Build a valuation range from TCS data
Valuation capstone · Reported figures with model assumptions
The situation
TCS reported FY 2025–26 consolidated revenue from operations of ₹267,021 crore and EBIT before other income of ₹66,838 crore. Use those reported figures to anchor the margin check. The following cash-flow assumptions are fictional teaching inputs, in ₹ crore: base year-one FCFF 45,000 and year-two onward 46,000, downside year-one FCFF 35,000 and year-two onward 36,000. Assume 10% WACC and zero growth in both cases. Values are for operations before equity bridge adjustments.
TCS FY 2025–26 annual report · consolidated financial results1. Work out the numbers
What FY 2025–26 operating margin do the reported figures imply?
2. Make the decision
What range do the fictional assumptions imply for operating value, rounded to the nearest crore?
Complete the calculation above to unlock this decision.