TATA CONSULTANCY SERV LT Fair Value
TCS · Information Technology · Current price ₹2,269
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹1,401 | 52% ROE fading to 12% over ~10 yrs, on ₹296 book |
| Relative P/E | ₹3,129 | EPS × 23.0 peer-median P/E |
| Graham floor | ₹952 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | — | No analyst coverage |
Is TATA CONSULTANCY SERV LT undervalued?
DocStoX estimates the fair value of TATA CONSULTANCY SERV LT at ₹1,817 per share, versus the current market price of ₹2,269. That puts the stock about -19.9% above our fair-value estimate, which we read as "Expensive". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 3 independent methods: Residual income (₹1,401), Relative P/E (₹3,129), Graham floor (₹952). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.
Bear, base and bull scenarios
Our scenarios span ₹952 (bear) to ₹1,817 (base) to ₹3,129 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
More on TATA CONSULTANCY SERV LT
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.