Company Valuation: Tata Consultancy Services Ltd.

Data adjusted to current consolidation scope
Fiscal Period: March 2021 2022 2023 2024 2025 2026 2027 2028
Capitalization 1 11,755,030 13,684,669 11,730,553 14,024,793 13,047,366 8,918,224 - -
Change - 16.42% -14.28% 19.56% -6.97% -31.65% - -
Enterprise Value (EV) 1 11,421,230 13,249,619 11,300,103 13,657,333 12,679,766 8,523,558 8,539,219 8,460,713
Change - 16.01% -14.71% 20.86% -7.16% -32.78% 0.18% -0.92%
P/E ratio 36.6x 36.1x 27.8x 30.8x 26.9x 17.6x 16.1x 15x
PBR 13.8x 15.4x 13x 15.5x 13.8x 8.49x 7.98x 7.48x
PEG - 1.9x 2.5x 3.32x 4.07x 3.86x 1.72x 2.13x
Capitalization / Revenue 7.16x 7.14x 5.2x 5.82x 5.11x 3.37x 3.15x 2.95x
EV / Revenue 6.96x 6.91x 5.01x 5.67x 4.97x 3.22x 3.02x 2.8x
EV / EBITDA 24.5x 25x 19.1x 21.2x 18.8x 11.9x 11.1x 10.2x
EV / EBIT 26.9x 27.3x 20.8x 23x 20.4x 12.9x 12x 11.1x
EV / FCF 31.7x 35.4x 28.7x 32.4x 27.6x 17.8x 16x 14.8x
FCF Yield 3.16% 2.83% 3.49% 3.09% 3.63% 5.61% 6.23% 6.77%
Dividend per Share 2 38 43 115 73 126 120.6 127 137.1
Rate of return 1.2% 1.15% 3.59% 1.88% 3.49% 4.89% 5.15% 5.56%
EPS 2 86.71 103.6 115.2 125.9 134.2 140.3 153.4 164.2
Distribution rate 43.8% 41.5% 99.8% 58% 93.9% 86% 82.8% 83.5%
Net sales 1 1,641,770 1,917,540 2,254,580 2,408,930 2,553,240 2,645,312 2,832,035 3,021,982
EBITDA 1 465,460 530,570 592,590 642,960 674,070 719,185 770,631 825,682
EBIT 1 424,810 484,530 542,370 593,110 621,650 662,267 711,822 764,565
Net income 1 324,300 383,270 421,470 459,080 485,530 507,467 555,844 596,167
Net Debt 1 -333,800 -435,050 -430,450 -367,460 -367,600 -394,665 -379,005 -457,511
Reference price 2 3,177.85 3,739.95 3,205.90 3,876.30 3,606.15 2,464.90 2,464.90 2,464.90
Nbr of stocks (in thousands) 3,699,051 3,659,051 3,659,051 3,618,088 3,618,088 3,618,088 - -
Announcement Date 4/12/21 4/11/22 4/12/23 4/12/24 4/10/25 - - -
1INR in Million2INR
Estimates

P/E ratio, Detailed evolution

P/E (Y) EV / Sales (Y) EV / EBITDA (Y) Dividend Yield (Y) Capi.($)
17.91x3.29x12.09x4.8% 99B
23.05x3.84x13.73x2.7% 235B
14.96x1.6x8.5x3.23% 124B
19.8x3.41x11.7x2.97% 87.52B
20.71x5.41x13.35x2.76% 63.46B
-44.8x12.34x90.43x-.--% 59.99B
18.59x2.76x11.73x3.83% 57.08B
14.65x1.66x11.55x1% 40.32B
21.46x2.67x12.76x4.14% 40.11B
23.91x1.64x11.62x0.72% 38.11B
Average 13.02x 3.86x 19.75x 2.62% 84.44B
Weighted average by Cap. 15.18x 3.79x 17.60x 2.84%

Y-o-Y evolution of P/E

Historical PBR trend

Evolution Enterprise Value / Sales

Change in Enterprise Value/EBITDA

Year-on-year evolution of the Yield

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