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Tata Consultancy Services Ltd
NSE:TCS

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Tata Consultancy Services Ltd
NSE:TCS
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Price: 2 479.8 INR 1.32%
Market Cap: ₹9T

P/OCF

17.7
Current
39%
Cheaper
vs 3-y average of 29

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
17.7
=
Market Cap
₹9.4T
/
Operating Cash Flow
₹520.9B

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
17.7
=
Market Cap
₹9.4T
/
Operating Cash Flow
₹520.9B

Valuation Scenarios

Tata Consultancy Services Ltd is trading below its 3-year average

If P/OCF returns to its 3-Year Average (29), the stock would be worth ₹4 071.48 (64% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+66%
Average Upside
51%
Scenario P/OCF Value Implied Price Upside/Downside
Current Multiple 17.7 ₹2 479.8
0%
3-Year Average 29 ₹4 071.48
+64%
5-Year Average 29.3 ₹4 109.42
+66%
Industry Average 25.2 ₹3 535.15
+43%
Country Average 23 ₹3 224.99
+30%

Forward P/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
All Countries
Close
Market Cap P/OCF P/E
IN
Tata Consultancy Services Ltd
NSE:TCS
8.7T INR 17.7 18.7
US
International Business Machines Corp
NYSE:IBM
213.9B USD 15.3 19.9
JP
BrainPad Inc
TSE:3655
20.9T JPY 69.4 551.4
IE
Accenture PLC
NYSE:ACN
108.9B USD 8.3 14.2
IN
Infosys Ltd
NSE:INFY
4.7T INR 14 17.1
JP
Fujitsu Ltd
TSE:6702
6.7T JPY 17 14.1
JP
NEC Corp
TSE:6701
6.2T JPY 13.4 25.1
JP
NTT Data Group Corp
DUS:NT5
30.3B EUR 11.2 38.8
JP
NTT Data Corp
TSE:9613
5.6T JPY 11.3 39.1
IN
HCL Technologies Ltd
NSE:HCLTECH
3.3T INR 17.1 20.5
US
Cognizant Technology Solutions Corp
NASDAQ:CTSH
26.2B USD 9.1 11.7

Market Distribution

In line with most companies in India
Percentile
39th
Based on 2 204 companies
39th percentile
17.7
Low
0.5 — 14
Typical Range
14 — 39.7
High
39.7 —
Distribution Statistics
India
Min 0.5
30th Percentile 14
Median 23
70th Percentile 39.7
Max 28 676

Tata Consultancy Services Ltd
Glance View

Tata Consultancy Services Ltd. (TCS) stands as a sterling example of India’s prowess in the global IT services market, a narrative of strategic vision and relentless execution. Born within the renowned Tata Group in 1968, TCS embarked on its journey amidst modest surroundings but with a bold ambition to revolutionize business processes through technology. Over the decades, TCS has morphed into a global leader, occupying a formidable spot in the consulting and IT services arena. The company thrives on its ability to offer a wide array of services that ranges from IT consulting and services integration to business solutions and outsourcing. At its core, TCS helps businesses leverage cutting-edge technology like artificial intelligence, machine learning, and blockchain to streamline operations, elevate customer experience, and foster innovation. The engine of TCS's revenue generation hums with its robust strategy of engaging deeply with diverse industry verticals such as banking, retail, telecommunications, and healthcare. By positioning itself as a partner in technological transformation, TCS secures long-term contracts that ensure recurring revenue streams. Its globally distributed talent model, marked by a blend of onsite and offshore delivery, not only optimizes costs but also allows for round-the-clock project execution, enabling TCS to meet client needs efficiently. Furthermore, TCS invests significantly in research and development to stay ahead of technological trends, ensuring its service offerings continue to align with the evolving marketplace demands. The company’s prowess in navigating large-scale transformations makes it indispensable to clients worldwide looking for strategic guidance in an increasingly digital landscape.

TCS Intrinsic Value
2 832.46 INR
Undervaluation 12%
Intrinsic Value
Price ₹2 479.8
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