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Tata Consultancy ServicesNSE:TCS +0.17%87 EV-to-EBITDA is 10.98 as of Aug. 23, 2026, which is 39% below its 10-year median of 17.88. 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 1,965 Software companies, Tata Consultancy Services ranks worse than 52.77% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Tata Consultancy Services's enterprise value is ₹8,040,317 Mil.
Tata Consultancy Services's EBITDA for the trailing twelve months (TTM) ended in Jun. 2026 was ₹731,950 Mil. Therefore, Tata Consultancy Services's EV-to-EBITDA for today is 10.98.
The historical rank and industry rank for Tata Consultancy Services's EV-to-EBITDA or its related term are showing as below:
NSE:TCS'
s EV-to-EBITDA Range Over the Past 10 Years
Min: 10.08 Med: 17.88 Max: 27.97
Current: 10.98
During the past 13 years, the highest EV-to-EBITDA of Tata Consultancy Services was 27.97. The lowest was 10.08. And the median was 17.88.
NSE:TCS's EV-to-EBITDA is ranked worse than 52.77% of 1965
companies
in the Software industry
Industry Median: 10.46
vs NSE:TCS: 10.98
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Tata Consultancy Services's PE Ratio (TTM) for today is calculated as:
Tata Consultancy Services's share price for today is ₹2302.00.
Tata Consultancy Services's Earnings per Share (Diluted) 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 ₹137.660.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
* 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.
NSE:TCS vs IBM, ACN, FISV: EV-to-EBITDA Comparison
For the Information Technology Services subindustry, Tata Consultancy Services's EV-to-EBITDA, along with its competitors' market caps and EV-to-EBITDA 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-EBITDA vs Software Industry
For the Software industry and Technology sector, Tata Consultancy Services's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Tata Consultancy Services's EV-to-EBITDA falls into.
Tata Consultancy Services's current Enterprise Value is ₹8,040,317 Mil.
Tata Consultancy Services's EBITDA 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 ₹731,950 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-EBITDA of 10.98 as of Aug. 23, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Tata Consultancy Services. This is 39% below median its historical median of 17.88. Over the past decade, Tata Consultancy Services' EV-to-EBITDA has ranged from 10.08 to 27.97. According to the industry distribution chart, Tata Consultancy Services ranks #1037 out of 1965 companies in the Software industry, placing it in the top 52.8%.
Is Tata Consultancy Services' EV-to-EBITDA too high?
Tata Consultancy Services' current EV-to-EBITDA of 10.98 is 39% below median its 10-year median of 17.88. Over the past 10 years, this metric has ranged from a low of 10.08 to a high of 27.97. The Software industry median EV-to-EBITDA is 10.46. Tata Consultancy Services' value of 10.98 is 5% above this industry median. Based on the distribution chart, Tata Consultancy Services ranks #1037 out of 1965 companies in the Software industry, which is below 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-EBITDA compare to IBM and ACN?
According to the Software industry distribution chart, Tata Consultancy Services ranks #1037 out of 1965 companies for EV-to-EBITDA. This places Tata Consultancy Services in the lower half of its industry. The industry median EV-to-EBITDA is 10.46. Tata Consultancy Services' value of 10.98 is 5% above this benchmark. Historically, Tata Consultancy Services' own EV-to-EBITDA has ranged from 10.08 to 27.97 over the past decade. While the company's 10-year median is 17.88 vs. the industry median of 10.46, 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 EV-to-EBITDA for a Software company?
The median EV-to-EBITDA among Software companies is 10.46, based on 1,965 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Consultancy Services's current EV-to-EBITDA of 10.98 is 5% 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 EV-to-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Tata Consultancy Services. For the Software industry, the median EV-to-EBITDA is 10.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Consultancy Services's current EV-to-EBITDA is 10.98, which is 39% below median its own 10-year median of 17.88. 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-EBITDA is 10.98, which is 39% below median its 10-year median of 17.88 and 5% above the Software industry median of 10.46. 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-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Tata Consultancy Services (NSE:TCS), the current EV-to-EBITDA is 10.98 as of Aug. 23, 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-EBITDA: 10.98 (39% below median its 10-year median of 17.88)
GF Value™: ₹4,070.43 vs. price of ₹2,302.00 (43.4% below fair value)
Industry Position: 5% above the Software median (#1037 of 1965)
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
Get the complete analysis for NSE:TCS
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