550 ₹1,984 ₹2,494 72
Growth Earnings
Growth-Adj P/E ₹1,721 ₹2,459 ₹3,196 68

Widest divergence: DCF Models (₹3,233) versus Asset-Based (₹198.82). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) ₹2.8T
Revenue growth (YoY) +13.9%
Net margin 18.1%
Return on equity 47.7%
Free cash flow ₹505B FY2026
P/E ratio 15.9
More key figures
Operating margin 24.0%
EPS (TTM) ₹137.65
Dividend yield 3.0%
EPS growth (YoY) +4.6%
Net debt ₹42.6B FY2026

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 76/100

Of which business quality 72 · Market factors (momentum, volatility) 41

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 86
Calm price path (market factor)
Momentum 21
Price trend over the last 3–12 months (market factor)
52W Momentum 25
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.

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. growth/yr (3Y)
+5.8%
Avg. growth/yr (5Y)
+10.2%
Avg. growth/yr (21Y)
+15.4%
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

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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 · 480 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 +6% · 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) 3.0% · Above median
Debt / equity 0.00× · Lower than median

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/E (TTM) 15.9× · 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

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.

VALUE 41 · sector 20
FUTURE 70 · sector 29
PAST 100 · sector 36
HEALTH 100 · sector 97
DIVIDEND 59 · sector 37

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
International Business Machines Corporation IBM $235.92 $143.90 -39%
Accenture plc ACNN 2,460 MXN 250.95 MXN -90%
Infosys Limited INFY ₹1,156 ₹1,457 +26%
HCL Technologies Limited HCLTECH ₹1,204 ₹1,230 +2%
Wipro Limited WIPRO ₹178.43 ₹226.81 +27%
Tech Mahindra Limited TECHM ₹1,455 ₹1,086 -25%
Samsung SDS Co 018260 199,300 KRW 196,390 KRW -1%
Persistent Systems Limited PERSISTENT ₹5,059 ₹2,364 -53%
Hyundai Autoever Corporation 307950 393,000 KRW 133,088 KRW -66%
Coforge Limited COFORGE ₹1,541 ₹702.84 -54%

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Frequently asked questions

Is Tata Consultancy Services Limited (TCS) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of ₹2,590 versus a price of ₹2,453, about +6% (fairly valued).
What is the fair value of TCS?
Our model-based fair value for Tata Consultancy Services Limited is ₹2,590 (as of Jul 16, 2026), built from audited fundamentals. The current price is ₹2,453.
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 Jul 16, 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 2.86% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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