Tata Consultancy Services Limited (TCS.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+175.1%

₹6,860.77

vs ₹2,493.90 price

Levered DCF

₹6,621.83

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

11.68

Safe zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	17.34×	26.46×	31.11×	27.83×	36.09×	36.65×	21.19×	24.46×
P/B	7.95×	13.56×	15.79×	12.97×	15.52×	13.75×	8.15×	8.61×
P/S	3.2×	5.03×	5.93×	5.2×	7.21×	7.24×	4.37×	5.26×
EV / EBITDA	11.87×	18.02×	21.07×	18.73×	24.25×	24.59×	14.77×	17.41×
Gross margin	30.9%	42.9%	44.8%	46.9%	47.7%	47.1%	47.7%	48.7%
Operating margin	25.0%	24.4%	24.7%	24.1%	25.3%	26.0%	24.7%	25.6%
Net margin	18.4%	19.0%	19.1%	18.7%	20.0%	19.8%	20.6%	21.5%
Current ratio	2.19×	2.32×	2.45×	2.53×	2.56×	2.91×	3.33×	4.17×
Debt / equity	0.11×	0.1×	0.09×	0.09×	0.09×	0.09×	0.1×	0×
Interest coverage	54.47×	78.26×	76.38×	69.8×	61.97×	67×	41.91×	189.14×
Dividend yield	4.6%	3.5%	1.8%	3.5%	1.0%	0.9%	5.5%	1.5%
Payout ratio	80.1%	92.4%	54.8%	98.1%	34.7%	33.5%	116.4%	36.3%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	45.8%	51.2%	50.7%	46.6%	43.0%	37.5%	38.4%	35.2%
Return on invested capital	40.9%	43.0%	43.4%	39.8%	35.9%	32.4%	31.3%	30.6%
Return on assets	27.0%	30.4%	31.3%	29.3%	27.1%	24.8%	26.7%	27.4%
Free cash flow yield	5.9%	3.5%	2.9%	3.3%	2.7%	3.0%	4.2%	3.4%
Earnings yield	5.8%	3.8%	3.2%	3.6%	2.8%	2.7%	4.7%	4.1%
Enterprise value	₹8.6T	₹12.9T	₹14.3T	₹11.7T	₹13.8T	₹11.9T	₹6.8T	₹7.6T
Net debt / EBITDA	0.06×	0.01×	-0.01×	0.01×	-0.08×	0.02×	-0.01×	-0.16×
Cash conversion cycle (days)	94	74	81	58	58	81	64	59