Fundamentals scanner
Every ratio from the Fundamental Analysis track, computed on a real company and annotated with what the number actually means. Then the three financial statements, so you can do the cash-flow check yourself.
Tata Consultancy Services
TechnologyBullish- Market cap
- —
- P/E
- 17.2x
- ROE
- 47.7%
- Debt / equity
- 0.10
What the company does
Tata Consultancy Services Limited provides information technology (IT) and IT enabled services. It offers TCS ADD, a suite of AI powered life sciences platforms; TCS BaNCS, a financial services platform; TCS BFSI Platforms, a cloud-native, subscription-based as-a-service digital ecosystem for insurers and financial firms; TCS Chroma, a cloud-based AI-led hire-to-retire modular platform; TCS Customer Intelligence & Insights, an AI-powered, real-time customer data analytics solution; TCS ERP on Cloud, SAP transformation with AI-powered smart solutions; ignio, a cognitive automation software product; TCS iON, a learning ecosystem; and TCS HOBS, a cloud-native, catalog-centric platform with composable architecture and insights-led personalization capabilities. It also offers TCS Intelligent Urban Exchange for enterprises and smart cities; TCS OmniStore, a retail commerce platform; TCS Optumera, a strategic intelligence platform; TCS Tap, a platform for intelligent procurement; Quartz, a distributed ledger technology; TCS TwinX, a risk-free experimentation platform; TCS MasterCraft, an AI-driven cognitive automation product; Jile, an enterprise agile planning and delivery tool; TCS DigiBOLT, an end-to-end, organization-wide enterprise platform; and TCS AI WisdomNext, an enterprise grade GenAI platform. In addition, the company provides AI, data and analytics, cloud, cognitive business, consulting, cybersecurity, enterprise solutions, industrial autonomy and engineering, network solutions and services, TCS interactive, and sustainability services. It serves banking; capital markets; consumer packaged goods and distribution; communications, media, and information services; education; energy, resources, and utilities; healthcare; high tech; insurance; life sciences; manufacturing; public services; retail; and travel and logistics industries. The company was founded in 1968 and is based in Mumbai, India. The company operates as a subsidiary of Tata Sons Private Limited.
Valuation — what you are paying
How the price compares to earnings, assets and cash generation.
- P/E (trailing)17.2xStrong
You are paying 17.2 years of current profit for each share. The earnings yield is 5.8%.
- P/B (price to book)7.8xFair
The market values the company at 7.8× its accounting net worth. High is normal for asset-light businesses and unusual for banks.
- EV / EBITDA11.4xStrong
This is the only common multiple that accounts for debt — it is what an actual acquirer would look at, because they would inherit the borrowings.
- Dividend yield2.75%Strong
Pays 2.75% of the current price out each year. Remember that yield rises when price falls — check the dividend is covered by cash flow.
Profitability — is this a good business?
Returns on capital and margins, the numerical shadow of a moat.
- Return on equity47.7%Strong
Earns ₹47.7 of profit a year for every ₹100 of shareholders' money. Always check how much of this comes from leverage rather than the business.
- Return on assets24.5%Strong
ROE is 23.3 points above ROA — a large gap, meaning leverage is doing much of the work.
- Operating margin24.0%Strong
Keeps ₹24.0 of operating profit from every ₹100 of sales. Compare only against companies in the same industry.
- Net margin18.1%Strong
Sustained high net margins are evidence that something is stopping competitors from competing the profits away.
Financial strength — can it survive a bad year?
Leverage and liquidity. This is where fragility shows up first.
- Debt to equity0.10Strong
A conservative balance sheet that can absorb a downturn without a crisis.
- Current ratio2.28Strong
Short-term obligations are comfortably covered by short-term assets.
- Total debt₹11309.00 CrNo data
Against cash of ₹45031.00 Cr. Net debt is what matters, not gross borrowings.
- Free cash flow₹39716.50 CrStrong
Generates cash after paying for the capital spending needed to keep running. This is the money genuinely available to owners.
Growth — is it getting bigger?
Revenue and earnings momentum, and how the two compare.
- Revenue growth (yoy)+13.9%Fair
Ask where the growth came from: more volume, higher prices, or an acquisition. They are very different in quality.
- Earnings growth (yoy)+4.6%Fair
Profits are growing slower than sales, meaning margins are compressing. The company may be buying its growth.
- Revenue (TTM)₹2,75,859 CrNo data
EBITDA of ₹72069.00 Cr and operating cash flow of ₹52346.00 Cr.
- PEG ratio3.09Weak
P/E divided by expected growth. Only as reliable as that growth forecast, which is usually optimistic.