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Tech Mahindra Ltd
NSE:TECHM

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Tech Mahindra Ltd
NSE:TECHM
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Price: 1 434.8 INR 1.9%
Market Cap: ₹1.4T

P/FCFE

32.3
Current
2%
More Expensive
vs 3-y average of 31.6

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.

P/FCFE
32.3
=
Market Cap
₹1.4T
/
Free Cash Flow to Equity
₹43.5B

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.

P/FCFE
32.3
=
Market Cap
₹1.4T
/
Free Cash Flow to Equity
₹43.5B

Valuation Scenarios

Tech Mahindra Ltd is trading above its 3-year average

If P/FCFE returns to its 3-Year Average (31.6), the stock would be worth ₹1 403.9 (2% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-15%
Maximum Upside
+54%
Average Upside
12%
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%
5-Year Average 27.4 ₹1 216.79
-15%
Industry Average 36 ₹1 595.35
+11%
Country Average 49.7 ₹2 206.6
+54%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close
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
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

In line with most companies in India
Percentile
35th
Based on 1 683 companies
35th percentile
32.3
Low
0.6 — 27.4
Typical Range
27.4 — 92
High
92 —
Distribution Statistics
India
Min 0.6
30th Percentile 27.4
Median 49.7
70th Percentile 92
Max 57 010.1

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 ₹1 434.8
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