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Tata Consultancy ServicesBOM:532540 +0.24%87 EV-to-FCF is 16.77 as of Aug. 22, 2026, which is 41% below its 10-year median of 28.62. GuruFocus rates BOM:532540 with a GF Score™ of 87/100 and a GF Value™ of ₹4,075.54 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,600 Software companies, Tata Consultancy Services ranks worse than 54.19% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Tata Consultancy Services's Enterprise Value is ₹8,040,317 Mil.
Tata Consultancy Services's Free Cash Flow for the trailing twelve months (TTM) ended in Jun. 2026 was ₹479,480 Mil. Therefore, Tata Consultancy Services's EV-to-FCF for today is 16.77.
The historical rank and industry rank for Tata Consultancy Services's EV-to-FCF or its related term are showing as below:
BOM:532540'
s EV-to-FCF Range Over the Past 10 Years
Min: 15.19 Med: 28.62 Max: 40.79
Current: 17.21
During the past 13 years, the highest EV-to-FCF of Tata Consultancy Services was 40.79. The lowest was 15.19. And the median was 28.62.
BOM:532540's EV-to-FCF is ranked worse than 54.19% of 1600
companies
in the Software industry
Industry Median: 15.56
vs BOM:532540: 17.21
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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.
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 ₹2298.00.
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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Tata Consultancy Services EV-to-FCF Related Terms
Tata Consultancy Services EV-to-FCF 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.
BOM:532540 vs IBM, ACN, FISV: EV-to-FCF Comparison
For the Information Technology Services subindustry, Tata Consultancy Services's EV-to-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Software Industry
For the Software industry and Technology sector, Tata Consultancy Services's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Tata Consultancy Services's EV-to-FCF falls into.
Tata Consultancy Services's current Enterprise Value is ₹8,040,317 Mil.
Tata Consultancy Services's Free Cash Flow 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 ₹479,480 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 (BOM:532540) has a EV-to-FCF of 16.77 as of Aug. 22, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Tata Consultancy Services and its competitors. This is 41% below median its historical median of 28.62. Over the past decade, Tata Consultancy Services' EV-to-FCF has ranged from 15.19 to 40.79. According to the industry distribution chart, Tata Consultancy Services ranks #867 out of 1600 companies in the Software industry, placing it in the top 54.2%.
Is Tata Consultancy Services' EV-to-FCF too high?
Tata Consultancy Services' current EV-to-FCF of 16.77 is 41% below median its 10-year median of 28.62. Over the past 10 years, this metric has ranged from a low of 15.19 to a high of 40.79. The Software industry median EV-to-FCF is 15.56. Tata Consultancy Services' value of 16.77 is 7.8% above this industry median. Based on the distribution chart, Tata Consultancy Services ranks #867 out of 1600 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-FCF compare to IBM and ACN?
According to the Software industry distribution chart, Tata Consultancy Services ranks #867 out of 1600 companies for EV-to-FCF. This places Tata Consultancy Services in the lower half of its industry. The industry median EV-to-FCF is 15.56. Tata Consultancy Services' value of 16.77 is 7.8% above this benchmark. Historically, Tata Consultancy Services' own EV-to-FCF has ranged from 15.19 to 40.79 over the past decade. While the company's 10-year median is 28.62 vs. the industry median of 15.56, 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-FCF for a Software company?
The median EV-to-FCF among Software companies is 15.56, based on 1,600 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Consultancy Services's current EV-to-FCF of 16.77 is 7.8% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Tata Consultancy Services and its competitors. For the Software industry, the median EV-to-FCF is 15.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Consultancy Services's current EV-to-FCF is 16.77, which is 41% below median its own 10-year median of 28.62. 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 (BOM:532540) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹4,075.54, compared to a current price of ₹2,298.00 — trading 43.6% below its estimated fair value. The current EV-to-FCF is 16.77, which is 41% below median its 10-year median of 28.62 and 7.8% above the Software industry median of 15.56. 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-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Tata Consultancy Services (BOM:532540), the current EV-to-FCF is 16.77 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 (BOM:532540) Overvalued in 2026?
Based on GuruFocus' analysis, Tata Consultancy Services stock appears to be undervalued.
The current stock price of ₹2,298.00 is trading 43.6% below its estimated GF Value™ of ₹4,075.54.
GuruFocus considers Tata Consultancy Services to be Significantly Undervalued.
Key valuation signals for BOM:532540:
EV-to-FCF: 16.77 (41% below median its 10-year median of 28.62)
GF Value™: ₹4,075.54 vs. price of ₹2,298.00 (43.6% below fair value)
Industry Position: 7.8% above the Software median (#867 of 1600)
No single metric tells the full story. See the BOM:532540 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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