Financial Statement Analysis and Business Valuation of Tcs
Financial Statement Analysis and Business Valuation of TCS
By:
Prashant Chaudhary
Table of Contents About TCS 3 Calculation of Beta 3 Cost of Capital 4 Concepts of Cost of Capital 4 Weighted Average Cost of Capital 6 Financial Ratios 8 Liquidity Ratios 8 Solvency Ratios 8 Profitability Ratios 9 Comparison with Competitors in the Industry 10 Free Cash Flow 11 Sales forecast 13 Reformulated balance sheet 14 Reformulated Income Statement 15 Appendix A: Balance Sheet 16 Appendix B: Profit & Loss account (in Rs. Crores) 17 Appendix C: Cash Flow (in Rs. Crores) 19
About TCS
Tata Consultancy Services (TCS) is Software services consulting company headquartered in Mumbai, India. TCS is the largest provider of information technology and business process outsourcing services in Asia. TCS has offices in 42 countries with more than 142 branches across the globe. The company is listed on the National Stock Exchange and Bombay Stock Exchange of India.
TCS is a flagship subsidiary of one of India's largest and oldest conglomerate company, the Tata Group, which has interests in areas such as energy, telecommunications, financial services, manufacturing, chemicals, engineering, materials, government and healthcare.
Calculation of Beta
The beta (β) of a stock or portfolio is a number describing the relation of its returns with that of the financial market as a whole.
An asset with a beta of 0 signifies that its’ returns change independently of changes in the market's returns. A positive beta indicates that the asset's returns generally follow the market's returns, in the sense that they both tend to be above their respective averages together, or both tend to be below their respective averages together. A negative beta implies that the asset's returns generally move opposite to the market's returns: one will tend to be above its average when the other is below its average. The beta coefficient is a key
By:
Prashant Chaudhary
Table of Contents About TCS 3 Calculation of Beta 3 Cost of Capital 4 Concepts of Cost of Capital 4 Weighted Average Cost of Capital 6 Financial Ratios 8 Liquidity Ratios 8 Solvency Ratios 8 Profitability Ratios 9 Comparison with Competitors in the Industry 10 Free Cash Flow 11 Sales forecast 13 Reformulated balance sheet 14 Reformulated Income Statement 15 Appendix A: Balance Sheet 16 Appendix B: Profit & Loss account (in Rs. Crores) 17 Appendix C: Cash Flow (in Rs. Crores) 19
About TCS
Tata Consultancy Services (TCS) is Software services consulting company headquartered in Mumbai, India. TCS is the largest provider of information technology and business process outsourcing services in Asia. TCS has offices in 42 countries with more than 142 branches across the globe. The company is listed on the National Stock Exchange and Bombay Stock Exchange of India.
TCS is a flagship subsidiary of one of India's largest and oldest conglomerate company, the Tata Group, which has interests in areas such as energy, telecommunications, financial services, manufacturing, chemicals, engineering, materials, government and healthcare.
Calculation of Beta
The beta (β) of a stock or portfolio is a number describing the relation of its returns with that of the financial market as a whole.
An asset with a beta of 0 signifies that its’ returns change independently of changes in the market's returns. A positive beta indicates that the asset's returns generally follow the market's returns, in the sense that they both tend to be above their respective averages together, or both tend to be below their respective averages together. A negative beta implies that the asset's returns generally move opposite to the market's returns: one will tend to be above its average when the other is below its average. The beta coefficient is a key