Tata Consultancy Fair Value
TC
The fair market value of TCS.NS stock is 3920.11 INR. Relative to the market price of 4346.15 INR Tata Consultancy Services is overvalued by 9.8%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Tata Consultancy Valuation
Current TCS.NS share ticker price is 4346.15 INR.
The fair value level of 3920.11 INR can be considered as an effective entry point for long-term investors to start investing in TCS.NS stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 10% higher its fair value
Current price is 26% higher its minimum value
Current price is 7% lower its maximum value
Market price:
TCS.NS stock is overvalued
It means the current price may concern as a Risky Entry Point
Tata Consultancy Services Ltd Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
36.1
2
Median P/E over 5 years
30.32
3
Minimum P/E over 5 years
25.03
4
Earning per share (last 12 months)
129.27 INR
Maximum value
1
x
4
=
4 666.37 INR
Fair value
2
x
4
=
3 920.11 INR
Minimum value
3
x
4
=
3 235.14 INR
Tata Consultancy Services Ltd price metrics
16.1
Annual return (geometric mean)
24.5
Risk (standard deviation) of returns
β
1.0
Beta (volatility compared to market)