Tech Mahindra Intrinsic Value
Tech Mahindra intrinsic value. Tech Mahindra (TECHM) median intrinsic value is ₹1168.25 from 10 valuation models (range ₹549–₹2326), vs current price ₹1829.10 — -36.1% downside (Trading Above Calculated Value), margin of safety -56.6%. 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 ₹1829.10 — 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 | ₹858.24 | ₹686.59 - ₹1029.89 | -53.1% | EPS: ₹71.52, Sector P/E: 12x |
| Book Value Method | asset | ₹678.94 | ₹611.05 - ₹746.83 | -62.9% | Book Value/Share: ₹678.94, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹1168.25 | ₹1051.42 - ₹1285.08 | -36.1% | Revenue/Share: ₹1460.32, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹1555.40 | ₹1399.86 - ₹1710.94 | -15.0% | EBITDA: ₹11484.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹1241.62 | ₹993.30 - ₹1489.94 | -32.1% | CF Growth: 4.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹548.73 | ₹493.86 - ₹603.60 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹589.32 | ₹530.39 - ₹648.25 | -67.8% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹2325.96 | ₹2093.36 - ₹2558.56 | +27.2% | ROE: 21.4%, P/E Multiple: 16x |
| Graham Defensive Method | conservative | ₹1045.25 | ₹940.73 - ₹1149.78 | -42.9% | EPS: ₹71.52, BVPS: ₹678.94 |
| Dividend Yield Method | dividend | ₹1457.14 | ₹1311.43 - ₹1602.85 | -20.3% | DPS: ₹51.00, Target Yield: 3.5% |
TECHM Intrinsic Value vs Market Price — All Valuation Models
Tech Mahindra fair value range ₹549–₹2326 vs current market price ₹1829.10 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 ₹1168.25, current price ₹1829.10 — Trading Above Calculated Value by 36.1%, margin of safety -56.6%.
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 ₹1168.25 (median value). With the current market price of ₹1829.10, this represents a -36.1% variance from our estimated fair value.
The valuation range spans from ₹548.73 to ₹2325.96, indicating ₹548.73 - ₹2325.96.
Is TECHM undervalued or overvalued?
Based on our multi-method analysis, Tech Mahindra (TECHM) appears to be trading above calculated value by approximately 36.1%.
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 | 21.4% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 18.0% | Industry Standard: 20%+ | Above 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 1.31x | 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 |