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A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Tech Mahindra's Debt-to-EBITDA or its related term are showing as below:
NSE:TECHM'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.24 Med: 0.3 Max: 0.55
Current: 0.24
During the past 13 years, the highest Debt-to-EBITDA Ratio of Tech Mahindra was 0.55. The lowest was 0.24. And the median was 0.30.
NSE:TECHM's Debt-to-EBITDA is ranked better than 75.72% of 1726
companies
in the Software industry
Industry Median: 1.035
vs NSE:TECHM: 0.24
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Tech Mahindra Debt-to-EBITDA Related Terms
Tech Mahindra Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Tech Mahindra's Debt-to-EBITDA 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.
NSE:TECHM vs IBM, ACN, FISV: Debt-to-EBITDA Comparison
For the Information Technology Services subindustry, Tech Mahindra's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Tech Mahindra's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Tech Mahindra's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Jun. 2026) EBITDA data.
Tech Mahindra (NSE:TECHM) has a Debt-to-EBITDA of 0.00 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Tech Mahindra. Over the past decade, Tech Mahindra's Debt-to-EBITDA has ranged from 0.24 to 0.55. According to the industry distribution chart, Tech Mahindra ranks #419 out of 1726 companies in the Software industry, placing it in the top 24.3%.
Is Tech Mahindra's Debt-to-EBITDA too high?
Tech Mahindra's current Debt-to-EBITDA is 0.00. Over the past 10 years, this metric has ranged from a low of 0.24 to a high of 0.55. Based on the distribution chart, Tech Mahindra ranks #419 out of 1726 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Tech Mahindra has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tech Mahindra's Debt-to-EBITDA compare to IBM and ACN?
According to the Software industry distribution chart, Tech Mahindra ranks #419 out of 1726 companies for Debt-to-EBITDA. This places Tech Mahindra in the top 24% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 1.04. Historically, Tech Mahindra's own Debt-to-EBITDA has ranged from 0.24 to 0.55 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Software company?
The median Debt-to-EBITDA among Software companies is 1.04, based on 1,726 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Tech Mahindra. For the Software industry, the median Debt-to-EBITDA is 1.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tech Mahindra's current Debt-to-EBITDA is 0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tech Mahindra stock overvalued right now?
Based on GuruFocus' analysis, Tech Mahindra (NSE:TECHM) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,630.01, compared to a current price of ₹1,632.80 — trading 0.2% above its estimated fair value. The current Debt-to-EBITDA is 0.00. Tech Mahindra's overall GF Score™ is 85/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Tech Mahindra (NSE:TECHM), the current Debt-to-EBITDA is 0.00 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tech Mahindra (NSE:TECHM) Overvalued in 2026?
Based on GuruFocus' analysis, Tech Mahindra stock appears to be overvalued.
The current stock price of ₹1,632.80 is trading 0.2% above its estimated GF Value™ of ₹1,630.01.
GuruFocus considers Tech Mahindra to be Fairly Valued.
Key valuation signals for NSE:TECHM:
Debt-to-EBITDA: 0.00
GF Value™: ₹1,630.01 vs. price of ₹1,632.80 (0.2% above fair value)
No single metric tells the full story. See the NSE:TECHM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 Process Services. 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 generates the majority of its revenue from Communications & Media & Entertainment Industry. Geographically the company generates the majority of its revenue from the Americas.
85GF Score
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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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