Tech Mahindra Limited

NSEI:TECHM Stock Report

Market Cap: ₹1.4t

Tech Mahindra Valuation

Is TECHM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TECHM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TECHM (₹1623.25) is trading above our estimate of fair value (₹1336.09)

Significantly Below Fair Value: TECHM is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TECHM?

Other financial metrics that can be useful for relative valuation.

TECHM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.7x
Enterprise Value/EBITDA29.9x
PEG Ratio2x

Price to Earnings Ratio vs Peers

How does TECHM's PE Ratio compare to its peers?

The above table shows the PE ratio for TECHM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average41.6x
507685 Wipro
24.3x9.2%₹2.7t
LTIM LTIMindtree
40x14.0%₹1.8t
526299 Mphasis
36.9x13.1%₹577.0b
PERSISTENT Persistent Systems
65.1x19.2%₹762.4b
TECHM Tech Mahindra
57x29.1%₹1.4t

Price-To-Earnings vs Peers: TECHM is expensive based on its Price-To-Earnings Ratio (57x) compared to the peer average (41.6x).

Price to Earnings Ratio vs Industry

How does TECHM's PE Ratio compare vs other companies in the IN IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.6%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.6%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: TECHM is expensive based on its Price-To-Earnings Ratio (57x) compared to the Indian IT industry average (40x).

Price to Earnings Ratio vs Fair Ratio

What is TECHM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TECHM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio57x
Fair PE Ratio58x

Price-To-Earnings vs Fair Ratio: TECHM is good value based on its Price-To-Earnings Ratio (57x) compared to the estimated Fair Price-To-Earnings Ratio (58x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TECHM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,623.25
₹1,488.14
-8.3%
14.1%₹1,810.00₹1,005.00n/a42
Sep ’25₹1,636.50
₹1,478.97
-9.6%
14.5%₹1,810.00₹1,005.00n/a42
Aug ’25₹1,544.45
₹1,476.00
-4.4%
14.7%₹1,810.00₹1,005.00n/a41
Jul ’25₹1,472.10
₹1,314.30
-10.7%
15.3%₹1,715.00₹950.00n/a41
Jun ’25₹1,228.45
₹1,270.04
+3.4%
12.8%₹1,589.86₹930.00n/a42
May ’25₹1,263.50
₹1,270.04
+0.5%
12.8%₹1,589.86₹930.00n/a42
Apr ’25₹1,244.55
₹1,282.24
+3.0%
12.5%₹1,555.00₹950.00n/a38
Mar ’25₹1,271.80
₹1,293.21
+1.7%
12.4%₹1,555.00₹950.00n/a38
Feb ’25₹1,312.50
₹1,289.24
-1.8%
12.9%₹1,555.00₹950.00n/a37
Jan ’25₹1,297.15
₹1,126.22
-13.2%
13.3%₹1,450.00₹810.00n/a37
Dec ’24₹1,220.55
₹1,114.62
-8.7%
12.3%₹1,372.00₹810.00n/a37
Nov ’24₹1,125.10
₹1,112.05
-1.2%
12.1%₹1,372.00₹810.00n/a37
Oct ’24₹1,222.80
₹1,121.03
-8.3%
15.2%₹1,641.00₹850.00n/a37
Sep ’24₹1,228.05
₹1,071.03
-12.8%
12.3%₹1,316.00₹850.00₹1,636.5037
Aug ’24₹1,143.50
₹1,067.97
-6.6%
11.9%₹1,316.00₹850.00₹1,544.4538
Jul ’24₹1,130.85
₹1,102.61
-2.5%
10.1%₹1,300.00₹900.00₹1,472.1038
Jun ’24₹1,120.80
₹1,094.92
-2.3%
10.1%₹1,300.00₹845.00₹1,228.4538
May ’24₹1,023.70
₹1,094.92
+7.0%
10.1%₹1,300.00₹845.00₹1,263.5038
Apr ’24₹1,101.85
₹1,158.89
+5.2%
8.1%₹1,375.00₹920.00₹1,244.5537
Mar ’24₹1,126.90
₹1,106.03
-1.9%
7.4%₹1,260.00₹920.00₹1,271.8036
Feb ’24₹1,023.75
₹1,109.21
+8.3%
7.9%₹1,320.00₹920.00₹1,312.5039
Jan ’24₹1,016.40
₹1,134.78
+11.6%
9.5%₹1,369.00₹920.00₹1,297.1536
Dec ’23₹1,101.50
₹1,155.65
+4.9%
14.2%₹1,940.00₹920.00₹1,220.5537
Nov ’23₹1,070.90
₹1,151.22
+7.5%
14.4%₹1,940.00₹920.00₹1,125.1037
Oct ’23₹1,008.60
₹1,163.31
+15.3%
16.3%₹1,940.00₹905.00₹1,222.8039
Sep ’23₹1,052.90
₹1,172.51
+11.4%
15.9%₹1,940.00₹960.00₹1,228.0539

Analyst Forecast: Target price is lower than the current share price.

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