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Tata Consultancy ServicesNSE:TCS -0.69%91 Earnings Yield (Joel Greenblatt) % is 9.22% as of Jun. 2026, which is 76% above its 10-year median of 5.24. GuruFocus rates NSE:TCS with a GF Score™ of 91/100 and a GF Value™ of ₹4,082.90 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,905 Software companies, Tata Consultancy Services ranks better than 75.18% on this metric.
Tata Consultancy Services's Enterprise Value for the quarter that ended in Jun. 2026 was ₹7,350,146 Mil.
Tata Consultancy Services's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was ₹677,570 Mil. Tata Consultancy Services's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2026 was 9.22%.
The historical rank and industry rank for Tata Consultancy Services's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
NSE:TCS'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.28 Med: 5.24 Max: 9.16
Current: 8.42
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Tata Consultancy Services was 9.16%. The lowest was 3.28%. And the median was 5.24%.
NSE:TCS's Earnings Yield (Joel Greenblatt) % is ranked better than 75.18% of 2905
companies
in the Software industry
Industry Median: 1.92
vs NSE:TCS: 8.42
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Tata Consultancy Services's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2026 was 13.42%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Tata Consultancy Services Earnings Yield (Joel Greenblatt) % Related Terms
Tata Consultancy Services Earnings Yield (Joel Greenblatt) % Historical Data
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The historical data trend for Tata Consultancy Services's Earnings Yield (Joel Greenblatt) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Information Technology Services subindustry, Tata Consultancy Services's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tata Consultancy Services Earnings Yield (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, Tata Consultancy Services's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Tata Consultancy Services's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Tata Consultancy Servicess Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Mar. 2026 is calculated as
Tata Consultancy Services's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹677,570 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 9.22% mean?
Tata Consultancy Services (NSE:TCS) has a Earnings Yield (Joel Greenblatt) % of 9.22% as of Jun. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Tata Consultancy Services and its competitors. This is 76% above median its historical median of 5.24. Over the past decade, Tata Consultancy Services' Earnings Yield (Joel Greenblatt) % has ranged from 3.28 to 9.16. According to the industry distribution chart, Tata Consultancy Services ranks #721 out of 2905 companies in the Software industry, placing it in the top 24.8%.
Is Tata Consultancy Services' Earnings Yield (Joel Greenblatt) % too high?
Tata Consultancy Services' current Earnings Yield (Joel Greenblatt) % of 9.22% is 76% above median its 10-year median of 5.24. Over the past 10 years, this metric has ranged from a low of 3.28 to a high of 9.16. The Software industry median Earnings Yield (Joel Greenblatt) % is 1.92. Tata Consultancy Services' value of 9.22% is 380.2% above this industry median. Based on the distribution chart, Tata Consultancy Services ranks #721 out of 2905 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Tata Consultancy Services has a GF Score™ of 91/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tata Consultancy Services' Earnings Yield (Joel Greenblatt) % compare to IBM and ACN?
According to the Software industry distribution chart, Tata Consultancy Services ranks #721 out of 2905 companies for Earnings Yield (Joel Greenblatt) %. This places Tata Consultancy Services in the top 25% of its industry — outperforming the majority of peers. The industry median Earnings Yield (Joel Greenblatt) % is 1.92. Tata Consultancy Services' value of 9.22% is 380.2% above this benchmark. Historically, Tata Consultancy Services' own Earnings Yield (Joel Greenblatt) % has ranged from 3.28 to 9.16 over the past decade. While the company's 10-year median is 5.24 vs. the industry median of 1.92, Tata Consultancy Services has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield (Joel Greenblatt) % for a Software company?
The median Earnings Yield (Joel Greenblatt) % among Software companies is 1.92, based on 2,905 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Consultancy Services's current Earnings Yield (Joel Greenblatt) % of 9.22% is 380.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Tata Consultancy Services and its competitors. For the Software industry, the median Earnings Yield (Joel Greenblatt) % is 1.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Consultancy Services's current Earnings Yield (Joel Greenblatt) % is 9.22%, which is 76% above median its own 10-year median of 5.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tata Consultancy Services stock overvalued right now?
Based on GuruFocus' analysis, Tata Consultancy Services (NSE:TCS) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹4,082.90, compared to a current price of ₹2,304.00 — trading 43.6% below its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 9.22%, which is 76% above median its 10-year median of 5.24 and 380.2% above the Software industry median of 1.92. Tata Consultancy Services' overall GF Score™ is 91/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Tata Consultancy Services (NSE:TCS), the current Earnings Yield (Joel Greenblatt) % is 9.22% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tata Consultancy Services (NSE:TCS) Overvalued in 2026?
Based on GuruFocus' analysis, Tata Consultancy Services stock appears to be undervalued.
The current stock price of ₹2,304.00 is trading 43.6% below its estimated GF Value™ of ₹4,082.90.
GuruFocus considers Tata Consultancy Services to be Significantly Undervalued.
Key valuation signals for NSE:TCS:
Earnings Yield (Joel Greenblatt) %: 9.22% (76% above median its 10-year median of 5.24)
GF Value™: ₹4,082.90 vs. price of ₹2,304.00 (43.6% below fair value)
Industry Position: 380.2% above the Software median (#721 of 2905)
No single metric tells the full story. See the NSE:TCS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tata Consultancy Services is a leading global IT services provider based in Mumbai, India. Founded in 1968, it is one of the first companies to leverage a global delivery model that helps clients outsource their IT needs to offshore labor. The company boasts a wide range of offerings, including IT consulting, managed services, and business process outsourcing.
91GF Score
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