Tata Consultancy Services Limited (TCS) fair value: what the stock is really worth
We calculate from audited financials what Tata Consultancy Services Limited is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily, free.
Compare price with fair valuebelow fair value = cheap, above = expensive
Check the quality50 and up solid, 75 and up strong
Watch it or check another stockalert when fair value or trend changes
Technology · IN · Market cap ₹8.0T (≈ $83.7B) · ISIN INE467B01029
At a glance
TCTata Consultancy Services LimitedTCS · NSE
Price₹2,204
Fair Value₹3,473
Upside+57.6%
Quality76/100
A strong business, trading 37% below our fair value of ₹3,473.
As of Aug 22, 2026, the fair value of Tata Consultancy Services Limited is ₹3,473 per share against a price of ₹2,204, so the fair value sits 58% above the price. A model estimate from reported figures, not an analyst target.
✓Healthy Growth (revenue 5y +10.2 %/yr)
✓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: HighRange ₹1,971 to ₹4,490
Fair value as of: Aug 22, 2026
From 26 valuation models · updated 20 days ago
Share price −9.9% over the past month.
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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 ₹2,204 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.
Tata Consultancy Services Limited (TCS) currently trades at ₹2,204, while our model-based Fair Value estimate is ₹3,473, implying the stock looks roughly 36.5% 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 18 of the 26 models we run sit above the ₹2,204 price. Bear case: the Economic Profit group reads lowest at ₹978.77, and 8 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
Scenario range: ₹1,971 (bear) to ₹4,490 (bull), the price of ₹2,204 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target. The share trades about 35% below its 52-week high and 1% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at 79% fair-value upside, at 58%, TCS screens richer than that median.
Fair Value models
Based on fiscal year 2026 figures (about 5 months old). Earnings retained since then (₹32.64 per share) are deliberately not added.
Each model values the company its own way; the fair value above is the evidence-weighted blend. Evidence (0 to 100) shows how complete a model's inputs are. How we calculate →
ModelBear ⓘ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
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Key figures & financial health
P/E ratio16.0
P/S ratio2.95P/E × margin
EPS (TTM)₹137.65price ÷ EPS = P/E 16.0
Dividend yield2.9%payout 47.2%
Net margin18.4%FY2026
Return on equity47.7%TTM
More key figures
Profitability
Return on assets (EBIT)37.7%avg 5y
Operating margin24.0%TTM
Growth
Revenue (TTM)₹2.8TTTM
Revenue growth (YoY)+13.9%3y avg +5.8%
EPS growth (YoY)+4.6%
Balance sheet & cash flow
Free cash flow₹505BFY2026
Net debt₹42.6BFY2026 · ≈ 0.1 yrs of FCF
Figures from reported company fundamentals · as of Aug 22, 2026. TTM = trailing twelve months.
Quality Score breakdown
Overall quality76/100
Of which business quality 72
· Market factors (momentum, volatility) 41
Profitability92
Margins and returns on capital today
Quality Growth18
Are margins and returns improving?
Cashflow72
Earnings quality: real cash, not paper profit
Fin. Strength80
Balance sheet, leverage, solvency risk
Investment76
Disciplined investing over empire-building
Low Volatility85
Calm price path (market factor)
Momentum30
Price trend over the last 3–12 months (market factor)
52W Momentum10
Distance to the 52-week high (market factor)
Net Issuance84
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.
+12.3%
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+9.4%
Dividend yield2.9%
Trend ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5Y 9.4% vs 10Y 8.2%, steady
Operating margin (EBIT) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.26.0% (2021) → 25.0% (2026) · steady
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).
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
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
Quality Score76 · Top 25%
Fair Value upside+51% · Above median
Profitability
Return on equity (TTM)48% · Top 25%
Return on assets24% · Top 25%
Net margin (TTM)18% · Top 25%
Operating margin (TTM)24% · Top 25%
Growth and dividend
Revenue growth14% · Above median
Dividend yield (TTM)2.9% · Above median
Balance sheet
Debt / equity0.00× · Below median
Valuation Multiples vs Information Technology Services median · lower = cheaper
P/E (TTM)16.0× · Cheaper than median
P/B7.37× · Priciest 25%
P/S (TTM)2.87× · Priciest 25%
P/FCF0.2× · Cheapest 25%
EV/EBITDA10.9× · Pricier than median
PEG2.85× · Priciest 25%
What the price implies (reverse DCF)
The inverse question: what free-cash-flow growth must Tata Consultancy Services Limited deliver for ten years so that today's price is fair in our DCF model? Same formula, same discount rate as the fair value.
Implied FCF growth, 10 years+4.8 % per year
Achieved revenue growth, 5 years+10.2 % p.a.
Sector median revenue growth+8.3 %
FCF yield on price6.33 %
Discount rate (WACC) in the models10.4 %
The price demands less growth than the company recently delivered: even a weaker business would justify the price. Ranking of the largest stocks →
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.
This stockSector peers
VALUE100· sector 35
FUTURE70· sector 31
PAST100· sector 34
HEALTH100· sector 97
DIVIDEND58· sector 35
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).
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 ₹2,204, about +58% 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: ₹2,204.
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 price target for Tata Consultancy Services Limited (TCS)?
Our model-based price target is the fair value of ₹3,473 (as of Aug 22, 2026) from 26 valuation models. Cautious scenario ₹1,971, optimistic scenario ₹4,490. It is a calculation from audited fundamentals, not an analyst target.
What is the Tata Consultancy Services Limited stock forecast for 2026?
Our models put fair value at ₹3,473, about +58% upside versus a price of ₹2,204 (undervalued). Cautious scenario ₹1,971, optimistic scenario ₹4,490. The calculation is refreshed regularly with new filings.
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 2.95% relative to its recent price (as of Aug 22, 2026).
What growth is priced into Tata Consultancy Services Limited (TCS)?
For today's price to be fair in a discounted-cash-flow model, Tata Consultancy Services Limited would have to grow free cash flow by +4.8 % per year for ten years (discount rate 10.4 %, then 2 % perpetual growth). Over the last 5 years revenue grew +10.2 % per year. As of Aug 22, 2026.
What discount rate (WACC) does the fair value of TCS use?
Our models discount Tata Consultancy Services Limited at 10.4 %: a base by market capitalisation (large), damped by beta 0.24, country premium for India. The same rate applies in all 26 models.
What is the intrinsic value of Tata Consultancy Services Limited (TCS)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Tata Consultancy Services Limited it is ₹3,473 per share (as of Aug 22, 2026), against a price of ₹2,204. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Tata Consultancy Services Limited stock overvalued or undervalued in 2026?
As of Aug 22, 2026, TCS trades below its calculated fair value: price ₹2,204, fair value ₹3,473, a gap of about +58% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of TCS?
No. The price is what the market pays today (₹2,204); the fair value is what the company's own numbers justify (₹3,473). For Tata Consultancy Services Limited the two are ₹1,269 per share apart. That gap is exactly why we show both numbers side by side.
How much is Tata Consultancy Services Limited worth?
The market values Tata Consultancy Services Limited at about ₹8.0T (market capitalisation, as of Aug 22, 2026). Per share that is ₹2,204; our models calculate a fair value of ₹3,473 per share.
What do the bullish and bearish scenarios say about TCS?
Our models span a range for Tata Consultancy Services Limited: cautious scenario ₹1,971, base ₹3,473, optimistic ₹4,490 per share (as of Aug 22, 2026, price ₹2,204). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of TCS?
Tata Consultancy Services Limited trades at a price-to-earnings ratio of 16.0 (as of Aug 22, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹3,473 is built from several models across several years. Other multiples: PEG 2.9, P/B 7.4, P/S 2.9, EV/EBITDA 10.9.
What is the PEG ratio of TCS?
The PEG ratio of Tata Consultancy Services Limited is 2.85 (P/E divided by earnings growth, as of Aug 22, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Tata Consultancy Services Limited (TCS)?
Balance-sheet figures for Tata Consultancy Services Limited (as of Aug 22, 2026): return on equity 47.7%, debt of 0.00 per unit of equity. They feed the Quality Score of 76/100, which measures business quality independently of the share price.
How far is TCS from its 52-week high?
Tata Consultancy Services Limited trades at ₹2,204, about 35% below its 52-week high of ₹3,404 and 1% above the low of ₹2,177 (as of Aug 22, 2026). Distance from the high says nothing about value: that is what the fair value of ₹3,473 is for.
Which stocks are comparable to Tata Consultancy Services Limited?
From the same area (Technology) we also value International Business Machines Corporation, Accenture plc, Infosys Limited, HCL Technologies Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Tata Consultancy Services Limited stock attractive at the current price?
The data as of Aug 22, 2026: price ₹2,204, calculated fair value ₹3,473 (+58%), Quality Score 76/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of TCS calculated?
We run Tata Consultancy Services Limited through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹3,473, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 32.6 % above its aggregate fair value. Tata Consultancy Services Limited currently trades 58 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on <a href="/is-it-worth-investing-now/">is it worth investing now</a>.
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