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Tech Mahindra (BOM:532755) Cyclically Adjusted PS Ratio : 2.50 (As of Apr. 29, 2024)


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What is Tech Mahindra Cyclically Adjusted PS Ratio?

As of today (2024-04-29), Tech Mahindra's current share price is ₹1277.45. Tech Mahindra's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 was ₹510.93. Tech Mahindra's Cyclically Adjusted PS Ratio for today is 2.50.

The historical rank and industry rank for Tech Mahindra's Cyclically Adjusted PS Ratio or its related term are showing as below:

BOM:532755' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.51   Med: 2.47   Max: 4.52
Current: 2.5

During the past years, Tech Mahindra's highest Cyclically Adjusted PS Ratio was 4.52. The lowest was 1.51. And the median was 2.47.

BOM:532755's Cyclically Adjusted PS Ratio is ranked worse than
58.52% of 1420 companies
in the Software industry
Industry Median: 1.865 vs BOM:532755: 2.50

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Tech Mahindra's adjusted revenue per share data for the three months ended in Mar. 2024 was ₹145.065. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is ₹510.93 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Tech Mahindra Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Tech Mahindra's Cyclically Adjusted PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Tech Mahindra Cyclically Adjusted PS Ratio Chart

Tech Mahindra Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.70 2.75 3.69 2.34 2.45

Tech Mahindra Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.34 2.34 2.48 2.52 2.45

Competitive Comparison of Tech Mahindra's Cyclically Adjusted PS Ratio

For the Information Technology Services subindustry, Tech Mahindra's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Tech Mahindra's Cyclically Adjusted PS Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Tech Mahindra's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where Tech Mahindra's Cyclically Adjusted PS Ratio falls into.



Tech Mahindra Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.

Tech Mahindra's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=1277.45/510.93
=2.50

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Tech Mahindra's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Tech Mahindra's adjusted Revenue per Share data for the three months ended in Mar. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=145.065/153.2548*153.2548
=145.065

Current CPI (Mar. 2024) = 153.2548.

Tech Mahindra Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 53.105 94.103 86.486
201409 56.813 96.780 89.965
201412 58.496 96.780 92.630
201503 62.253 97.163 98.192
201506 70.976 99.841 108.948
201509 74.577 101.753 112.323
201512 75.465 102.901 112.393
201603 75.662 102.518 113.107
201606 77.956 105.961 112.750
201609 80.598 105.961 116.571
201612 85.024 105.196 123.867
201703 84.258 105.196 122.751
201706 82.492 107.109 118.032
201709 85.511 109.021 120.205
201712 87.481 109.404 122.545
201803 90.430 109.786 126.235
201806 92.819 111.317 127.788
201809 96.734 115.142 128.754
201812 100.002 115.142 133.103
201903 96.730 118.202 125.415
201906 98.229 120.880 124.537
201909 103.135 123.175 128.321
201912 109.782 126.235 133.280
202003 107.740 124.705 132.406
202006 103.679 127.000 125.112
202009 106.606 130.118 125.562
202012 109.522 130.889 128.237
202103 109.825 131.771 127.731
202106 115.450 134.084 131.956
202109 123.062 135.847 138.831
202112 129.360 138.161 143.493
202203 136.281 138.822 150.450
202206 143.520 142.347 154.517
202209 148.312 144.661 157.123
202212 155.078 145.763 163.049
202303 154.669 146.865 161.399
202306 148.597 150.280 151.538
202309 145.074 151.492 146.762
202312 147.852 153.255 147.852
202403 145.065 153.255 145.065

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Tech Mahindra  (BOM:532755) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.


Tech Mahindra Cyclically Adjusted PS Ratio Related Terms

Thank you for viewing the detailed overview of Tech Mahindra's Cyclically Adjusted PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Tech Mahindra (BOM:532755) Business Description

Industry
Traded in Other Exchanges
Address
Plot No. 1, Phase III, Rajiv Gandhi Infotech Park, Hinjewadi, Pune, MH, IND, 411 057
Tech Mahindra Ltd is an IT services and consulting company in India. It offers a variety of technology solutions and services in addition to business process services. Its segments are Information Technology and Business Processing Outsourcing. The technology solutions include helping companies engage in cloud software, mobile solutions, network services, cybersecurity, and a variety of other options. The business process service is offered across various industries including telecom, financial services, retail, energy, hospitality, high-tech, agriculture, and food beverage. The company's approach includes cost reduction, process optimization, and ownership through automation and productivity improvements. Tech Mahindra generates approximately half of its revenue from the United States.

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