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Today's prices ask more of Tata Consultancy Services than of Coforge.
At current prices, buyers of Coforge are assuming about 14% growth against 28% in its own record; for Tata Consultancy Services it is 0% against 7%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: both on discounted cash flow.
- Size: Tata Consultancy Services is worth about 9.8 times Coforge on the stock market.
- Record: Coforge has grown revenue faster: Coforge compounded at about 24% a year (FY2018–FY2026) and Tata Consultancy Services at about 9% (FY2019–FY2026).
- What to watch: deal wins at Coforge; growth in constant currency at Tata Consultancy Services.
| Coforge | Tata Consultancy Services | |
|---|---|---|
| Price | ₹2,034 | ₹2,442 |
| Market cap | ₹0.90L Cr | ₹8.84L Cr |
| P/E | 46.7 | 17.1 |
| P/B | 9.45 | 8.24 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Discounted cash flow |
01Two businesses
From NIIT Technologies to Coforge
Coforge was known as NIIT Technologies until 2020, when private-equity owner Baring renamed it. It provides IT services to banks, insurers and travel and transport companies, mainly in the US and Europe.
How TCS makes its money
Tata Consultancy Services is India's largest IT services company and part of the Tata group, which holds the majority of its shares. It builds and runs software, cloud and data systems for large companies around the world, with banking and financial services its biggest industry and North America its largest market.
02The records side by side
Coforge has grown revenue faster: Coforge compounded at about 24% a year (FY2018–FY2026) and Tata Consultancy Services at about 9% (FY2019–FY2026). By revenue, Tata Consultancy Services is about 16.3 times the size of Coforge. Coforge kept 10.6% of revenue as net profit in FY2026; Tata Consultancy Services kept 18.5% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: Coforge · Tata Consultancy Services.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Deal winsLarge contracts sustain fast growth.
- Acquisition integrationBought companies need to grow profitably.
- Growth in constant currencyTCS earns mostly in dollars, pounds and euros. Constant-currency growth shows how demand is holding up; the rupee then adds to or subtracts from it.
- Operating marginTCS has held one of the highest margins in the industry. On revenue this size, every point of margin is worth thousands of crores of profit.
05What could go wrong
- IntegrationAcquisitions can dilute margins.
- Client concentrationA few large clients matter a lot.
- Client budget cutsBanks and retailers in the US and Europe trim discretionary IT spending first in a downturn.
- Visa and immigration costsHigher costs for US work visas make onsite delivery more expensive.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is Coforge or Tata Consultancy Services better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, Coforge trades at 46.7 times earnings and 9.45 times book value, and Tata Consultancy Services at 17.1 times earnings and 8.24 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between Coforge and Tata Consultancy Services?
Coforge was known as NIIT Technologies until 2020, when private-equity owner Baring renamed it. Tata Consultancy Services is India's largest IT services company and part of the Tata group, which holds the majority of its shares.
Are Coforge and Tata Consultancy Services valued the same way?
Yes — both on discounted cash flow, so their workings compare like for like.
What does today's price assume for Coforge and Tata Consultancy Services?
Worked backwards from the share price, Coforge needs about 14% growth and Tata Consultancy Services about 0% growth, against 28% and 7% in their own records.