Tera Software Intrinsic Value

TERASOFT • Information Technology
Current Stock Price
₹405.85
Primary Intrinsic Value
₹252.00
Market Cap
₹527.6 Cr
-53.8% Downside
Median Value
₹187.69
Value Range
₹94 - ₹345
Assessment
Trading Above Calculated Value
Safety Margin
-100.0%

TERASOFT Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹252.00 ₹201.60 - ₹302.40 -37.9% EPS: ₹21.00, Sector P/E: 12x
Book Value Method asset ₹93.85 ₹84.47 - ₹103.23 -76.9% Book Value/Share: ₹93.85, P/B: 1.0x
Revenue Multiple Method revenue ₹177.23 ₹159.51 - ₹194.95 -56.3% Revenue/Share: ₹221.54, P/S: 0.8x
EBITDA Multiple Method earnings ₹203.08 ₹182.77 - ₹223.39 -50.0% EBITDA: ₹44.00Cr, EV/EBITDA: 6x
PEG Ratio Method growth ₹134.40 ₹120.96 - ₹147.84 -66.9% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹173.04 ₹155.74 - ₹190.34 -57.4% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹344.62 ₹310.16 - ₹379.08 -15.1% ROE: 23.0%, P/E Multiple: 16x
Graham Defensive Method conservative ₹187.69 ₹168.92 - ₹206.46 -53.8% EPS: ₹21.00, BVPS: ₹93.85
Method Types: Earnings Asset DCF Growth Dividend Conservative

Want to compare with current market value? Check TERASOFT share price latest .

Valuation Comparison Chart

TERASOFT Intrinsic Value Analysis

What is the intrinsic value of TERASOFT?

Based on our comprehensive analysis using 8 different valuation methods, the estimated intrinsic value of Tera Software (TERASOFT) is ₹187.69 (median value). With the current market price of ₹405.85, this represents a -53.8% variance from our estimated fair value.

The valuation range spans from ₹93.85 to ₹344.62, indicating ₹93.85 - ₹344.62.

Is TERASOFT undervalued or overvalued?

Based on our multi-method analysis, Tera Software (TERASOFT) appears to be trading above calculated value by approximately 53.8%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 59.00 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 1.75 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 23.0% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 14.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 1.35x Industry Standard: 1.0x+ Above 1.0x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹7 Cr ₹7 Cr Positive Free Cash Flow 8/10
March 2024 ₹-3 Cr ₹-3 Cr Negative Cash Flow 3/10