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Tech MahindraNSE:TECHM +0.14%87 EV-to-EBIT is 18.36 as of Aug. 21, 2026, which is 43% above its 10-year median of 12.87. GuruFocus rates NSE:TECHM with a GF Score™ of 87/100 and a GF Value™ of ₹1,632.58 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,778 Software companies, Tech Mahindra ranks worse than 60.74% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Tech Mahindra's Enterprise Value for the quarter that ended in Jun. 2026 was ₹1,244,314 Mil.
Tech Mahindra'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 ₹73,678 Mil.
* 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 EV-to-EBIT Related Terms
Tech Mahindra EV-to-EBIT Historical Data
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The historical data trend for Tech Mahindra's EV-to-EBIT 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: EV-to-EBIT Comparison
For the Information Technology Services subindustry, Tech Mahindra's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Software Industry
For the Software industry and Technology sector, Tech Mahindra's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Tech Mahindra's EV-to-EBIT falls into.
Tech Mahindra's current Enterprise Value is ₹1,352,573 Mil.
Tech Mahindra'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 ₹73,678 Mil.
* 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 (NSE:TECHM) has a EV-to-EBIT of 18.36 as of Aug. 21, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Tech Mahindra and its competitors. This is 43% above median its historical median of 12.87. Over the past decade, Tech Mahindra's EV-to-EBIT has ranged from 6.32 to 38.91. According to the industry distribution chart, Tech Mahindra ranks #1080 out of 1778 companies in the Software industry, placing it in the top 60.7%.
Is Tech Mahindra's EV-to-EBIT too high?
Tech Mahindra's current EV-to-EBIT of 18.36 is 43% above median its 10-year median of 12.87. Over the past 10 years, this metric has ranged from a low of 6.32 to a high of 38.91. The Software industry median EV-to-EBIT is 13.97. Tech Mahindra's value of 18.36 is 31.5% above this industry median. Based on the distribution chart, Tech Mahindra ranks #1080 out of 1778 companies in the Software industry, which is below the industry midpoint. Overall, Tech Mahindra has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tech Mahindra's EV-to-EBIT compare to IBM and ACN?
According to the Software industry distribution chart, Tech Mahindra ranks #1080 out of 1778 companies for EV-to-EBIT. This places Tech Mahindra in the lower half of its industry. The industry median EV-to-EBIT is 13.97. Tech Mahindra's value of 18.36 is 31.5% above this benchmark. Historically, Tech Mahindra's own EV-to-EBIT has ranged from 6.32 to 38.91 over the past decade. While the company's 10-year median is 12.87 vs. the industry median of 13.97, Tech Mahindra 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 EV-to-EBIT for a Software company?
The median EV-to-EBIT among Software companies is 13.97, based on 1,778 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tech Mahindra's current EV-to-EBIT of 18.36 is 31.5% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Tech Mahindra and its competitors. For the Software industry, the median EV-to-EBIT is 13.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tech Mahindra's current EV-to-EBIT is 18.36, which is 43% above median its own 10-year median of 12.87. 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 ₹1,632.58, compared to a current price of ₹1,592.10 — trading 2.5% below its estimated fair value. The current EV-to-EBIT is 18.36, which is 43% above median its 10-year median of 12.87 and 31.5% above the Software industry median of 13.97. Tech Mahindra's overall GF Score™ is 87/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Tech Mahindra (NSE:TECHM), the current EV-to-EBIT is 18.36 as of Aug. 21, 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 undervalued.
The current stock price of ₹1,592.10 is trading 2.5% below its estimated GF Value™ of ₹1,632.58.
GuruFocus considers Tech Mahindra to be Fairly Valued.
Key valuation signals for NSE:TECHM:
EV-to-EBIT: 18.36 (43% above median its 10-year median of 12.87)
GF Value™: ₹1,632.58 vs. price of ₹1,592.10 (2.5% below fair value)
Industry Position: 31.5% above the Software median (#1080 of 1778)
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.
87GF Score
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