TCS

Hi Vanessa,

TCS is pulling back much like every other tech company. I think it is a solid company and one worth looking into. However, the company remains price with a P/E above 90 that only drops to 80 next year. It looks decent when compare to revenue (~5.4x) and has a reasonable EV/EBITDA ratio of 5.20.

Against its own historical averages, it once again looks expensive. It is trading at a steep premium to historical averages. It is a tough one to value as it looks cheap against the industry but expensive against itself. Growth is expected to be pretty strong in the mid to high teens from both a revenue and EPS perspective.

All things considered, I'd say it is close to fairly valued here. I do like the company and the space in which it operates.

Mat