Tata Consultancy Services Ltd
NSE:TCS
Intrinsic Value
Tata Consultancy Services Ltd. is an information technology services, consulting, and business solutions organization. [ Read More ]
The intrinsic value of one
TCS
stock under the Base Case scenario is
2 983.85
INR.
Compared to the current market price of 3 823.45 INR,
Tata Consultancy Services Ltd
is
Overvalued by 22%.
Tata Consultancy Services Ltd's market capitalization is 13.8T INR.
TCS stock price is 3 823.45 INR.
TCS stock (2 983.85 INR) is 22% less than its price (3823.45 INR).
TCS stock (1 782.81 INR) is 53% less than its price (3823.45 INR). Open DCF Valuation
TCS stock price (3823.45 INR) is 9% less than its Relative Value (4 184.9 INR). Open Relative Valuation
TCS's Revenue has grown by 10% over the past 12 months.
TCS's Revenue is forecast to grow at a rate of 9% per year over the next 3 years.
TCS's ROE (Return on Equity) has increased in the last 3 years from 38% to 46%.
TCS has positive Net Income for the last twelve months.
TCS's ROIC (Return on Invested Capital) has increased in the last 3 years from 39% to 48%.
TCS's Revenue has been growing by 14% per year for the last 3 years.
TCS has positive Operating Income for the last twelve months.
TCS's ROE (Return on Equity) for the past 12 months is very high and is equal to 46%.
TCS's ROIC (Return on Invested Capital) for the past 12 months is very high and is equal to 48%.
TCS has positive Free Cash Flow for the last twelve months.
TCS's short-term assets (1T INR) exceed its short-term liabilties (449B INR).
TCS's long-term assets (1T INR) exceed its long-term liabilties (543B INR).
TCS has positive Gross Profit for the last twelve months.
TCS has very high three-year average ROE (Return on Equity): 42%. The company is very efficient at transforming stockholders' equity into net income.
TCS has very high three-year average ROIC (Return on Invested Capital): 44%. The company is very efficient at using invested capital to generate operating income.
TCS's D/E (Debt to Equity) is very low and is equal to 0.07.
TCS has negative Net Debt. This means that the company has more cash and short-term investments (430B INR) than debt (61B INR).
TCS's Altman Z-Score is very high and is equal to 19.19.
TCS earns more than enough operating income (579B INR) to safely cover interest payments on its debt (8B INR).
Valuation Backtest
Tata Consultancy Services Ltd
Run backtest to discover the historical profit from buying and selling
TCS
stocks based on their intrinsic value.
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Fundamental Analysis
Tata Consultancy Services Ltd
Balance Sheet Decomposition
Tata Consultancy Services Ltd
| Current Assets | 1.1T |
| Cash & Short-Term Investments | 430.2B |
| Receivables | 619B |
| Other Current Assets | 44.4B |
| Non-Current Assets | 330.2B |
| Long-Term Investments | 25.7B |
| PP&E | 182.5B |
| Intangibles | 24.8B |
| Other Non-Current Assets | 97.2B |
| Current Liabilities | 448.8B |
| Accounts Payable | 107.5B |
| Accrued Liabilities | 144.9B |
| Other Current Liabilities | 196.5B |
| Non-Current Liabilities | 94.5B |
| Long-Term Debt | 60.6B |
| Other Non-Current Liabilities | 33.9B |
Earnings Waterfall
Tata Consultancy Services Ltd
|
Revenue
|
2.4T
INR
|
|
Cost of Revenue
|
-27.6B
INR
|
|
Gross Profit
|
2.4T
INR
|
|
Operating Expenses
|
-1.8T
INR
|
|
Operating Income
|
578.8B
INR
|
|
Other Expenses
|
-130.2B
INR
|
|
Net Income
|
448.7B
INR
|
Free Cash Flow Analysis
Tata Consultancy Services Ltd
TCS Profitability Score
Profitability Due Diligence
Tata Consultancy Services Ltd's profitability score is 80/100. The higher the profitability score, the more profitable the company is.
Score
Tata Consultancy Services Ltd's profitability score is 80/100. The higher the profitability score, the more profitable the company is.
TCS Solvency Score
Solvency Due Diligence
Tata Consultancy Services Ltd's solvency score is 92/100. The higher the solvency score, the more solvent the company is.
Score
Tata Consultancy Services Ltd's solvency score is 92/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
TCS Price Targets Summary
Tata Consultancy Services Ltd
According to Wall Street analysts, the average 1-year price target for
TCS
is 4 088.21 INR
with a low forecast of 3 041.11 INR and a high forecast of 4 935 INR.
Shareholder Return
TCS Price
Tata Consultancy Services Ltd
| Average Annual Return | 13.97% |
| Standard Deviation of Annual Returns | 24.7% |
| Max Drawdown | -27% |
| Market Capitalization | 13.8T INR |
| Shares Outstanding | 3 651 036 706 |
| Percentage of Shares Shorted |
N/A
|
Company Profile
Tata Consultancy Services Ltd
Country
Industry
Market Cap
Dividend Yield
Description
Tata Consultancy Services Ltd. is an information technology services, consulting, and business solutions organization. The company is headquartered in Mumbai, Maharashtra and currently employs 606,331 full-time employees. The company went IPO on 2004-08-25. The firm's segments include Banking, Financial Services and Insurance, Manufacturing, Retail and Consumer Business, Communication, Media and Technology, Life Sciences and Healthcare and Others. The Company’s products include TCS BaNCS, TCS Connected Intelligence Platform, ignio, TCS iON, TCS MasterCraft, TAP, CHROMA, TCS Customer Intelligence & Insights, TCS Intelligent Urban Exchange, Jile, TCS OmniStore, Quartz and The Smart Ledgers. Its platforms include TCS ADD TCS BFSI Platforms ERP on Cloud and TCS HOBS. Its services portfolio consists of IT and assurance services, business intelligence and performance management, business process services, cloud services, connected marketing solutions, mobility products and services and platform solutions. The company serves industries, including insurance, healthcare, retail, telecom and others.
Contact
IPO
Employees
Officers
The intrinsic value of one
TCS
stock under the Base Case scenario is
2 983.85
INR.
Compared to the current market price of 3 823.45 INR,
Tata Consultancy Services Ltd
is
Overvalued by 22%.
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