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The market asks roughly as much of Infosys as of Tata Consultancy Services.
At current prices, buyers of Infosys are assuming about 0% growth against 8% 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 1.9 times Infosys on the stock market.
- Record: Infosys has grown revenue faster: Infosys compounded at about 12% a year (FY2019–FY2026) and Tata Consultancy Services at about 9% (FY2019–FY2026).
- What to watch: large deal wins at Infosys; growth in constant currency at Tata Consultancy Services.
| Infosys | Tata Consultancy Services | |
|---|---|---|
| Price | ₹1,142 | ₹2,408 |
| Market cap | ₹4.63L Cr | ₹8.72L Cr |
| P/E | 15.0 | 16.9 |
| P/B | 4.98 | 8.13 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Discounted cash flow |
01Two businesses
What Infosys sells, and to whom
Infosys, founded in Pune in 1981 by N. R. Narayana Murthy and six co-founders and now based in Bengaluru, is India's second-largest IT services company. It runs digital transformation, cloud, data and AI programmes for large companies, mainly in North America and Europe, and owns Finacle, a core-banking platform used by banks worldwide.
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
Infosys has grown revenue faster: Infosys compounded at about 12% a year (FY2019–FY2026) and Tata Consultancy Services at about 9% (FY2019–FY2026). By revenue, Tata Consultancy Services is about 1.5 times the size of Infosys. Infosys kept 16.5% 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: Infosys · 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
- Large deal winsBig multi-year contracts give visibility, but they often start at lower margins.
- Operating marginWage increases and pricing pressure can push margins below the company's own target range.
- 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
- Financial-services concentrationBanks are its largest client group, so a banking slowdown hits Infosys first.
- AI deflationAutomation could shrink the hours clients pay for faster than new AI work replaces them.
- 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 Infosys 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, Infosys trades at 15.0 times earnings and 4.98 times book value, and Tata Consultancy Services at 16.9 times earnings and 8.13 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 Infosys and Tata Consultancy Services?
Infosys, founded in Pune in 1981 by N. Tata Consultancy Services is India's largest IT services company and part of the Tata group, which holds the majority of its shares.
Are Infosys 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 Infosys and Tata Consultancy Services?
Worked backwards from the share price, Infosys needs about 0% growth and Tata Consultancy Services about 0% growth, against 8% and 7% in their own records.