Tech Mahindra Valuation
| TECHM Stock | 1,674 4.35 0.26% |
At this time, the company appears to be overvalued. Tech Mahindra Limited has a current Real Value of USD1406.54 per share. The regular price of the company is USD1674.45. Our model measures the value of Tech Mahindra Limited from inspecting the company fundamentals such as Return On Equity of 0.12, operating margin of 0.1 %, and Shares Outstanding of 884.6 M as well as reviewing its technical indicators and probability of bankruptcy.
Price Book 5.5863 | Enterprise Value 1.4 T | Enterprise Value Ebitda 20.5739 | Price Sales 2.8326 | Forward PE 15.2207 |
Overvalued
Today
Please note that Tech Mahindra's price fluctuation is very steady at this time. Calculation of the real value of Tech Mahindra Limited is based on 3 months time horizon. Increasing Tech Mahindra's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Tech Mahindra is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Tech Stock. However, Tech Mahindra's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 1674.45 | Real 1406.54 | Hype 1675.53 | Naive 1663.69 |
The intrinsic value of Tech Mahindra's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Tech Mahindra's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Tech Mahindra Limited helps investors to forecast how Tech stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Tech Mahindra more accurately as focusing exclusively on Tech Mahindra's fundamentals will not take into account other important factors: Tech Mahindra Cash |
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Tech Mahindra Total Value Analysis
Tech Mahindra Limited is at this time forecasted to have takeover price of 1.43 T with market capitalization of 1.48 T, debt of 25.37 B, and cash on hands of 42.55 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Tech Mahindra fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
1.43 T | 1.48 T | 25.37 B | 42.55 B |
Tech Mahindra Investor Information
About 35.0% of the company outstanding shares are owned by corporate insiders. The company has Price/Earnings To Growth (PEG) ratio of 1.86. Tech Mahindra Limited recorded earning per share (EPS) of 42.25. The entity last dividend was issued on the 31st of October 2024. The firm had 2:1 split on the 19th of March 2015. Based on the key measurements obtained from Tech Mahindra's financial statements, Tech Mahindra Limited is not in a good financial situation at this time. It has a very high probability of going through financial hardship in March.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 77 B | 73.3 B |
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| Operating Income | 32 B | 37.6 B |
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Tech Mahindra Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Tech Mahindra has an asset utilization ratio of 119.74 percent. This suggests that the Company is making USD1.2 for each dollar of assets. An increasing asset utilization means that Tech Mahindra Limited is more efficient with each dollar of assets it utilizes for everyday operations.Tech Mahindra Ownership Allocation
Tech Mahindra Limited shows a total of 884.6 Million outstanding shares. Tech Mahindra Limited maintains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how many assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.Tech Mahindra Profitability Analysis
The company reported the revenue of 519.96 B. Net Income was 23.58 B with profit before overhead, payroll, taxes, and interest of 157.75 B.About Tech Mahindra Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Tech Mahindra Limited. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Tech Mahindra Limited based exclusively on its fundamental and basic technical indicators. By analyzing Tech Mahindra's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Tech Mahindra's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Tech Mahindra. We calculate exposure to Tech Mahindra's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Tech Mahindra's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 151 B | 110.6 B |
Tech Mahindra Quarterly Retained Earnings |
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Other Information on Investing in Tech Stock
Tech Mahindra financial ratios help investors to determine whether Tech Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Tech with respect to the benefits of owning Tech Mahindra security.