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TATA CONSULTANCY SERVICES
PE (Price/Earnings) Ratio

The Current P/E Ratio of TATA CONSULTANCY SERVICES is 30.32.

Share Price ₹3,863.5Apr 18,2024
Market Cap ₹1,397,852.9 Cr
Earnings-TTM₹46,099.0 CrTTM-Consolidated Results
Price/Earnings30.32xCalculated as Market Cap/Earnings
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Definition & Calculation of PE (Price/Earnings) ratio of TATA CONSULTANCY SERVICES

Price-to-Earnings ratio, P/E Multiple, or P/E Ratio is an important valuation multiple that is defined as:

P/E = Market Capitalization / Net Income

or, using per-share numbers:

P/E = Stock Price / Earnings Per Share (EPS)

Applying the above formula, P/E ratio of TATA CONSULTANCY SERVICES is calculated as :

Current Market Cap [ ₹1,397,852.9 Cr] as on Apr 18,2024

(/) Earnings [ ₹46,099.0 Cr] based on TTM-Consolidated Results

(=) P/E Ratio [ 30.32x ]

P/E Ratio indicates the multiple of earnings investors are willing to pay to own one share of the company.

Thus, for TATA CONSULTANCY SERVICES , the investors are currently willing to pay 30.32 times earnings to own 1 share of the company.

PE Multiples are the most widely used valuation multiple in practice.

Since P/E ratio uses Net Income in the calculation, P/E multiples are not always reliable for valuing companies with negative earnings.

In such cases, you may consider using Price to Book ratio or Price to Sales ratio of TATA CONSULTANCY SERVICES !

P/E ratios, also, would not adjust for differences in the capital structure between companies.

The chart below summarizes the trend in P/E Ratio of TATA CONSULTANCY SERVICES over the last five years.

Historical PE (Price/Earnings) ratio chart of TATA CONSULTANCY SERVICES


PE Ratio Performance Analysis for TATA CONSULTANCY SERVICES

- TATA CONSULTANCY SERVICES 's latest p/e ratio is 30.32x.

- TATA CONSULTANCY SERVICES 's p/e ratio for fiscal years ending Mar2024 to Mar2020 averaged 30.31x.

- TATA CONSULTANCY SERVICES 's operated at median p/e ratio of 30.62x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, TATA CONSULTANCY SERVICES 's p/e ratio peaked in Mar2021 at 36.25x.

- TATA CONSULTANCY SERVICES 's p/e ratio hit its five-year low in Mar2020 of 21.14x.


How does TATA CONSULTANCY SERVICES 's P/E Ratio benchmark against top 10 peers in IT - Software Industry?

Peer Comparison (IT - Software Industry)Earnings-TTM (Cr)PE RatioMarket Cap
TATA CONSULTANCY SERVICES 46,099.0030.321,397,852.9
INFOSYS LTD26,248.0022.46589,652.0
HCL TECHNOLOGIES LTD15,696.0025.37398,271.0
WIPRO LTD11,350.1020.45232,158.0
LTIMINDTREE LTD4,598.0030.31139,345.0
TECH MAHINDRA LTD2,858.5040.32115,243.0
ORACLE FINANCIAL SERVICES SOFTWARE LTD2,138.5431.2966,911.7
PERSISTENT SYSTEMS LTD1,029.6857.4759,174.5
L&T TECHNOLOGY SERVICES LTD1,275.7043.7455,796.3
TATA ELXSI LTD796.8258.5646,664.7
MPHASIS LTD1,566.9128.1844,160.0

IT - Software Industry Benchmark (Top 10) PE Analysis vs TATA CONSULTANCY SERVICES 's P/E Ratio

Top 10 Industry PeersPE Ratio
Min industry PE 20.45x
Max industry PE 58.56x
Median industry PE 30.32x
Average industry PE 35.32x



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