TCS.NS

Fairly Valued

Tata Consultancy Services Limited — PEG Ratio Analysis

1.76

PEG Ratio

1.76

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$2258.90

TTM EPS

$136.01

P/E Ratio

16.61

Growth Rate

9.4%

5-Year EPS CAGR

Sector

Technology

Information Technology Services

Calculated

6/17/2026

9:05:40 AM

Peer Comparison

Sample Size

5 peers

Industry Median PEG

2.86

25th Percentile

2.37

75th Percentile

5.25

TCS.NS PEG (1.76) vs Industry Median (2.86): 38% discount

Symbol	Company	PEG	P/E	Growth	vs TCS.NS
ICICIBANK.NS	ICICI Bank Limited	0.74	16.8	22.7%	-58%
RELIANCE.NS	Reliance Industries Limited	2.37	22.1	9.3%	+34%
WIPRO.NS	Wipro Limited	2.86	16.2	5.7%	+62%
HDFCBANK.NS	HDFC Bank Limited	5.25	15.1	2.9%	+198%
INFY.NS	Infosys Limited	264.24	1451.1	5.5%	+14888%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.