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Tata Consultancy Services

NSEI:TCS
Snowflake Description

Flawless balance sheet with solid track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TCS
NSEI
₹7,561B
Market Cap
  1. Home
  2. IN
  3. Software
Company description

Tata Consultancy Services Limited provides information technology (IT) and IT enabled services worldwide. The last earnings update was 63 days ago. More info.


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TCS Share Price and Events
7 Day Returns
-1.2%
NSEI:TCS
2.1%
IN IT
0.5%
IN Market
1 Year Returns
43%
NSEI:TCS
27.1%
IN IT
2.7%
IN Market
TCS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Tata Consultancy Services (TCS) -1.2% 5.2% 6.3% 43% 62.9% 91.7%
IN IT 2.1% 2.7% 8.6% 27.1% 42.4% 76.1%
IN Market 0.5% 9.2% 3.4% 2.7% 43.6% 79%
1 Year Return vs Industry and Market
  • TCS outperformed the IT industry which returned 27.1% over the past year.
  • TCS outperformed the Market in India which returned 2.7% over the past year.
Price Volatility
TCS
Industry
5yr Volatility vs Market
Related Companies

TCS Value

 Is Tata Consultancy Services undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Tata Consultancy Services to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Tata Consultancy Services.

NSEI:TCS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 36 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 16.5%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:TCS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.056 (1 + (1- 35%) (0.01%))
1.038
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.04
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.038 * 8.6%)
16.47%

Discounted Cash Flow Calculation for NSEI:TCS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Tata Consultancy Services is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:TCS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 16.47%)
2019 264,901.30 Analyst x23 227,433.36
2020 301,979.26 Analyst x23 222,595.96
2021 333,837.84 Analyst x22 211,273.87
2022 364,833.24 Est @ 9.28% 198,232.43
2023 396,807.95 Est @ 8.76% 185,110.37
2024 430,139.57 Est @ 8.4% 172,278.01
2025 465,174.25 Est @ 8.14% 159,958.09
2026 502,232.22 Est @ 7.97% 148,274.06
2027 541,614.90 Est @ 7.84% 137,284.43
2028 583,612.10 Est @ 7.75% 127,006.24
Present value of next 10 years cash flows ₹1,789,446.81
NSEI:TCS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹583,612.10 × (1 + 7.55%) ÷ (16.47% – 7.55%)
₹7,033,361.80
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹7,033,361.80 ÷ (1 + 16.47%)10
₹1,530,607.08
NSEI:TCS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹1,789,446.81 + ₹1,530,607.08
₹3,320,053.90
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹3,320,053.90 / 3,752.38
₹884.79
NSEI:TCS Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹884.79
Current discount Discount to share price of ₹2,015.05
= -1 x (₹2,015.05 - ₹884.79) / ₹884.79
-127.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Tata Consultancy Services is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Tata Consultancy Services's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Tata Consultancy Services's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:TCS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹79.42
NSEI:TCS Share Price ** NSEI (2019-03-20) in INR ₹2015.05
India IT Industry PE Ratio Median Figure of 84 Publicly-Listed IT Companies 15.98x
India Market PE Ratio Median Figure of 2,730 Publicly-Listed Companies 16.4x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Tata Consultancy Services.

NSEI:TCS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:TCS Share Price ÷ EPS (both in INR)

= 2015.05 ÷ 79.42

25.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tata Consultancy Services is overvalued based on earnings compared to the IN IT industry average.
  • Tata Consultancy Services is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Tata Consultancy Services's expected growth come at a high price?
Raw Data
NSEI:TCS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 25.37x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 36 Analysts
10.5%per year
India IT Industry PEG Ratio Median Figure of 22 Publicly-Listed IT Companies 1.38x
India Market PEG Ratio Median Figure of 595 Publicly-Listed Companies 1.27x

*Line of best fit is calculated by linear regression .

NSEI:TCS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 25.37x ÷ 10.5%

2.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tata Consultancy Services is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Tata Consultancy Services's assets?
Raw Data
NSEI:TCS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹227.38
NSEI:TCS Share Price * NSEI (2019-03-20) in INR ₹2015.05
India IT Industry PB Ratio Median Figure of 109 Publicly-Listed IT Companies 1.35x
India Market PB Ratio Median Figure of 3,617 Publicly-Listed Companies 1.12x
NSEI:TCS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:TCS Share Price ÷ Book Value per Share (both in INR)

= 2015.05 ÷ 227.38

8.86x

* Primary Listing of Tata Consultancy Services.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tata Consultancy Services is overvalued based on assets compared to the IN IT industry average.
X
Value checks
We assess Tata Consultancy Services's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Tata Consultancy Services has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TCS Future Performance

 How is Tata Consultancy Services expected to perform in the next 1 to 3 years based on estimates from 36 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Tata Consultancy Services expected to grow at an attractive rate?
  • Tata Consultancy Services's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Tata Consultancy Services's earnings growth is positive but not above the India market average.
  • Tata Consultancy Services's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:TCS Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:TCS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 36 Analysts 10.5%
NSEI:TCS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 36 Analysts 10.6%
India IT Industry Earnings Growth Rate Market Cap Weighted Average 10.4%
India IT Industry Revenue Growth Rate Market Cap Weighted Average 10.1%
India Market Earnings Growth Rate Market Cap Weighted Average 18.5%
India Market Revenue Growth Rate Market Cap Weighted Average 11.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:TCS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 36 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:TCS Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 1,797,066 363,635 386,367 31
2020-03-31 1,628,748 329,455 348,990 36
2019-03-31 1,464,501 282,840 315,200 36
NSEI:TCS Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 1,405,280 289,570 302,500
2018-09-30 1,340,940 278,670 286,760
2018-06-30 1,277,810 262,230 272,210
2018-03-31 1,231,040 250,670 258,260
2017-12-31 1,206,710 267,010 255,300
2017-09-30 1,195,020 247,530 257,770
2017-06-30 1,182,450 250,390 259,170
2017-03-31 1,179,660 252,230 262,890
2016-12-31 1,167,730 231,990 260,210
2016-09-30 1,144,020 215,710 253,530
2016-06-30 1,122,830 218,470 248,400
2016-03-31 1,086,460 191,090 242,700

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Tata Consultancy Services's earnings are expected to grow by 10.5% yearly, however this is not considered high growth (20% yearly).
  • Tata Consultancy Services's revenue is expected to grow by 10.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:TCS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 36 Analyst Estimates (S&P Global) See Below

All data from Tata Consultancy Services Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:TCS Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 102.29 117.60 91.50 28.00
2020-03-31 92.52 103.30 86.00 33.00
2019-03-31 83.30 86.45 80.90 34.00
NSEI:TCS Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 79.42
2018-09-30 74.92
2018-06-30 71.10
2018-03-31 67.09
2017-12-31 65.85
2017-09-30 66.01
2017-06-30 65.89
2017-03-31 66.71
2016-12-31 66.03
2016-09-30 64.33
2016-06-30 63.03
2016-03-31 61.59

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Tata Consultancy Services is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Tata Consultancy Services's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Tata Consultancy Services has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TCS Past Performance

  How has Tata Consultancy Services performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Tata Consultancy Services's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Tata Consultancy Services's year on year earnings growth rate has been positive over the past 5 years.
  • Tata Consultancy Services's 1-year earnings growth exceeds its 5-year average (18.5% vs 8.7%)
  • Tata Consultancy Services's earnings growth has not exceeded the IN IT industry average in the past year (18.5% vs 24.5%).
Earnings and Revenue History
Tata Consultancy Services's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Tata Consultancy Services Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:TCS Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,405,280.00 302,500.00 55,500.00
2018-09-30 1,340,940.00 286,760.00 41,370.00
2018-06-30 1,277,810.00 272,210.00 39,380.00
2018-03-31 1,231,040.00 258,260.00 39,380.00
2017-12-31 1,206,710.00 255,300.00 195,950.00
2017-09-30 1,195,020.00 257,770.00 56,200.00
2017-06-30 1,182,450.00 259,170.00 36,850.00
2017-03-31 1,179,660.00 262,890.00 36,850.00
2016-12-31 1,167,730.00 260,210.00
2016-09-30 1,144,020.00 253,530.00
2016-06-30 1,122,830.00 248,400.00
2016-03-31 1,086,460.00 242,700.00
2015-12-31 1,044,167.60 216,426.70 4,252.50
2015-09-30 1,015,539.00 208,602.20 8,320.60
2015-06-30 981,716.10 200,315.00 2,296.10
2015-03-31 946,484.10 198,521.80 15,849.90
2014-12-31 919,797.40 214,634.70 24,784.40
2014-09-30 887,725.60 214,693.50 33,795.90
2014-06-30 859,670.90 208,584.00 52,623.40
2014-03-31 818,093.60 191,302.20 50,891.20
2013-12-31 766,883.60 173,996.70 48,393.50
2013-09-30 714,643.30 156,158.60 45,434.80
2013-06-30 661,078.40 144,169.00 43,303.70
2013-03-31 629,894.80 138,950.80 42,064.10
2012-12-31 598,187.20 131,710.30 40,445.60
2012-09-30 569,527.80 124,241.90 39,102.70
2012-06-30 529,655.20 112,908.40 36,536.60
2012-03-31 488,938.30 103,879.20 33,715.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Tata Consultancy Services has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Tata Consultancy Services used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
  • Tata Consultancy Services has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Tata Consultancy Services's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Tata Consultancy Services has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TCS Health

 How is Tata Consultancy Services's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Tata Consultancy Services's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Tata Consultancy Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Tata Consultancy Services's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Tata Consultancy Services's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1351.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Tata Consultancy Services Company Filings, last reported 2 months ago.

NSEI:TCS Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 857,520.00 630.00 452,840.00
2018-09-30 765,690.00 630.00 338,340.00
2018-06-30 860,770.00 650.00 383,810.00
2018-03-31 855,300.00 2,470.00 426,390.00
2017-12-31 798,440.00 760.00 365,650.00
2017-09-30 754,120.00 790.00 330,270.00
2017-06-30 705,680.00 830.00 315,610.00
2017-03-31 865,800.00 2,890.00 452,030.00
2016-12-31 820,960.00 2,550.00 388,690.00
2016-09-30 767,430.00 970.00 322,900.00
2016-06-30 715,160.00 1,110.00 271,530.00
2016-03-31 714,270.00 2,450.00 288,570.00
2015-12-31 657,042.40 1,780.70 253,955.90
2015-09-30 607,626.80 1,501.30 211,909.40
2015-06-30 561,669.80 3,962.80 234,113.00
2015-03-31 517,625.20 3,577.00 200,486.40
2014-12-31 539,398.70 3,371.40 156,677.70
2014-09-30 495,410.30 2,657.00 125,363.20
2014-06-30 450,844.70 2,022.50 209,354.60
2014-03-31 499,027.50 2,968.70 156,003.10
2013-12-31 493,619.20 1,588.00 120,721.00
2013-09-30 447,203.30 2,205.40 63,321.20
2013-06-30 425,409.80 3,204.80 92,192.60
2013-03-31 393,410.40 2,322.70 76,982.00
2012-12-31 388,194.90 5,121.40 75,404.00
2012-09-30 357,927.00 3,027.80 79,218.50
2012-06-30 329,702.60 2,101.60 95,647.50
2012-03-31 301,380.00 1,265.50 65,888.50
  • Tata Consultancy Services's level of debt (0.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (0.3% vs 0.1% today).
  • Debt is well covered by operating cash flow (45963.5%, greater than 20% of total debt).
  • Tata Consultancy Services earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Tata Consultancy Services's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Tata Consultancy Services has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TCS Dividends

 What is Tata Consultancy Services's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.24%
Current annual income from Tata Consultancy Services dividends. Estimated to be 2.13% next year.
If you bought ₹2,000 of Tata Consultancy Services shares you are expected to receive ₹25 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Tata Consultancy Services's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.5%).
  • Tata Consultancy Services's dividend is below the markets top 25% of dividend payers in India (1.92%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:TCS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 36 Analyst Estimates (S&P Global) See Below
India IT Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 1.5%
India Market Average Dividend Yield Market Cap Weighted Average of 1399 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:TCS Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 51.74 28.00
2020-03-31 46.40 33.00
2019-03-31 30.68 29.00
NSEI:TCS Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-05-21 25.000 1.286
2017-05-25 23.500 1.737
2017-04-18 23.500 1.976
2016-04-18 21.750 1.797
2015-06-08 19.500 1.585
2015-04-21 19.500 1.538
2015-04-16 19.500 1.575
2014-05-21 16.000 1.279
2014-04-16 16.000 1.470
2013-04-17 11.000 1.180
2012-10-19 6.000 0.875
2012-07-12 6.000 0.931
2012-05-28 8.500 1.366
2012-04-23 8.500 1.396
2012-01-17 6.000 1.031
2011-10-17 6.000 1.065
2011-07-14 1.500 0.288
2011-05-20 7.000 1.212
2011-04-21 7.000 1.215
2011-01-18 4.000 0.701
2010-05-24 5.000 1.093
2010-04-19 5.000 1.314
2009-10-16 4.000 1.101
2009-07-17 4.000 1.481
2009-04-20 3.500 2.007
2009-03-23 3.000 2.142

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Tata Consultancy Services's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Tata Consultancy Services's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Tata Consultancy Services afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Tata Consultancy Services has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TCS Management

 What is the CEO of Tata Consultancy Services's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rajesh Gopinathan
COMPENSATION ₹124,920,000
AGE 47
TENURE AS CEO 2.1 years
CEO Bio

Mr. Rajesh Gopinathan, PGDM has been the Chief Executive Officer, Managing Director and Executive Director at Tata Consultancy Services Limited since February 21, 2017. Mr. Gopinathan served as the Chief Financial Officer of Tata Consultancy Services Limited since February 10, 2013 until February 21, 2017 and served as its Vice President. He served as Deputy Chief Financial Officer at Tata Consultancy Services Limited from October 19, 2012 to February 2013. Mr. Gopinathan has over 11 years of experience and was previously employed at Tata Industries Ltd. He serves as Chairman of the Board at Tata Consultancy Services Japan, Limited. In 2014 Mr. Gopinathan was awarded the “Young Alumni Achiever's Award” under “Corporate Leader” category from IIM, Ahmedabad. He is an Electrical and electronic engineer from REC Trichy (now NIT, Trichy), Rajesh graduated in 1994 and his Post-Graduate Diploma in Management from IIM, Ahmedabad.

CEO Compensation
  • Rajesh's compensation has increased by more than 20% in the past year.
  • Rajesh's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Tata Consultancy Services management team in years:

2.1
Average Tenure
59
Average Age
  • The tenure for the Tata Consultancy Services management team is about average.
Management Team

Rajesh Gopinathan

TITLE
CEO, MD & Executive Director
COMPENSATION
₹125M
AGE
47
TENURE
2.1 yrs

Ramki Ramakrishnan

TITLE
Chief Financial Officer
COMPENSATION
₹34M
AGE
60
TENURE
2.1 yrs

NGS Subramaniam

TITLE
COO & Executive Director
COMPENSATION
₹93M
AGE
59
TENURE
2.1 yrs

Rajendra Moholkar

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹12M
AGE
59
TENURE
1.9 yrs

K. Krishnan

TITLE
Chief Technology Officer
AGE
55

Kamal Bhadada

TITLE
Head of Communication

Kedar Shirali

TITLE
Head of Global Investor Relations

Vish Iyer

TITLE
Global Head Legal & Corporate Affairs
AGE
65

Vivek Padiyar

TITLE
Head of Corporate Communications

Ravi P. Viswanathan

TITLE
Chief Marketing Officer
AGE
56
TENURE
1.7 yrs
Board of Directors Tenure

Average tenure and age of the Tata Consultancy Services board of directors in years:

2.1
Average Tenure
60
Average Age
  • The average tenure for the Tata Consultancy Services board of directors is less than 3 years, this suggests a new board.
Board of Directors

Natarajan Chandrasekaran

TITLE
Non-Independent Non-Executive Chairman
COMPENSATION
₹300K
AGE
55
TENURE
2.1 yrs

Rajesh Gopinathan

TITLE
CEO, MD & Executive Director
COMPENSATION
₹125M
AGE
47
TENURE
2.1 yrs

NGS Subramaniam

TITLE
COO & Executive Director
COMPENSATION
₹93M
AGE
59
TENURE
2.1 yrs

Aman Mehta

TITLE
Independent Non-Executive Director
COMPENSATION
₹30M
AGE
72
TENURE
14.8 yrs

Om Bhatt

TITLE
Independent Non-Executive Director
COMPENSATION
₹21M
AGE
67
TENURE
6.9 yrs

Ron Sommer

TITLE
Independent Non-Executive Director
COMPENSATION
₹21M
AGE
69
TENURE
12.5 yrs

Aarthi Subramanian

TITLE
Non-Executive Director
COMPENSATION
₹23M
AGE
51
TENURE
4 yrs

Pradeep Khosla

TITLE
Additional Independent Non-Executive Director
COMPENSATION
₹3M
AGE
61
TENURE
1.2 yrs

Hanne Birgitte Sorensen

TITLE
Independent Director
AGE
53
TENURE
0.3 yrs

Keki M. Mistry

TITLE
Independent Director
AGE
64
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
29. Nov 18 Buy Milind Lakkad Individual 26. Nov 18 27. Nov 18 3,730 ₹1,884.62 ₹6,991,986
05. Sep 18 Buy Damodar Padhi Individual 30. Aug 18 30. Aug 18 1,000 ₹2,067.99 ₹2,067,630
X
Management checks
We assess Tata Consultancy Services's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Tata Consultancy Services has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TCS News

Simply Wall St News

Can Tata Consultancy Services Limited (NSE:TCS) Maintain Its Strong Returns?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand Tata Consultancy Services Limited (NSE:TCS). … Our data shows Tata Consultancy Services has a return on equity of 38% for the last year.

Simply Wall St -

What Do You Get For Owning Tata Consultancy Services Limited (NSE:TCS)?

and want to begin learning the link between Tata Consultancy Services Limited (NSE:TCS)’s return fundamentals and stock market performance. … Purchasing Tata Consultancy Services gives you an ownership stake in the company. … Thus, to understand how your money can grow by investing in Tata Consultancy Services, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Has Tata Consultancy Services Limited (NSE:TCS) Improved Earnings Growth In Recent Times?

In this article, I will take a look at Tata Consultancy Services Limited's (NSE:TCS) most recent earnings update (30 September 2018) and compare these latest figures against its performance over the past few years, along with how the rest of TCS's industry performed. … Did TCS's recent earnings growth beat the long-term trend and the industry. … TCS's trailing twelve-month earnings (from 30 September 2018) of ₹286.8b has.

Simply Wall St -

Should You Expect Tata Consultancy Services Limited (NSE:TCS) To Continue Delivering An ROE Of 38%?

By way of learning-by-doing, we'll look at ROE to gain a better understanding Tata Consultancy Services Limited (NSE:TCS). … Over the last twelve months Tata Consultancy Services has recorded a ROE of 38%. … That means that for every ₹1 worth of shareholders' equity, it generated ₹0.38 in profit.

Simply Wall St -

What Should You Know About Tata Consultancy Services Limited's (NSE:TCS) Capital Returns?

and want a simplistic look at the return on Tata Consultancy Services Limited (NSE:TCS) stock. … As a result, your investment is being put to work to fund operations and if you want to earn an attractive return on your investment, the business needs to be making an adequate amount of money from the funds you provide … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock.

Simply Wall St -

How Has Tata Consultancy Services Limited's (NSE:TCS) Earnings Fared Against The Long Term Trend

When Tata Consultancy Services Limited's (NSE:TCS) announced its latest earnings (31 March 2018), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were Tata Consultancy Services's average earnings over the past couple of years, and its industry performance. … TCS's trailing twelve-month earnings (from 31 March 2018) of ₹258.26b has

Simply Wall St -

Tata Consultancy Services Limited (NSE:TCS): Is Growth Priced In?

Tata Consultancy Services Limited (NSE:TCS) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of ₹1874.05 is based on unrealistic expectations. … See our latest analysis for Tata Consultancy Services? … Investors in Tata Consultancy Services have been patiently waiting for the uptick in earnings.

Simply Wall St -

What is Behind Tata Consultancy Services Limited's (NSE:TCS) Superior ROE?

and want a simplistic look at the return on Tata Consultancy Services Limited (NSE:TCS) stock. … With an ROE of 30.26%, Tata Consultancy Services Limited (NSE:TCS) outpaced its own industry which delivered a less exciting 13.08% over the past year. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden

Simply Wall St -

Is It Time To Sell Tata Consultancy Services Limited (NSE:TCS) Based Off Its PE Ratio?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to begin learning the link between Tata Consultancy Services Limited (NSE:TCS)’s fundamentals and stock market performance. … Tata Consultancy Services Limited (NSE:TCS) is currently trading at a trailing P/E of 27.7x, which is higher than the industry average of 17.3x.

Simply Wall St -

How Can You Be More Confident In Tata Consultancy Services Limited's (NSE:TCS) Value Compared To The Industry?

TCS's relatively high trailing PE outpaces the IN IT industry, at 27.11x and 18.11x respectively, which means investors are paying more for the company's earnings than they would for other companies in the industry. … This is because there are many company-specific factors like future prospects and capital structure, which are unaccounted for.

Simply Wall St -

TCS Company Info

Description

Tata Consultancy Services Limited provides information technology (IT) and IT enabled services worldwide. The company offers CHROMA, a cloud-based talent management solution that enables organizations to drive transformational employee experiences; ignio, a cognitive automation system; iON, an assessment solution; TAP, a cloud solution, including TAP contract management, purchasing, accounts payable, and supplier management solutions; and TCS MasterCraft, a platform to automate and manage IT processes. It also provides customer intelligence and insight solutions to deliver personalized retail, banking, and communications experiences; Intelligent Urban Exchange, an enterprise software to accelerate smart city transportation, water, and energy programs for cities; OPTUMERA, a digital merchandising suite; TCS BaNCS, an insurance platform; and Jile, an agile software lifecycle delivery platform. In addition, the company offers advanced drug development and connected intelligent platforms; ERP on cloud platform that provides cloud-based solutions for enterprise operations; HOBS, a suite of hosted OSS/BSS applications and pre-modeled business processes; and TCS Cloud Plus solutions. Further, it provides quality engineering, business operations, consulting and systems integration, engineering, technology operation, and interactive services; and artificial intelligence, big data, cloud, cyber security, and Internet of Things technologies. The company serves banking, financial, and public services; consumer goods and distribution, insurance, life sciences and healthcare, manufacturing, retail, hi-tech, travel, transportation, and hospitality industries; communications, media, and technology industries; and energy, resource, and utility industries. The company has partnerships with Alcatel-Lucent Enterprise, Intel Corporation, and SAP. The company was founded in 1968 and is based in Mumbai, India. Tata Consultancy Services Limited is a subsidiary of Tata Sons Limited.

Details
Name: Tata Consultancy Services Limited
TCS
Exchange: NSEI
Founded: 1968
₹7,561,242,801,825
3,752,384,706
Website: http://www.tcs.com
Address: Tata Consultancy Services Limited
Nirmal Building,
9th Floor,
Mumbai,
Maharashtra, 400021,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI TCS Equity Shares National Stock Exchange of India IN INR 25. Aug 2004
BSE 532540 Equity Shares Mumbai Stock Exchange IN INR 25. Aug 2004
Number of employees
Current staff
Staff numbers
400,875
Tata Consultancy Services employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/22 12:52
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/17
Last earnings filing: 2019/01/18
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.