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Tata Consultancy Services Ltd TCS Stock Quote

| Rating as of

XNSE: TCS

Last close prices updated as of Feb 06, 2023, 12:36 PM IST | INR
  • Last Close 3482.3
  • Sector Technology
  • Industry Information Technology Services
  • Investment Style Large Blend
  • Day Range 3,436.85  –  3,473.15
  • Year Range 2,950.10  –  3,854.10
  • Market Cap 12.6479 Tril
  • Volume / Avg 587,062.0 /  1.7 Mil
  • Price / Sales 5.89
  • Price / Book 12.01
  • Forward Div Yield 1.32%
  • Trailing Div Yield 1.34%

Morningstar‘s Stock Analysis TCS

Valuation
Currency in
Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

Tata Consultancy Services’ Q3 Results in Good Shape, Though Deal Lag Continues; Shares Overvalued

Julie Bhusal Sharma Equity Analyst

Analyst Note

| Julie Bhusal Sharma |

Wide-moat Tata Consulting Services’ third-quarter results came in nicely, in what typically is a seasonally weak quarter. Profitability expectations were right in line with our estimates, with revenue coming in slightly above our forecast. Nonetheless, the firm is feeling the decision-making lag generally seen across the tech landscape, as total contract value has declined both sequentially and on a year-over-year basis. We are maintaining our fair value estimate of INR 2,840 due to the uncertainty we see ahead. Shares are up 3% upon results, leaving the IT services giant trading in overvalued territory, in our view. Overall, our belief that the stock is overvalued does not undermine that we continue to believe Tata has an exceptionally wide moat—that we trust is behind an uptick in vendor consolidation from which the firm is benefiting. However, we feel that the market is not factoring in risks such as narrowing wage arbitrage to their full extent.

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Key Statistics TCS

Company Profile TCS

Business Description

Tata Consultancy Services is a leading global IT services provider, with nearly 450,000 employees. Based in Mumbai, the India IT services firm leverages its offshore outsourcing model to derive half of its revenue from North America. The company offers traditional IT services offerings: consulting, managed services, and cloud infrastructure services as well as business process outsourcing as a service, or BPaaS.

Contact
Raveline Street, TCS House, Fort
Mumbai, MH, 400001, IND
Industry Information Technology Services
Employees 592,195

Related Articles TCS

FAQs for Tata Consultancy Services Ltd Stock

Yes. TCS has a forward dividend yield of 1.32%. See TCS’s full dividends and stock split history on the Dividend tab.
Dividend yield allows investors, particularly those interested in dividend-paying stocks, to compare the relationship between a stock’s price and how it rewards stockholders through dividends. The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price.

Learn more about dividend yield.

TCS’s market cap is 12.65 Tril.
Market capitalization is calculated by taking a company’s share price and multiplying it by the total number of shares. It’s often used to measure a company’s size. In the Morningstar Style Box, large-cap names account for the largest 70% of U.S. stocks, mid-cap names account for the largest 70–90%, and small-cap names are the remaining 10% of companies.

Learn more about market capitalization.

TCS’s stock style is Large Core.
Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated.

High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends.

Learn more about style.

TCS’s price/sales is 5.89.
Price/sales represents the amount an investor is willing to pay for a dollar generated from a particular company’s sales or revenues.

TCS’s price/forward earnings is 26.45.
Forward P/E gives some indication of how cheap or expensive a stock is compared with consensus earnings estimates. The lower the Forward P/E, the cheaper the stock.

TCS’s price/book is 12.01.
Price/book ratio can tell investors approximately how much they’re paying for a company’s assets, based on historical, rather than current, valuations. Historical valuations generally do not reflect a company’s current market value. Value investors frequently look for companies that have low price/book ratios.

See TCS’s valuation ratios compared to the Market Index.

TCS’s beta can be found in Trading Information at the top of this page.
A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.

Compare TCS’s historical performance against its industry peers and the overall market.