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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
As of Jun. 2026, Tata Consultancy Services has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Tata Consultancy Services (NSE:TCS) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Jun. 2026, Tata Consultancy Services has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Tata Consultancy Services Sloan Ratio % Related Terms
Tata Consultancy Services Sloan 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.
NSE:TCS vs IBM, ACN, CTSH: Sloan Ratio % Comparison
For the Information Technology Services subindustry, Tata Consultancy Services's Sloan Ratio %, along with its competitors' market caps and Sloan 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 Sloan Ratio % vs Software Industry
For the Software industry and Technology sector, Tata Consultancy Services's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Tata Consultancy Services's Sloan Ratio % falls into.
Tata Consultancy Services Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Tata Consultancy Services's Sloan Ratio for the fiscal year that ended in Mar. 2026 is calculated as
Tata Consultancy Services's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 120750 (Sep. 2025 ) + 106570 (Dec. 2025 ) + 137180 (Mar. 2026 ) + 133490 (Jun. 2026 ) = ₹497,990 Mil.
Tata Consultancy Services's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 130250 (Sep. 2025 ) + 132620 (Dec. 2025 ) + 138880 (Mar. 2026 ) + 0 (Jun. 2026 ) = ₹401,750 Mil.
Tata Consultancy Services's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -85450 (Sep. 2025 ) + -75640 (Dec. 2025 ) + 58840 (Mar. 2026 ) + 0 (Jun. 2026 ) = ₹-102,250 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 Sloan Ratio % of 0.00% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Tata Consultancy Services and its competitors.
Is Tata Consultancy Services' Sloan Ratio % too high?
Tata Consultancy Services' current Sloan Ratio % is 0.00%. Overall, Tata Consultancy Services has a GF Score™ of 91/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tata Consultancy Services' Sloan Ratio % compare to IBM and ACN?
Tata Consultancy Services' Sloan Ratio % of 0.00% can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Software company?
A good Sloan Ratio % depends on the Software industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Tata Consultancy Services and its competitors. Tata Consultancy Services's current Sloan Ratio % is 0.00%. 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 ₹4,082.90, compared to a current price of ₹2,304.00 — trading 43.6% below its estimated fair value. The current Sloan Ratio % is 0.00%. Tata Consultancy Services' overall GF Score™ is 91/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Tata Consultancy Services (NSE:TCS), the current Sloan Ratio % is 0.00% 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 ₹2,304.00 is trading 43.6% below its estimated GF Value™ of ₹4,082.90.
GuruFocus considers Tata Consultancy Services to be Significantly Undervalued.
Key valuation signals for NSE:TCS:
Sloan Ratio %: 0.00%
GF Value™: ₹4,082.90 vs. price of ₹2,304.00 (43.6% below fair value)
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.
91GF Score
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Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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