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transcosmos inc. (TRCLF) Fair Value & Analysis

Technology · US · Market cap $764M

TI transcosmos inc. logo transcosmos inc. TRCLF · US
Price$20.39
Fair Value$42.87
Upside+110.3%
Quality68/100
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Healthy Growth
Thin margins · 3.3% net margin
Low debt · generates free cash flow
2.02% dividend yield
Ranks above peers (8/11)
Narrow moat 39/100
Evidence: Medium Range $32.15 – $53.58 Share as image

Fair value as of: Jul 24, 2026

From 24 valuation models · updated 17 days ago

Fair value updated Jul 24, 2026, revised from $43.57 to $42.87 (−1.6%) since Jun 25, 2026.

A solid business, screening 110% undervalued on our models.

What matters now

  • The price is below even our cautious bear case ($32.15). The market is more pessimistic than our downside scenario.
  • Solid quality (68/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

$25.77 $15.43 Fair Value $42.87 Aug 2015 Jul 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 24, 2026.

How to read this chart

60‑month range $15.43 – $25.77 · fair‑value band $32.15 – $53.58 · the $20.39 price screens below the $42.87 fair value. Dashed = 300-day average. As of Jul 24, 2026.

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Analysis

transcosmos inc. (TRCLF) currently trades at $20.39, while our model-based Fair Value estimate is $42.87, implying the stock looks roughly 110.3% undervalued today. The Quality Score stands at 68/100 (solid 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: medium), always confirm before acting.

Over the trailing twelve months, transcosmos inc. generated revenue of $394B at a net margin of 3.3%. Revenue grew 5.2% year over year. It earns a return on equity of 10.4%. The balance sheet holds a net cash position of $66.4B. Fundamentals as of Jul 24, 2026

Our scenario range runs from $32.15 (bear case) to $53.58 (bull case); at $20.39, the current price sits below 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 near its 52-week high, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -25% fair-value upside, at 110%, TRCLF 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 $39.49 $49.19 $61.12 80
Rev-Margin DCF $37.31 $50.31 $65.02 74
ROIC Compounder $29.14 $32.42 $35.91 72
All 24 models by family
DCF Models
FCF DCF $39.24 $50.27 $64.67 38
Owner Earnings $36.18 $45.94 $58.67 31
5Y Revenue Exit $37.31 $50.08 $66.04 39
5Y EBITDA Exit $42.05 $58.81 $77.99 41
5Y P/E Exit $40.37 $55.72 $71.49 38
10Y Revenue Exit $37.21 $48.29 $62.55 36
10Y EBITDA Exit $40.57 $53.78 $70.76 37
10Y P/E Exit $39.60 $51.84 $66.29 35
Earnings-Based
Graham-Dodd $14.58 $42.21 $55.72 54
Lynch FV $8.73 $12.48 $16.22 50
PEG = 1.0 $8.73 $12.48 $16.22 46
EPV $28.35 $30.47 $32.23 59
Multiples
P/E Multiple $32.15 $42.87 $53.59 63
P/S Multiple $27.33 $36.44 $45.55 58
P/B Multiple $27.33 $36.44 $45.55 55
EV/EBIT $49.25 $61.40 $73.54 53
EV/EBITDA $48.16 $59.94 $71.73 54
EV/Revenue $37.38 $47.90 $58.43 43
Asset-Based
NCAV (Graham) $10.51 $14.08 $21.02 50
Growth DCF
Growth DCF $39.49 $49.19 $61.12 80
Rev-Margin DCF $37.31 $50.31 $65.02 74
Economic Profit
Residual Income $17.45 $19.01 $23.58 61
ROIC Compounder $29.14 $32.42 $35.91 72
Growth Earnings
Growth-Adj P/E $26.07 $37.24 $48.42 68

Widest divergence: DCF Models ($50.27) versus Earnings-Based ($12.48). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $394B
Revenue growth (YoY) +5.2%
Net margin 3.3%
Return on equity 10.4%
Free cash flow $17.6B FY2026
P/E ratio 9.8
More key figures
Operating margin 3.1%
EPS (TTM) $2.09
Dividend yield 2.0%
EPS growth (YoY) -29.1%
Net cash $66.4B FY2026

Figures from reported company fundamentals · as of Jul 24, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 68/100

Of which business quality 69 · Market factors (momentum, volatility) 56

Profitability 55
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 54
Earnings quality: real cash, not paper profit
Fin. Strength 96
Balance sheet, leverage, solvency risk
Investment 79
Disciplined investing over empire-building
Low Volatility 100
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 33
Distance to the 52-week high (market factor)
Net Issuance 91
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

transcosmos inc. provides business outsourcing services in Japan and internationally. The company offers business processing outsourcing services, such as selling, SCM, finance, and documentation; accounting, procurement, and human resource; construction support housing and housing equipment design; machine designing, built-in development, and back-office …

Full company description

transcosmos inc. provides business outsourcing services in Japan and internationally. The company offers business processing outsourcing services, such as selling, SCM, finance, and documentation; accounting, procurement, and human resource; construction support housing and housing equipment design; machine designing, built-in development, and back-office for design and production; support desk, system operation and maintenance, IoT, and multi-device lifecycle; and offshore services. It also provides contact center, customer care, sales support, industry specific call center, contact center technologies, and analytics services. In addition, the company offers digital marketing services that make use of Internet promotions, digital integration, integrated marketing, channel-integrated communication, marketing tool support, and social media services. Further, it provides e-commerce services, including various functions required for e-commerce, such as e-commerce consulting services, website launch services, service network, online merges with offline, marketing and CRM services, fulfillment services, and one-stop services. Additionally, the company offers analytics services, including customer research, big data analytics, direct marketing consulting, customer support consulting, and market research and analytics; and other DEC integrated marketing services. transcosmos inc. was founded in 1966 and is based in Tokyo, Japan.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

transcosmos inc. reported revenue of $396B in FY2026 versus $354B in FY2022, a compound +2.9%/yr. Reported net income was $13.2B in FY2026, compounding −11.5%/yr from FY2022.

Growth Quality 62/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
$396B
Latest YoY
+5.5%
Avg. growth/yr (3Y)
+2.0%
Avg. growth/yr (5Y)
+3.3%
Avg. growth/yr (21Y)
+7.2%
Revenue +2.9%/yr
FY22 $354B
FY23 $374B
FY24 $362B
FY25 $376B
FY26 $396B
Net income −11.5%/yr
FY22 $21.5B
FY23 $15.8B
FY24 $10.1B
FY25 $11.3B
FY26 $13.2B

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Cite: Fair Value Calculator (2026). "transcosmos inc. Fair Value". https://www.fairvalue-calculator.com/stock/TRCLF

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 68 · Top 25%
Fair Value upside +110% · Top 25%
Return on equity (TTM) 10% · Above median
Return on assets 5% · Above median
Net margin (TTM) 3% · Below median
Operating margin (TTM) 3% · Below median
Revenue growth 5% · Below median
Dividend yield (TTM) 2.0% · Above median
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/E (TTM) 9.8× · Cheaper than 75% of peers
P/FCF 0.0× · Cheaper 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 100 · sector 20
FUTURE 26 · sector 29
PAST 42 · sector 36
HEALTH 99 · sector 97
DIVIDEND 40 · 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 24, 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 transcosmos inc. (TRCLF) overvalued or undervalued?
As of Jul 24, 2026, our model estimates a fair value of $42.87 versus a price of $20.39, about +110% (undervalued).
What is the fair value of TRCLF?
Our model-based fair value for transcosmos inc. is $42.87 (as of Jul 24, 2026), built from audited fundamentals. The current price is $20.39.
What is the quality score of TRCLF?
transcosmos inc. has a Quality Score of 68/100. 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 transcosmos inc. (TRCLF)?
transcosmos inc. reported trailing-twelve-month revenue of about $394B (latest available figure, as of Jul 24, 2026).
What is the net profit margin of TRCLF?
The net profit margin of transcosmos inc. is about 3.3%, meaning it keeps roughly 3.3% of revenue as net income. Based on the latest reported figures.
Does transcosmos inc. pay a dividend?
transcosmos inc. currently shows a dividend yield of about 2.02% relative to its recent price (as of Jul 24, 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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