Tata Consultancy Services Limited

NSEI:TCS Stock Report

Market Cap: ₹16.1t

Tata Consultancy Services Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 TCS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TCS (₹4452.15) is trading above our estimate of fair value (₹1678.96)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TCS. This is calculated by dividing TCS's market cap by their current earnings.
What is TCS's PE Ratio?
PE Ratio34x
Earnings₹474.41b
Market Cap₹16.11t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TCS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.7x
INFY Infosys
29.1x8.2%₹8.0t
HCLTECH HCL Technologies
30.4x9.1%₹5.2t
507685 Wipro
27.1x8.1%₹3.2t
TECHM Tech Mahindra
48x24.9%₹1.6t
TCS Tata Consultancy Services
34x10.1%₹16.1t

Price-To-Earnings vs Peers: TCS is expensive based on its Price-To-Earnings Ratio (34x) compared to the peer average (33.7x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GTL GTL
1.4xn/aUS$25.85m
517429 Athena Global Technologies
0.7xn/aUS$16.27m
509040 Netlink Solutions (India)
4.2xn/aUS$6.61m
512341 CES
0.05xn/aUS$130.33k
No more companies available in this PE range
TCS 34.0xIndustry Avg. 36.2xNo. of Companies19PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TCS is good value based on its Price-To-Earnings Ratio (34x) compared to the Indian IT industry average (36.2x).

Price to Earnings Ratio vs Fair Ratio

What is TCS'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.

TCS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio34x
Fair PE Ratio61.6x

Price-To-Earnings vs Fair Ratio: TCS is good value based on its Price-To-Earnings Ratio (34x) compared to the estimated Fair Price-To-Earnings Ratio (61.6x).

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 TCS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹4,452.15
₹4,508.05
+1.3%
11.1%₹5,710.00₹3,050.00n/a44
Dec ’25₹4,270.85
₹4,508.05
+5.6%
11.1%₹5,710.00₹3,050.00n/a44
Nov ’25₹3,984.20
₹4,515.36
+13.3%
11.1%₹5,710.00₹3,050.00n/a44
Oct ’25₹4,287.90
₹4,440.84
+3.6%
11.3%₹5,730.00₹3,050.00n/a44
Sep ’25₹4,553.75
₹4,335.00
-4.8%
10.6%₹5,740.00₹3,050.00n/a44
Aug ’25₹4,397.10
₹4,301.89
-2.2%
9.0%₹4,821.00₹3,050.00n/a45
Jul ’25₹3,978.20
₹4,217.19
+6.0%
8.9%₹4,750.00₹3,050.00n/a43
Jun ’25₹3,670.95
₹4,197.70
+14.3%
9.9%₹4,787.00₹3,040.00n/a44
May ’25₹3,820.65
₹4,199.36
+9.9%
9.8%₹4,787.00₹3,040.00n/a44
Apr ’25₹3,916.75
₹4,059.07
+3.6%
10.4%₹4,750.00₹2,960.00n/a41
Mar ’25₹4,094.35
₹4,003.29
-2.2%
9.5%₹4,700.00₹2,960.00n/a41
Feb ’25₹3,854.15
₹3,936.80
+2.1%
9.2%₹4,575.00₹2,960.00n/a41
Jan ’25₹3,811.10
₹3,724.72
-2.3%
9.6%₹4,422.00₹2,900.00n/a39
Dec ’24₹3,511.65
₹3,685.82
+5.0%
9.3%₹4,210.00₹2,900.00₹4,270.8539
Nov ’24₹3,330.65
₹3,689.41
+10.8%
9.4%₹4,210.00₹2,900.00₹3,984.2039
Oct ’24₹3,528.60
₹3,587.78
+1.7%
10.0%₹4,220.00₹2,650.00₹4,287.9040
Sep ’24₹3,379.20
₹3,497.61
+3.5%
10.3%₹4,450.00₹2,650.00₹4,553.7541
Aug ’24₹3,452.05
₹3,474.12
+0.6%
10.1%₹4,450.00₹2,650.00₹4,397.1042
Jul ’24₹3,302.25
₹3,460.28
+4.8%
10.3%₹4,450.00₹2,700.00₹3,978.2040
Jun ’24₹3,324.00
₹3,457.74
+4.0%
10.6%₹4,490.00₹2,700.00₹3,670.9539
May ’24₹3,219.25
₹3,462.18
+7.5%
10.4%₹4,490.00₹2,700.00₹3,820.6540
Apr ’24₹3,205.90
₹3,490.01
+8.9%
10.4%₹4,510.00₹2,840.00₹3,916.7540
Mar ’24₹3,385.70
₹3,487.18
+3.0%
10.5%₹4,530.00₹2,840.00₹4,094.3540
Feb ’24₹3,408.35
₹3,485.01
+2.2%
10.0%₹4,530.00₹2,840.00₹3,854.1543
Jan ’24₹3,256.70
₹3,401.20
+4.4%
11.4%₹4,530.00₹2,840.00₹3,811.1040
Dec ’23₹3,475.65
₹3,394.95
-2.3%
11.6%₹4,530.00₹2,620.00₹3,511.6540

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

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