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Information Technology · NSE: TCS

Tata Consultancy Services Limited - Fair Value & Intrinsic Value Estimate

Intrynsic's multi-model valuation estimates Tata Consultancy Services Limited's fair value at ₹1,688 per share (range ₹1,110–₹2,675) against a market price of ₹2,254 - a gap of -25.1% (updated 24 July 2026). This is an estimated fair value based on stated assumptions, not investment advice.

Low ₹1,110Above fair-value est.High ₹2,675

Market price

₹2,254

close of 24 Jul 2026

Est. fair value

₹1,688

₹1,110–₹2,675

Gap

-25.1%

price vs estimate

Trading ~25% above our estimated fair-value range. Assumptions and per-model workings are below.

What Tata Consultancy Services Limited does

Tata Consultancy Services is India's largest IT services company, writing and maintaining software for banks, retailers and governments worldwide. Most of its revenue comes from long-running contracts with large global clients.

Information Technology · IT - Software

Health signals

GrowthRevenue +5.8%/yr (3y)Okay

Over the last 3 years, revenue grew 5.8%/yr and profit grew 5.3%/yr.

ProfitabilityROE 46.1%Good

Every ₹100 of shareholder money earned ₹46.1 in profit last year, vs a sector median of 9.7%.

DebtD/E 0.11Good

It holds more cash than debt.

Valuation-25% vs estimateWeak

The market price is above our estimated fair-value range (based on stated assumptions).

Quality₹92 cash per ₹100 profitGood

About ₹92 of every ₹100 of reported profit turned into free cash (median, last 5 years); operating cash flow was positive in 5 of 5 years.

The valuation, explained- models, weights & assumptions ▾

Intrynsic values Tata Consultancy Services Limited with 4 independent models and blends them into one estimated fair-value range. Every number below is an estimate based on the stated assumptions - change the assumptions and the estimate changes.

ModelEstimated valuevs priceWeight
DCFFuture Cash Flows Method₹1,688-25%-
EV/RevenueRevenue Multiple Method₹2,755+22%-
EV/EBITDAIndustry Comparison Method₹2,675+19%-
DDMDividend Discount Method₹1,110-51%-

Key assumptions

Risk-free rate
7.0%
Equity risk premium
6.5%
Beta
1.296
Cost of equity
15.4%
Terminal growth
5.0%
Tax rate
25%

Reverse DCF: today's market price implies the company must grow free cash flow about 18.8% a year for the next decade - versus 8.6% historical revenue growth.

Key financialsFY17–FY26

Full statements & analysis →
Revenue₹2,67,021 Cr
Net profit₹49,454 Cr
EPS₹136.01
Free cash flow₹47,948 Cr
ROE (latest)46.1%
Revenue growth (CAGR)9.5%
Profit growth (CAGR)7.2%

Peers

Sector overview →
NINtec Systems Limited₹1,569 CrP/E 49.1ROE 34.8%
Ace Alpha Tech Limited₹209 CrP/E 13.9ROE 21.4%
California Software Company Limited₹76 CrP/E 4.8ROE 26.8%
Ksolves India Limited₹662 CrP/E 19.3ROE 113.3%
Accelya Solutions India Limited₹1,732 CrP/E 13.4ROE 49.0%
Shradha AI Technologies Limited₹151 CrP/E 13.7ROE 16.9%
Ask AI about Tata Consultancy Services LimitedChat with Intrynsic's research agent about results, risks and filings.Sign up free →Track it in your watchlistFair-value alerts, result-day briefs and portfolio analytics.Sign up free →See the full model workingsEvery assumption, per-model trace, reverse DCF and peer lens.Sign up free →

Frequently asked questions

What is Tata Consultancy Services Limited's intrinsic value?

Intrynsic's multi-model valuation estimates Tata Consultancy Services Limited's fair value at ₹1,688 per share (range ₹1,110–₹2,675), last updated 24 July 2026. This is an estimate based on stated assumptions, not investment advice.

Is Tata Consultancy Services Limited overvalued or undervalued?

Tata Consultancy Services Limited trades at ₹2,254 against Intrynsic's estimated fair value of ₹1,688 - the market price is 25% above the estimate, i.e. above our estimated fair-value range. Different assumptions produce different estimates; see the model breakdown above.

What is Tata Consultancy Services Limited's P/E ratio?

Tata Consultancy Services Limited trades at about 16.6 times its latest annual earnings per share.

What does Tata Consultancy Services Limited do?

Tata Consultancy Services is India's largest IT services company, writing and maintaining software for banks, retailers and governments worldwide. Most of its revenue comes from long-running contracts with large global clients.

How is Tata Consultancy Services Limited's fair value calculated?

Intrynsic runs 4 valuation models for Tata Consultancy Services Limited (DCF, EV/Revenue, EV/EBITDA, DDM) and blends them into one estimated fair-value range. Every assumption - growth, discount rate, terminal value - is shown openly on this page.

Disclaimer: Intrynsic provides educational and informational analysis only. Fair-value figures are estimates based on stated assumptions - they are not investment advice, research recommendations, or an offer to transact in any security. Intrynsic is not a SEBI-registered investment adviser or research analyst. Markets carry risk; please do your own research or consult a registered adviser before making investment decisions. Prices shown may be delayed end-of-day values. Terms · Privacy

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