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Tech Mahindra Ltd
NSE:TECHM

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Tech Mahindra Ltd
NSE:TECHM
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Price: 1 435.4 INR -0.33% Market Closed
Market Cap: ₹1.4T

EV/EBIT

20.7
Current
17%
Cheaper
vs 3-y median of 25

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
20.7
=
Enterprise Value
₹1.3T
/
EBIT
₹64.7B

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
20.7
=
Enterprise Value
₹1.3T
/
EBIT
₹64.7B

Valuation Scenarios

Tech Mahindra Ltd is trading below its 3-year average

If EV/EBIT returns to its 3-Year Average (25), the stock would be worth ₹1 730.92 (21% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-6%
Maximum Upside
+21%
Average Upside
5%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 20.7 ₹1 435.4
0%
3-Year Average 25 ₹1 730.92
+21%
5-Year Average 19.5 ₹1 354.05
-6%
Industry Average 19.5 ₹1 348.17
-6%
Country Average 23.3 ₹1 611.94
+12%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
₹1.3T
/
Jan 2026
₹64.7B
=
20.7
Current
₹1.3T
/
Mar 2026
₹72.5B
=
17.8
Forward
₹1.3T
/
Mar 2027
₹89.7B
=
14.4
Forward
₹1.3T
/
Mar 2028
₹99.5B
=
13
Forward
₹1.3T
/
Mar 2029
₹117.3B
=
11
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
Market Cap EV/EBIT P/E
IN
Tech Mahindra Ltd
NSE:TECHM
1.4T INR 20.7 30.4
US
International Business Machines Corp
NYSE:IBM
222.3B USD 24.6 21.2
JP
BrainPad Inc
TSE:3655
20.9T JPY 52.7 551.4
IE
Accenture PLC
NYSE:ACN
118.1B USD 9.9 15.3
IN
Tata Consultancy Services Ltd
NSE:TCS
8.9T INR 13 18.6
IN
Infosys Ltd
NSE:INFY
5.2T INR 13.8 18.5
IN
HCL Technologies Ltd
NSE:HCLTECH
3.9T INR 16.2 23.4
JP
Fujitsu Ltd
TSE:6702
6.1T JPY 16.4 12.9
JP
NTT Data Group Corp
DUS:NT5
30.3B EUR 21 38.8
JP
NTT Data Corp
TSE:9613
5.6T JPY 21.1 39.1
JP
NEC Corp
TSE:6701
5.4T JPY 17 22.1

Market Distribution

In line with most companies in India
Percentile
45th
Based on 2 572 companies
45th percentile
20.7
Low
0.4 — 15.7
Typical Range
15.7 — 34.7
High
34.7 —
Distribution Statistics
India
Min 0.4
30th Percentile 15.7
Median 23.3
70th Percentile 34.7
Max 48 145.1

Tech Mahindra Ltd
Glance View

In the bustling world of global IT services, Tech Mahindra Ltd. has carved a niche for itself, emerging as a vital player among the giants. Born out of the renowned Mahindra Group, Tech Mahindra began its journey in the early 1980s, gaining momentum through partnerships and strategic expansions. The company took its initial baby steps in the telecommunications sector, which laid the groundwork for its progressive foray into multiple tech domains. Over the decades, it methodically expanded its service offerings beyond telecom, venturing into IT and business outsourcing services, software development, and digital solutions. Central to its strategy has been the seamless integration of technology with business processes and a focus on customer-centric innovations. This approach has elevated the company to significant heights, impacting diverse sectors such as banking, healthcare, and retail. The backbone of Tech Mahindra’s business model is its diversified portfolio of digital transformation services, which drive its revenue streams. Consistently adapting to the ever-changing tech landscape, the firm offers services like cloud computing, data analytics, cybersecurity, and AI-driven solutions, catering to a global clientele. By leveraging its workforce and innovation prowess, Tech Mahindra serves an enormous variety of industries, providing value through tailored IT solutions that enhance efficiency and business outcomes. The company's ability to generate revenue hinges on its robust project management frameworks that deliver projects on time and within budget while maintaining high performance and quality standards. Furthermore, strategic acquisitions have amplified its capabilities, allowing Tech Mahindra to penetrate new markets and escalate its growth trajectory. Ultimately, it is this intricate synergy of strategic vision and operational execution that propels Tech Mahindra's success on the global stage.

TECHM Intrinsic Value
1 296.91 INR
Overvaluation 10%
Intrinsic Value
Price ₹1 435.4
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