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Tata Consultancy ServicesNSE:TCS +0.17%87 PB Ratio is 7.77 as of Aug. 22, 2026, which is 27% below its 10-year median of 10.71. 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 2,630 Software companies, Tata Consultancy Services ranks worse than 87% on this metric.
The historical rank and industry rank for Tata Consultancy Services's PB Ratio or its related term are showing as below:
NSE:TCS'
s PB Ratio Range Over the Past 10 Years
Min: 5.2 Med: 10.71 Max: 17.46
Current: 7.76
During the past 13 years, Tata Consultancy Services's highest PB Ratio was 17.46. The lowest was 5.20. And the median was 10.71.
NSE:TCS's PB Ratio is ranked worse than 87% of 2630
companies
in the Software industry
Industry Median: 2.49
vs NSE:TCS: 7.76
During the past 12 months, Tata Consultancy Services's average Book Value Per Share Growth Rate was 13.20% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 6.20% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was 4.10% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was 3.40% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Tata Consultancy Services was 50.40% per year. The lowest was 0.70% per year. And the median was 20.30% per year.
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
Tata Consultancy Services PB Ratio Related Terms
Tata Consultancy Services PB Ratio 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 PB Ratio, along with its competitors' market caps and PB Ratio 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 PB Ratio vs Software Industry
For the Software industry and Technology sector, Tata Consultancy Services's PB Ratio distribution charts can be found below:
* The bar in red indicates where Tata Consultancy Services's PB Ratio falls into.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
* 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.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
Tata Consultancy Services (NSE:TCS) has a PB Ratio of 7.77 as of Aug. 22, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Tata Consultancy Services and its competitors. This is 27% below median its historical median of 10.71. Over the past decade, Tata Consultancy Services' PB Ratio has ranged from 5.20 to 17.46. According to the industry distribution chart, Tata Consultancy Services ranks #2288 out of 2630 companies in the Software industry, placing it in the top 87%.
Is Tata Consultancy Services' PB Ratio too high?
Tata Consultancy Services' current PB Ratio of 7.77 is 27% below median its 10-year median of 10.71. Over the past 10 years, this metric has ranged from a low of 5.20 to a high of 17.46. The Software industry median PB Ratio is 2.49. Tata Consultancy Services' value of 7.77 is 212% above this industry median. Based on the distribution chart, Tata Consultancy Services ranks #2288 out of 2630 companies in the Software industry, which is in the bottom quartile relative to peers. 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' PB Ratio compare to IBM and ACN?
According to the Software industry distribution chart, Tata Consultancy Services ranks #2288 out of 2630 companies for PB Ratio. This places Tata Consultancy Services in the lower half of its industry. The industry median PB Ratio is 2.49. Tata Consultancy Services' value of 7.77 is 212% above this benchmark. Historically, Tata Consultancy Services' own PB Ratio has ranged from 5.20 to 17.46 over the past decade. While the company's 10-year median is 10.71 vs. the industry median of 2.49, 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 PB Ratio for a Software company?
The median PB Ratio among Software companies is 2.49, based on 2,630 companies in the industry. Companies in the top quartile (top 25%) have a PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Consultancy Services's current PB Ratio of 7.77 is 212% 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 PB Ratio mean?
A high PB Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Tata Consultancy Services and its competitors. For the Software industry, the median PB Ratio is 2.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Consultancy Services's current PB Ratio is 7.77, which is 27% below median its own 10-year median of 10.71. 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 PB Ratio is 7.77, which is 27% below median its 10-year median of 10.71 and 212% above the Software industry median of 2.49. 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 PB Ratio calculated?
PB Ratio is calculated from a company's financial statements. For Tata Consultancy Services (NSE:TCS), the current PB Ratio is 7.77 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 (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:
PB Ratio: 7.77 (27% below median its 10-year median of 10.71)
GF Value™: ₹4,070.43 vs. price of ₹2,302.00 (43.4% below fair value)
Industry Position: 212% above the Software median (#2288 of 2630)
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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