TATA CONSULTANCY SERV LT DCF Valuation

TCS · Information Technology · Current price ₹2,269

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DocStoX fair value
₹1,817
low confidence
Intrinsic-value estimate
₹1,401
52% ROE fading to 12% over ~10 yrs, on ₹296 book
Current price
₹2,269
Economic moat
Narrow
Medium uncertainty
5Y profit growth
+8.7%
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TATA CONSULTANCY SERV LT intrinsic-value estimate

Our intrinsic-value model estimates TATA CONSULTANCY SERV LT is worth ₹1,401 per share, based on 52% ROE fading to 12% over ~10 yrs, on ₹296 book. Rather than a raw DCF — which is highly sensitive to fragile cash-flow forecasts — we use a residual-income (excess-return) model: a company is worth its book value plus the present value of the returns it earns ABOVE its cost of equity. A narrow economic moat sets how long that edge is assumed to last.

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DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.