Tera Software (NSE:TERASOFT) Earnings Yield (Joel Greenblatt) %: 7.69% (As of Jun. 2026) — 45% Below Median

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NSE:TERASOFT Tera Software Ltd NSE:TERASOFT
75 GF Score
Price ₹248.80
GF Value ₹455.92
Valuation Possible Value Trap
! 2 Warning Signs
View Full Analysis

What is Tera Software Earnings Yield (Joel Greenblatt) %?

Tera Software NSE:TERASOFT -1.87% 75 Earnings Yield (Joel Greenblatt) % is 7.69% as of Jun. 2026, which is 45% below its 10-year median of 14.02. GuruFocus rates NSE:TERASOFT with a GF Score™ of 75/100 and a GF Value™ of ₹455.92 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 2,913 Software companies, Tera Software ranks better than 82.29% on this metric.

Tera Software's Enterprise Value for the quarter that ended in Jun. 2026 was ₹5,175 Mil. Tera Software's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was ₹397 Mil. Tera Software's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2026 was 7.69%.

The historical rank and industry rank for Tera Software's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

NSE:TERASOFT' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.52   Med: 14.02   Max: 103.86
Current: 11.38

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Tera Software was 103.86%. The lowest was 3.52%. And the median was 14.02%.

NSE:TERASOFT's Earnings Yield (Joel Greenblatt) % is ranked better than
82.29% of 2913 companies
in the Software industry
Industry Median: 1.9 vs NSE:TERASOFT: 11.38

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Tera Software's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2026 was 0.00%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Tera Software  (NSE:TERASOFT) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Tera Software Earnings Yield (Joel Greenblatt) % Related Terms


Tera Software Earnings Yield (Joel Greenblatt) % Historical Data

* Premium members only.

The historical data trend for Tera Software's Earnings Yield (Joel Greenblatt) % 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.

Tera Software Earnings Yield (Joel Greenblatt) % Chart

Tera Software Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.03 27.10 11.19 5.97 8.67

Tera Software Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Earnings Yield (Joel Greenblatt) % 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 5.44 5.15 6.84 8.67 7.69

NSE:TERASOFT vs IBM, ACN, CTSH: Earnings Yield (Joel Greenblatt) % Comparison

For the Information Technology Services subindustry, Tera Software's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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.


Tera Software Earnings Yield (Joel Greenblatt) % vs Software Industry

For the Software industry and Technology sector, Tera Software's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Tera Software's Earnings Yield (Joel Greenblatt) % falls into.


NSE:TERASOFT
75GF Score
Tera Software Ltd NSE:TERASOFT
Earnings Yield (Joel Greenblatt) % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Tera Software Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Tera Softwares Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Mar. 2026 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=358.606/4118.3876
=8.71 %

Tera Software's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹397 Mil.


What does a Earnings Yield (Joel Greenblatt) % of 7.69% mean?
Tera Software (NSE:TERASOFT) has a Earnings Yield (Joel Greenblatt) % of 7.69% as of Jun. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Tera Software and its competitors. This is 45% below median its historical median of 14.02. Over the past decade, Tera Software's Earnings Yield (Joel Greenblatt) % has ranged from 3.52 to 103.86. According to the industry distribution chart, Tera Software ranks #516 out of 2913 companies in the Software industry, placing it in the top 17.7%.
Is Tera Software's Earnings Yield (Joel Greenblatt) % too high?
Tera Software's current Earnings Yield (Joel Greenblatt) % of 7.69% is 45% below median its 10-year median of 14.02. Over the past 10 years, this metric has ranged from a low of 3.52 to a high of 103.86. The Software industry median Earnings Yield (Joel Greenblatt) % is 1.90. Tera Software's value of 7.69% is 304.7% above this industry median. Based on the distribution chart, Tera Software ranks #516 out of 2913 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Tera Software has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tera Software's Earnings Yield (Joel Greenblatt) % compare to IBM and ACN?
According to the Software industry distribution chart, Tera Software ranks #516 out of 2913 companies for Earnings Yield (Joel Greenblatt) %. This places Tera Software in the top 18% of its industry — outperforming the majority of peers. The industry median Earnings Yield (Joel Greenblatt) % is 1.90. Tera Software's value of 7.69% is 304.7% above this benchmark. Historically, Tera Software's own Earnings Yield (Joel Greenblatt) % has ranged from 3.52 to 103.86 over the past decade. While the company's 10-year median is 14.02 vs. the industry median of 1.90, Tera Software has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield (Joel Greenblatt) % for a Software company?
The median Earnings Yield (Joel Greenblatt) % among Software companies is 1.90, based on 2,913 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tera Software's current Earnings Yield (Joel Greenblatt) % of 7.69% is 304.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Tera Software and its competitors. For the Software industry, the median Earnings Yield (Joel Greenblatt) % is 1.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tera Software's current Earnings Yield (Joel Greenblatt) % is 7.69%, which is 45% below median its own 10-year median of 14.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tera Software stock overvalued right now?
Based on GuruFocus' analysis, Tera Software (NSE:TERASOFT) is currently considered Possible Value Trap. The stock's GF Value™ is ₹455.92, compared to a current price of ₹248.80 — trading 45.4% below its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 7.69%, which is 45% below median its 10-year median of 14.02 and 304.7% above the Software industry median of 1.90. Tera Software's overall GF Score™ is 75/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Tera Software (NSE:TERASOFT), the current Earnings Yield (Joel Greenblatt) % is 7.69% 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 Tera Software (NSE:TERASOFT) Overvalued in 2026?

Based on GuruFocus' analysis, Tera Software stock appears to be undervalued. The current stock price of ₹248.80 is trading 45.4% below its estimated GF Value™ of ₹455.92. GuruFocus considers Tera Software to be Possible Value Trap.

Key valuation signals for NSE:TERASOFT:

  • Earnings Yield (Joel Greenblatt) %: 7.69% (45% below median its 10-year median of 14.02)
  • GF Value™: ₹455.92 vs. price of ₹248.80 (45.4% below fair value)
  • GF Score™: 75/100 with 2 warning signs
  • Industry Position: 304.7% above the Software median (#516 of 2913)

No single metric tells the full story. See the NSE:TERASOFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Tera Software Business Description

Other Exchanges 533982:India
Address Road No. 55, Plot No. 1107, No. 8-2-293/82/A/1107, Jubilee Hills, Hyderabad, TG, IND, 500033
Tera Software Ltd is engaged in providing IT & Integrated services. The company provides IT and operational solutions such as fiber network infrastructure and services; installation, maintenance, and support services, as well as wireless and wired connectivity; digitization of land records; sales tax automation; and solutions for the automation and management of road transport and vehicle registration authorities, among others. The company's operating business segments include the Technical Division, which generates maximum revenue, Integrated Solutions, Projects Division, and Others.
75GF Score

Get the complete analysis for NSE:TERASOFT

Earnings Yield (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹248.80
Price
₹455.92
GF Value