TATA CONSULTANCY SERV LT Valuation
TCS · Information Technology · Current price ₹2,356
Is TATA CONSULTANCY SERV LT undervalued?
DocStoX estimates the fair value of TATA CONSULTANCY SERV LT at ₹4,166 per share, versus the current market price of ₹2,356. That puts the stock about +76.8% below our fair-value estimate, which we read as "Strong Buy". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 4 independent methods: Residual income (₹6,256), Relative P/E (₹3,129), Graham floor (₹952), Analyst target (₹2,422). 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 ₹4,166 (base) to ₹6,256 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
Valuation multiples
TATA CONSULTANCY SERV LT trades at a P/E of 17.3x and a P/B of 7.0x, with a dividend yield of 0.5%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.
Understand the ratios
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.