TCS Stock Price Analysis and Quick Research Report. Is TCS an attractive stock to invest in?
Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.
Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements.
Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse TCS.
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PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). TCS has a PE ratio of 24.6862993026495 which is high and comparatively overvalued.
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Return on Assets (ROA): Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. TCS has ROA of 38.6382% which is a good sign for future performance. (Higher values are always desirable.)
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Current ratio: The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. TCS has a Current ratio of 2.0976.
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Return on equity: ROE measures the ability of a firm to generate profits from its shareholders' investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. TCS has a ROE of 65.5558%. (Higher is better)
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Debt to equity ratio: It is a good metric to check out the capital structure along with its performance. TCS has a Debt to Equity ratio of 0 which means that the company has low proportion of debt in its capital.
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Sales growth: TCS has reported revenue growth of 6.1742% which is poor in relation to its growth and performance.
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Operating Margin: This will tell you about the operational efficiency of the company. The operating margin of TCS for the current financial year is 26.962155520286%.
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Dividend Yield: It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for TCS is Rs 126 and the yield is 3.9094%.
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Earnings Per Share: It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of TCS is Rs 130.8094. The higher the EPS, the better it is for investors.
One can find all the Financial Ratios of TCS in Ticker for free. Also, one can get the intrinsic value of TCS by using Valuation Calculators, which are available with a Finology ONE subscription.
TCS FAQs
Q1. What is TCS share price today?
Ans: The current share price of TCS is Rs 3229.2.
Q2. What is the market capitalisation of TCS?
Ans: TCS has a market capitalisation of Rs 1168352.82131256 Cr., calculated based on its latest share price.
Q3. What are the P/E and P/B ratios of TCS?
Ans: The PE ratio of TCS is 24.6862993026495 and the P/B ratio of TCS is 13.8685426047968, showing how the stock is valued against its earnings and book value.
Q4. What is the 52-week high and low of TCS share?
Ans: The 52-week high share price of TCS is Rs 4494.9, and the 52-week low share price of TCS is Rs 2866.6.
Q5. Does TCS pay dividends?
Ans: Currently, TCS pays dividends. Dividend yield of TCS is around 3.9094%.
Q6. What are the face value and book value of TCS shares?
Ans: The face value of TCS shares is Rs 1, while the book value per share of TCS is around Rs 232.8435. Face value is the nominal value set by the company, whereas book value reflects its accounting worth.
Q7. What is the debt of TCS?
Ans: TCS has a total debt of Rs 0 Cr., which affects investor sentiment and financial stability.
Q8. What are the ROE and ROCE of TCS?
Ans: The ROE of TCS is 65.5558% and ROCE of TCS is 86.4188%. ROE shows how efficiently the company is generating profit from shareholders’ equity, while the ROCE is reflects how efficiently the company uses its capital to generate returns.
Q9. Is TCS a good buy for the long term?
Ans: The TCS long-term outlook depends on debt levels, earnings growth, and sector trends. If it sustains profits and manages debt well, it may be considered for long-term investment.
Q10. Is TCS undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the TCS appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.
Q11. How to check TCS’s financials?
Ans: You can review TCS’s financial statements - including balance sheet, income statement, and quarterly results - on Finology Ticker.