Tech Mahindra Ltd
NSE:TECHM
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P/FCFE
Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.
Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.
Valuation Scenarios
If P/FCFE returns to its 3-Year Average (31.6), the stock would be worth ₹1 403.9 (2% downside from current price).
| Scenario | P/FCFE Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 32.3 | ₹1 434.8 |
0%
|
| 3-Year Average | 31.6 | ₹1 403.9 |
-2%
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| 5-Year Average | 27.4 | ₹1 216.79 |
-15%
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| Industry Average | 36 | ₹1 595.35 |
+11%
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| Country Average | 49.7 | ₹2 206.6 |
+54%
|
Forward P/FCFE
Today’s price vs future free cash flow to equity
Peer Comparison
| Market Cap | P/FCFE | P/E | ||||
|---|---|---|---|---|---|---|
| IN |
|
Tech Mahindra Ltd
NSE:TECHM
|
1.4T INR | 32.3 | 30.4 | |
| US |
|
International Business Machines Corp
NYSE:IBM
|
218.6B USD | 17.4 | 20.3 | |
| JP |
|
BrainPad Inc
TSE:3655
|
20.9T JPY | 48.9 | 551.4 | |
| IE |
|
Accenture PLC
NYSE:ACN
|
109.3B USD | 8.9 | 14.3 | |
| IN |
|
Tata Consultancy Services Ltd
NSE:TCS
|
8.9T INR | 20.4 | 18.6 | |
| IN |
|
Infosys Ltd
NSE:INFY
|
4.7T INR | 16.8 | 17.2 | |
| JP |
|
Fujitsu Ltd
TSE:6702
|
6.5T JPY | -209.5 | 13.6 | |
| JP |
|
NEC Corp
TSE:6701
|
5.9T JPY | 52.9 | 24.1 | |
| JP |
N
|
NTT Data Group Corp
DUS:NT5
|
30.3B EUR | -121.6 | 38.8 | |
| IN |
|
HCL Technologies Ltd
NSE:HCLTECH
|
3.3T INR | 23.1 | 20.2 | |
| JP |
|
NTT Data Corp
TSE:9613
|
5.6T JPY | -122.5 | 39.1 |
Market Distribution
| Min | 0.6 |
| 30th Percentile | 27.4 |
| Median | 49.7 |
| 70th Percentile | 92 |
| Max | 57 010.1 |
Other Multiples
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.