Tata Consultancy Services Stock Current Valuation
| TCS Stock | 4,353 37.60 0.87% |
Valuation analysis of Tata Consultancy Services helps investors to measure Tata Consultancy's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. At present, Tata Consultancy's Free Cash Flow is projected to increase significantly based on the last few years of reporting. The current year's Other Non Cash Items is expected to grow to about 3.4 B, whereas Cash And Short Term Investments are forecasted to decline to about 238 B. Fundamental drivers impacting Tata Consultancy's valuation include:
Price Book 15.3824 | Enterprise Value 15.1 T | Enterprise Value Ebitda 21.7341 | Price Sales 6.2992 | Forward PE 31.6456 |
Overvalued
Today
Please note that Tata Consultancy's price fluctuation is very steady at this time. Calculation of the real value of Tata Consultancy Services is based on 3 months time horizon. Increasing Tata Consultancy's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Tata stock is determined by what a typical buyer is willing to pay for full or partial control of Tata Consultancy Services. Since Tata Consultancy is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Tata Stock. However, Tata Consultancy's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 4352.7 | Real 3958.52 | Hype 4351.44 |
The real value of Tata Stock, also known as its intrinsic value, is the underlying worth of Tata Consultancy Services Company, which is reflected in its stock price. It is based on Tata Consultancy's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Tata Consultancy's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Tata Consultancy Services helps investors to forecast how Tata stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Tata Consultancy more accurately as focusing exclusively on Tata Consultancy's fundamentals will not take into account other important factors: Tata Consultancy Services Company Current Valuation Analysis
Tata Consultancy's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Tata Consultancy Current Valuation | 15.15 T |
Most of Tata Consultancy's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Tata Consultancy Services is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, Tata Consultancy Services has a Current Valuation of 15.15 T. This is much higher than that of the IT Services sector and significantly higher than that of the Information Technology industry. The current valuation for all India stocks is notably lower than that of the firm.
Tata Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Tata Consultancy's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Tata Consultancy could also be used in its relative valuation, which is a method of valuing Tata Consultancy by comparing valuation metrics of similar companies.Tata Consultancy is currently under evaluation in current valuation category among its peers.
Tata Consultancy ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Tata Consultancy's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Tata Consultancy's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Tata Fundamentals
| Return On Equity | 0.47 | ||||
| Return On Asset | 0.25 | ||||
| Profit Margin | 0.19 % | ||||
| Operating Margin | 0.24 % | ||||
| Current Valuation | 15.15 T | ||||
| Shares Outstanding | 3.62 B | ||||
| Shares Owned By Insiders | 71.78 % | ||||
| Shares Owned By Institutions | 16.34 % | ||||
| Price To Book | 15.38 X | ||||
| Price To Sales | 6.30 X | ||||
| Revenue | 2.41 T | ||||
| Gross Profit | 830.37 B | ||||
| EBITDA | 642.96 B | ||||
| Net Income | 459.08 B | ||||
| Cash And Equivalents | 110.32 B | ||||
| Total Debt | 80.21 B | ||||
| Book Value Per Share | 280.52 X | ||||
| Cash Flow From Operations | 443.38 B | ||||
| Earnings Per Share | 130.73 X | ||||
| Price To Earnings To Growth | 2.32 X | ||||
| Target Price | 4494.27 | ||||
| Number Of Employees | 612.72 K | ||||
| Beta | 0.52 | ||||
| Market Capitalization | 15.67 T | ||||
| Total Asset | 1.46 T | ||||
| Retained Earnings | 864.27 B | ||||
| Working Capital | 668.8 B | ||||
| Annual Yield | 0.01 % | ||||
| Net Asset | 1.46 T | ||||
| Last Dividend Paid | 57.0 |
About Tata Consultancy Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Tata Consultancy Services's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Tata Consultancy using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Tata Consultancy Services based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Other Information on Investing in Tata Stock
Tata Consultancy financial ratios help investors to determine whether Tata Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Tata with respect to the benefits of owning Tata Consultancy security.