Tata Consultancy Services Limited

BSE:532540 Stock Report

Market Cap: ₹15.1t

Tata Consultancy Services Valuation

Is 532540 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 532540 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 532540 (₹4168.05) is trading above our estimate of fair value (₹1690.73)

Significantly Below Fair Value: 532540 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 532540?

Key metric: As 532540 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 532540. This is calculated by dividing 532540's market cap by their current earnings.
What is 532540's PE Ratio?
PE Ratio31.8x
Earnings₹474.41b
Market Cap₹15.09t

Price to Earnings Ratio vs Peers

How does 532540's PE Ratio compare to its peers?

The above table shows the PE ratio for 532540 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33x
INFY Infosys
29x8.1%₹8.0t
HCLTECH HCL Technologies
30.4x9.0%₹5.2t
507685 Wipro
27.2x8.1%₹3.2t
TECHM Tech Mahindra
45.6x24.9%₹1.5t
532540 Tata Consultancy Services
31.8x10.2%₹15.1t

Price-To-Earnings vs Peers: 532540 is good value based on its Price-To-Earnings Ratio (31.8x) compared to the peer average (33x).

Price to Earnings Ratio vs Industry

How does 532540's PE Ratio compare vs other companies in the IN IT Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GTL GTL
1.2xn/aUS$23.46m
517429 Athena Global Technologies
0.7xn/aUS$16.97m
509040 Netlink Solutions (India)
3.6xn/aUS$5.67m
512341 CES
0.05xn/aUS$130.33k
No more companies available in this PE range
532540 31.8xIndustry Avg. 36.7xNo. of Companies14PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 532540 is good value based on its Price-To-Earnings Ratio (31.8x) compared to the Indian IT industry average (36.7x).

Price to Earnings Ratio vs Fair Ratio

What is 532540's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

532540 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.8x
Fair PE Ratio61.1x

Price-To-Earnings vs Fair Ratio: 532540 is good value based on its Price-To-Earnings Ratio (31.8x) compared to the estimated Fair Price-To-Earnings Ratio (61.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 532540 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹4,168.05
₹4,517.14
+8.4%
10.9%₹5,710.00₹3,050.00n/a44
Dec ’25₹4,273.55
₹4,508.05
+5.5%
11.1%₹5,710.00₹3,050.00n/a44
Nov ’25₹3,985.40
₹4,515.36
+13.3%
11.1%₹5,710.00₹3,050.00n/a44
Oct ’25₹4,286.30
₹4,440.84
+3.6%
11.3%₹5,730.00₹3,050.00n/a44
Sep ’25₹4,551.85
₹4,335.00
-4.8%
10.6%₹5,740.00₹3,050.00n/a44
Aug ’25₹4,395.75
₹4,301.89
-2.1%
9.0%₹4,821.00₹3,050.00n/a45
Jul ’25₹3,973.40
₹4,217.19
+6.1%
8.9%₹4,750.00₹3,050.00n/a43
Jun ’25₹3,669.50
₹4,197.70
+14.4%
9.9%₹4,787.00₹3,040.00n/a44
May ’25₹3,822.60
₹4,199.36
+9.9%
9.8%₹4,787.00₹3,040.00n/a44
Apr ’25₹3,915.25
₹4,059.07
+3.7%
10.4%₹4,750.00₹2,960.00n/a41
Mar ’25₹4,096.30
₹4,003.29
-2.3%
9.5%₹4,700.00₹2,960.00n/a41
Feb ’25₹3,851.45
₹3,936.80
+2.2%
9.2%₹4,575.00₹2,960.00n/a41
Jan ’25₹3,810.60
₹3,724.72
-2.3%
9.6%₹4,422.00₹2,900.00n/a39
Dec ’24₹3,509.60
₹3,685.82
+5.0%
9.3%₹4,210.00₹2,900.00₹4,273.5539
Nov ’24₹3,332.55
₹3,689.41
+10.7%
9.4%₹4,210.00₹2,900.00₹3,985.4039
Oct ’24₹3,530.75
₹3,587.78
+1.6%
10.0%₹4,220.00₹2,650.00₹4,286.3040
Sep ’24₹3,379.20
₹3,497.61
+3.5%
10.3%₹4,450.00₹2,650.00₹4,551.8541
Aug ’24₹3,450.85
₹3,474.12
+0.7%
10.1%₹4,450.00₹2,650.00₹4,395.7542
Jul ’24₹3,300.50
₹3,460.28
+4.8%
10.3%₹4,450.00₹2,700.00₹3,973.4040
Jun ’24₹3,323.30
₹3,457.74
+4.0%
10.6%₹4,490.00₹2,700.00₹3,669.5039
May ’24₹3,216.00
₹3,462.18
+7.7%
10.4%₹4,490.00₹2,700.00₹3,822.6040
Apr ’24₹3,205.80
₹3,490.01
+8.9%
10.4%₹4,510.00₹2,840.00₹3,915.2540
Mar ’24₹3,385.85
₹3,487.18
+3.0%
10.5%₹4,530.00₹2,840.00₹4,096.3040
Feb ’24₹3,407.65
₹3,485.01
+2.3%
10.0%₹4,530.00₹2,840.00₹3,851.4543
Jan ’24₹3,259.25
₹3,401.20
+4.4%
11.4%₹4,530.00₹2,840.00₹3,810.6040
Dec ’23₹3,475.10
₹3,394.95
-2.3%
11.6%₹4,530.00₹2,620.00₹3,509.6040

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/21 07:33
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Tata Consultancy Services Limited is covered by 86 analysts. 45 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Niral DalalAlmondz Global Securities Ltd
Ashwin MehtaAmbit Capital
Mohit JainAnand Rathi Shares and Stock Brokers Limited