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Tata Consultancy ServicesNSE:TCS +0.39%87 ROC (Joel Greenblatt) % is 180.10% as of Jun. 2026, which is 13% above its 10-year median of 160.05. GuruFocus rates NSE:TCS with a GF Score™ of 87/100 and a GF Value™ of ₹4,069.64 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,822 Software companies, Tata Consultancy Services ranks better than 81.5% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Tata Consultancy Services's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 180.10%.
The historical rank and industry rank for Tata Consultancy Services's ROC (Joel Greenblatt) % or its related term are showing as below:
NSE:TCS'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 119.91 Med: 160.05 Max: 234.19
Current: 175.39
During the past 13 years, Tata Consultancy Services's highest ROC (Joel Greenblatt) % was 234.19%. The lowest was 119.91%. And the median was 160.05%.
NSE:TCS's ROC (Joel Greenblatt) % is ranked better than 81.5% of 2822
companies
in the Software industry
Industry Median: 21.005
vs NSE:TCS: 175.39
Tata Consultancy Services's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 7.70% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Tata Consultancy Services ROC (Joel Greenblatt) % Related Terms
Tata Consultancy Services ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Tata Consultancy Services's ROC (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.
NSE:TCS vs IBM, ACN, FISV: ROC (Joel Greenblatt) % Comparison
For the Information Technology Services subindustry, Tata Consultancy Services's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (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 ROC (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, Tata Consultancy Services's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Tata Consultancy Services's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Jun. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 180.10% mean?
Tata Consultancy Services (NSE:TCS) has a ROC (Joel Greenblatt) % of 180.10% as of Jun. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Tata Consultancy Services and its competitors. This is 13% above median its historical median of 160.05. Over the past decade, Tata Consultancy Services' ROC (Joel Greenblatt) % has ranged from 119.91 to 234.19. According to the industry distribution chart, Tata Consultancy Services ranks #522 out of 2822 companies in the Software industry, placing it in the top 18.5%.
Is Tata Consultancy Services' ROC (Joel Greenblatt) % too high?
Tata Consultancy Services' current ROC (Joel Greenblatt) % of 180.10% is 13% above median its 10-year median of 160.05. Over the past 10 years, this metric has ranged from a low of 119.91 to a high of 234.19. The Software industry median ROC (Joel Greenblatt) % is 21.01. Tata Consultancy Services' value of 180.10% is 757.4% above this industry median. Based on the distribution chart, Tata Consultancy Services ranks #522 out of 2822 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 87/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tata Consultancy Services' ROC (Joel Greenblatt) % compare to IBM and ACN?
According to the Software industry distribution chart, Tata Consultancy Services ranks #522 out of 2822 companies for ROC (Joel Greenblatt) %. This places Tata Consultancy Services in the top 19% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 21.01. Tata Consultancy Services' value of 180.10% is 757.4% above this benchmark. Historically, Tata Consultancy Services' own ROC (Joel Greenblatt) % has ranged from 119.91 to 234.19 over the past decade. While the company's 10-year median is 160.05 vs. the industry median of 21.01, 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 ROC (Joel Greenblatt) % for a Software company?
The median ROC (Joel Greenblatt) % among Software companies is 21.01, based on 2,822 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Consultancy Services's current ROC (Joel Greenblatt) % of 180.10% is 757.4% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Tata Consultancy Services and its competitors. For the Software industry, the median ROC (Joel Greenblatt) % is 21.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Consultancy Services's current ROC (Joel Greenblatt) % is 180.10%, which is 13% above median its own 10-year median of 160.05. 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 ₹4,069.64, compared to a current price of ₹2,302.00 — trading 43.4% below its estimated fair value. The current ROC (Joel Greenblatt) % is 180.10%, which is 13% above median its 10-year median of 160.05 and 757.4% above the Software industry median of 21.01. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Tata Consultancy Services (NSE:TCS), the current ROC (Joel Greenblatt) % is 180.10% 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 ₹2,302.00 is trading 43.4% below its estimated GF Value™ of ₹4,069.64.
GuruFocus considers Tata Consultancy Services to be Significantly Undervalued.
Key valuation signals for NSE:TCS:
ROC (Joel Greenblatt) %: 180.10% (13% above median its 10-year median of 160.05)
GF Value™: ₹4,069.64 vs. price of ₹2,302.00 (43.4% below fair value)
Industry Position: 757.4% above the Software median (#522 of 2822)
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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