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Tata Consultancy ServicesBOM:532540 +0.24%87 3-Year ROIIC % is 31.93 as of Mar. 2026, which is 45% below its 10-year median of 57.61. GuruFocus rates BOM:532540 with a GF Score™ of 87/100 and a GF Value™ of ₹4,063.36 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,624 Software companies, Tata Consultancy Services ranks better than 75.5% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Tata Consultancy Services's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was 31.93%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Tata Consultancy Services's 3-Year ROIIC % or its related term are showing as below:
BOM:532540's 3-Year ROIIC % is ranked better than 75.5% of 2624
companies
in the Software industry
Industry Median: 5.03
vs BOM:532540: 31.93
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Tata Consultancy Services 3-Year ROIIC % Related Terms
Tata Consultancy Services 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Information Technology Services subindustry, Tata Consultancy Services's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Software Industry
For the Software industry and Technology sector, Tata Consultancy Services's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Tata Consultancy Services's 3-Year ROIIC % falls into.
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Tata Consultancy Services (BOM:532540) has a 3-Year ROIIC % of 31.93 as of Mar. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Tata Consultancy Services and its competitors. This is 45% below median its historical median of 57.61. Over the past decade, Tata Consultancy Services' 3-Year ROIIC % has ranged from 29.92 to 141.51. According to the industry distribution chart, Tata Consultancy Services ranks #643 out of 2624 companies in the Software industry, placing it in the top 24.5%.
Is Tata Consultancy Services' 3-Year ROIIC % too high?
Tata Consultancy Services' current 3-Year ROIIC % of 31.93 is 45% below median its 10-year median of 57.61. Over the past 10 years, this metric has ranged from a low of 29.92 to a high of 141.51. The Software industry median 3-Year ROIIC % is 5.03. Tata Consultancy Services' value of 31.93 is 534.8% above this industry median. Based on the distribution chart, Tata Consultancy Services ranks #643 out of 2624 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' 3-Year ROIIC % compare to IBM and ACN?
According to the Software industry distribution chart, Tata Consultancy Services ranks #643 out of 2624 companies for 3-Year ROIIC %. This places Tata Consultancy Services in the top 25% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 5.03. Tata Consultancy Services' value of 31.93 is 534.8% above this benchmark. Historically, Tata Consultancy Services' own 3-Year ROIIC % has ranged from 29.92 to 141.51 over the past decade. While the company's 10-year median is 57.61 vs. the industry median of 5.03, 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 3-Year ROIIC % for a Software company?
The median 3-Year ROIIC % among Software companies is 5.03, based on 2,624 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Consultancy Services's current 3-Year ROIIC % of 31.93 is 534.8% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Tata Consultancy Services and its competitors. For the Software industry, the median 3-Year ROIIC % is 5.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Consultancy Services's current 3-Year ROIIC % is 31.93, which is 45% below median its own 10-year median of 57.61. 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 ₹4,063.36, compared to a current price of ₹2,298.00 — trading 43.4% below its estimated fair value. The current 3-Year ROIIC % is 31.93, which is 45% below median its 10-year median of 57.61 and 534.8% above the Software industry median of 5.03. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Tata Consultancy Services (BOM:532540), the current 3-Year ROIIC % is 31.93 as of Mar. 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 43.4% below its estimated GF Value™ of ₹4,063.36.
GuruFocus considers Tata Consultancy Services to be Significantly Undervalued.
Key valuation signals for BOM:532540:
3-Year ROIIC %: 31.93 (45% below median its 10-year median of 57.61)
GF Value™: ₹4,063.36 vs. price of ₹2,298.00 (43.4% below fair value)
Industry Position: 534.8% above the Software median (#643 of 2624)
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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