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The market asks roughly as much of Persistent Systems as of Tata Consultancy Services.
At current prices, buyers of Persistent Systems are assuming about 15% growth against 23% 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 9.2 times Persistent Systems on the stock market.
- Record: Persistent Systems has grown revenue faster: Persistent Systems compounded at about 23% a year (FY2019–FY2026) and Tata Consultancy Services at about 9% (FY2019–FY2026).
- What to watch: revenue growth at Persistent Systems; growth in constant currency at Tata Consultancy Services.
| Persistent Systems | Tata Consultancy Services | |
|---|---|---|
| Price | ₹6,003 | ₹2,408 |
| Market cap | ₹0.95L Cr | ₹8.72L Cr |
| P/E | 71.7 | 16.9 |
| P/B | 12.08 | 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
Software engineering from Pune
Persistent Systems was founded in Pune in 1990 by Anand Deshpande. It began as a product-engineering company building software for technology firms, and now provides digital engineering, cloud, data and AI services to banks, healthcare and technology companies.
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
Persistent Systems has grown revenue faster: Persistent Systems compounded at about 23% a year (FY2019–FY2026) and Tata Consultancy Services at about 9% (FY2019–FY2026). By revenue, Tata Consultancy Services is about 18.1 times the size of Persistent Systems. Persistent Systems kept 12.6% 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: Persistent Systems · 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
- Revenue growthLarge deal wins sustain growth well above the industry.
- MarginsHolding margins while growing fast is the key test.
- 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
- Slowing growthA slowdown matters more for a company priced for growth.
- Client budgetsDiscretionary IT spending is cut first in a downturn.
- 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 Persistent Systems 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, Persistent Systems trades at 71.7 times earnings and 12.08 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 Persistent Systems and Tata Consultancy Services?
Persistent Systems was founded in Pune in 1990 by Anand Deshpande. Tata Consultancy Services is India's largest IT services company and part of the Tata group, which holds the majority of its shares.
Are Persistent Systems 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 Persistent Systems and Tata Consultancy Services?
Worked backwards from the share price, Persistent Systems needs about 15% growth and Tata Consultancy Services about 0% growth, against 23% and 7% in their own records.