Tech Mahindra Intrinsic Value
Tech Mahindra intrinsic value. Tech Mahindra (TECHM) median intrinsic value is ₹1074.20 from 10 valuation models (range ₹463–₹1714), vs current price ₹1543.50 — -30.4% downside (Trading Above Calculated Value), margin of safety -43.7%. For current market price and key ratios, visit TECHM share price.
TECHM Valuation Methods Summary — DCF, Graham Number & P/E
Tech Mahindra intrinsic value across 10 models vs current price ₹1543.50 — upside/downside and value range per method. Compare with TECHM stock valuation models to assess whether the stock is under or overvalued.
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹732.96 | ₹586.37 - ₹879.55 | -52.5% | EPS: ₹61.08, Sector P/E: 12x |
| Book Value Method | asset | ₹678.94 | ₹611.05 - ₹746.83 | -56.0% | Book Value/Share: ₹678.94, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹1074.20 | ₹966.78 - ₹1181.62 | -30.4% | Revenue/Share: ₹1342.75, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹1279.10 | ₹1151.19 - ₹1407.01 | -17.1% | EBITDA: ₹9444.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹1241.62 | ₹993.30 - ₹1489.94 | -19.6% | CF Growth: 4.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹463.05 | ₹416.75 - ₹509.36 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹503.30 | ₹452.97 - ₹553.63 | -67.4% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹1714.13 | ₹1542.72 - ₹1885.54 | +11.1% | ROE: 18.0%, P/E Multiple: 14x |
| Graham Defensive Method | conservative | ₹965.95 | ₹869.36 - ₹1062.55 | -37.4% | EPS: ₹61.08, BVPS: ₹678.94 |
| Dividend Yield Method | dividend | ₹1457.14 | ₹1311.43 - ₹1602.85 | -5.6% | DPS: ₹51.00, Target Yield: 3.5% |
TECHM Intrinsic Value vs Market Price — All Valuation Models
Tech Mahindra fair value range ₹463–₹1714 vs current market price ₹1543.50 across 10 valuation models. Read TECHM ex-dividend dates for the complete payout history and dividend yield track record.
TECHM Intrinsic Value Analysis — Undervalued or Overvalued?
Tech Mahindra median intrinsic value ₹1074.20, current price ₹1543.50 — Trading Above Calculated Value by 30.4%, margin of safety -43.7%.
What is the intrinsic value of TECHM?
Based on our comprehensive analysis using 10 different valuation methods, the estimated intrinsic value of Tech Mahindra (TECHM) is ₹1074.20 (median value). With the current market price of ₹1543.50, this represents a -30.4% variance from our estimated fair value.
The valuation range spans from ₹463.05 to ₹1714.13, indicating ₹463.05 - ₹1714.13.
Is TECHM undervalued or overvalued?
Based on our multi-method analysis, Tech Mahindra (TECHM) appears to be trading above calculated value by approximately 30.4%.
TECHM Financial Health — Key Ratios vs Industry Benchmarks
Tech Mahindra financial ratios — ROE, debt-to-equity, profit margins and liquidity vs industry benchmarks and their impact on intrinsic value.
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Return on Equity | 18.0% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 17.0% | Industry Standard: 20%+ | Above 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 1.20x | Industry Standard: 1.0x+ | Above 1.0x | Measures asset utilization efficiency |
TECHM Cash Flow Quality — Operating & Free Cash Flow
Tech Mahindra operating cash flow, free cash flow, quality rating and sustainability score by period — key inputs to DCF intrinsic value calculation.
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2026 | ₹6,172 Cr | ₹6,015 Cr | Positive Free Cash Flow | 8/10 |
| March 2025 | ₹5,786 Cr | ₹5,779 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 |