Tech Mahindra Intrinsic Value
TECHM Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹647.04 | ₹517.63 - ₹776.45 | -51.9% | EPS: ₹53.92, Sector P/E: 12x |
| Book Value Method | asset | ₹628.78 | ₹565.90 - ₹691.66 | -53.3% | Book Value/Share: ₹628.78, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹1016.11 | ₹914.50 - ₹1117.72 | -24.5% | Revenue/Share: ₹1270.14, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹1197.29 | ₹1077.56 - ₹1317.02 | -11.0% | EBITDA: ₹8820.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹1215.30 | ₹972.24 - ₹1458.36 | -9.7% | CF Growth: 5.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹403.62 | ₹363.26 - ₹443.98 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹444.30 | ₹399.87 - ₹488.73 | -67.0% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹1522.90 | ₹1370.61 - ₹1675.19 | +13.2% | ROE: 17.3%, P/E Multiple: 14x |
| Graham Defensive Method | conservative | ₹873.40 | ₹786.06 - ₹960.74 | -35.1% | EPS: ₹53.92, BVPS: ₹628.78 |
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Valuation Comparison Chart
TECHM Intrinsic Value Analysis
What is the intrinsic value of TECHM?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Tech Mahindra (TECHM) is ₹873.40 (median value). With the current market price of ₹1345.40, this represents a -35.1% variance from our estimated fair value.
The valuation range spans from ₹403.62 to ₹1522.90, indicating ₹403.62 - ₹1522.90.
Is TECHM undervalued or overvalued?
Based on our multi-method analysis, Tech Mahindra (TECHM) appears to be trading above calculated value by approximately 35.1%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 5.88 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Return on Equity | 17.3% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 15.0% | Industry Standard: 20%+ | Above 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 1.26x | Industry Standard: 1.0x+ | Above 1.0x | Measures asset utilization efficiency |
Related Pages for Tech Mahindra
Additional stock information and data for TECHM
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹5,786 Cr | ₹5,786 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹6,376 Cr | ₹5,717 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹5,572 Cr | ₹5,459 Cr | Positive Free Cash Flow | 8/10 |
| March 2022 | ₹5,285 Cr | ₹5,285 Cr | Positive Free Cash Flow | 8/10 |
| March 2021 | ₹8,094 Cr | ₹5,378 Cr | Positive Free Cash Flow | 8/10 |