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Tata Consultancy ServicesNSE:TCS +0.17%87 EV-to-EBIT is 11.87 as of Aug. 22, 2026, which is 38% below its 10-year median of 19.09. GuruFocus rates NSE:TCS with a GF Score™ of 87/100 and a GF Value™ of ₹4,070.43 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,778 Software companies, Tata Consultancy Services ranks better than 56.41% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
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 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹677,570 Mil.
* 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.
Tata Consultancy Services EV-to-EBIT Related Terms
Tata Consultancy Services EV-to-EBIT Historical Data
* 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 EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Software Industry
For the Software industry and Technology sector, Tata Consultancy Services's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Tata Consultancy Services's EV-to-EBIT falls into.
Tata Consultancy Services's current Enterprise Value is ₹8,040,317 Mil.
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.
* 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.
Tata Consultancy Services (NSE:TCS) has a EV-to-EBIT of 11.87 as of Aug. 22, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Tata Consultancy Services and its competitors. This is 38% below median its historical median of 19.09. Over the past decade, Tata Consultancy Services' EV-to-EBIT has ranged from 10.92 to 30.51. According to the industry distribution chart, Tata Consultancy Services ranks #775 out of 1778 companies in the Software industry, placing it in the top 43.6%.
Is Tata Consultancy Services' EV-to-EBIT too high?
Tata Consultancy Services' current EV-to-EBIT of 11.87 is 38% below median its 10-year median of 19.09. Over the past 10 years, this metric has ranged from a low of 10.92 to a high of 30.51. The Software industry median EV-to-EBIT is 13.97. Tata Consultancy Services' value of 11.87 is 15% below this industry median. Based on the distribution chart, Tata Consultancy Services ranks #775 out of 1778 companies in the Software industry, which is above the industry midpoint. Overall, Tata Consultancy Services has a GF Score™ of 87/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tata Consultancy Services' EV-to-EBIT compare to IBM and ACN?
According to the Software industry distribution chart, Tata Consultancy Services ranks #775 out of 1778 companies for EV-to-EBIT. This puts Tata Consultancy Services in the upper half of its industry. The industry median EV-to-EBIT is 13.97. Tata Consultancy Services' value of 11.87 is 15% below this benchmark. Historically, Tata Consultancy Services' own EV-to-EBIT has ranged from 10.92 to 30.51 over the past decade. While the company's 10-year median is 19.09 vs. the industry median of 13.97, Tata Consultancy Services has consistently been below 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 EV-to-EBIT for a Software company?
The median EV-to-EBIT among Software companies is 13.97, based on 1,778 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Consultancy Services's current EV-to-EBIT of 11.87 is 15% below 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Tata Consultancy Services and its competitors. For the Software industry, the median EV-to-EBIT is 13.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Consultancy Services's current EV-to-EBIT is 11.87, which is 38% below median its own 10-year median of 19.09. 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 ₹4,070.43, compared to a current price of ₹2,302.00 — trading 43.4% below its estimated fair value. The current EV-to-EBIT is 11.87, which is 38% below median its 10-year median of 19.09 and 15% below the Software industry median of 13.97. Tata Consultancy Services' overall GF Score™ is 87/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Tata Consultancy Services (NSE:TCS), the current EV-to-EBIT is 11.87 as of Aug. 22, 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 ₹2,302.00 is trading 43.4% below its estimated GF Value™ of ₹4,070.43.
GuruFocus considers Tata Consultancy Services to be Significantly Undervalued.
Key valuation signals for NSE:TCS:
EV-to-EBIT: 11.87 (38% below median its 10-year median of 19.09)
GF Value™: ₹4,070.43 vs. price of ₹2,302.00 (43.4% below fair value)
Industry Position: 15% below the Software median (#775 of 1778)
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.
87GF Score
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