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Tera SoftwareNSE:TERASOFT -1.18%80 EV-to-EBIT is 7.71 as of Aug. 29, 2026, which is 9% above its 10-year median of 7.10. GuruFocus rates NSE:TERASOFT with a GF Score™ of 80/100 and a GF Value™ of ₹452.19 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 1,782 Software companies, Tera Software ranks better than 73.01% 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.
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 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹397 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.
Tera Software EV-to-EBIT Related Terms
Tera Software EV-to-EBIT Historical Data
* Premium members only.
The historical data trend for Tera Software'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:TERASOFT vs IBM, ACN, FISV: EV-to-EBIT Comparison
For the Information Technology Services subindustry, Tera Software'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.
Tera Software EV-to-EBIT vs Software Industry
For the Software industry and Technology sector, Tera Software's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Tera Software's EV-to-EBIT falls into.
Tera Software's current Enterprise Value is ₹3,062 Mil.
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.
* 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 (NSE:TERASOFT) has a EV-to-EBIT of 7.71 as of Aug. 29, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Tera Software and its competitors. This is near median its historical median of 7.10. Over the past decade, Tera Software's EV-to-EBIT has ranged from 0.96 to 28.37. According to the industry distribution chart, Tera Software ranks #481 out of 1782 companies in the Software industry, placing it in the top 27%.
Is Tera Software's EV-to-EBIT too high?
Tera Software's current EV-to-EBIT of 7.71 is near median its 10-year median of 7.10. Over the past 10 years, this metric has ranged from a low of 0.96 to a high of 28.37. The Software industry median EV-to-EBIT is 13.71. Tera Software's value of 7.71 is 43.7% below this industry median. Based on the distribution chart, Tera Software ranks #481 out of 1782 companies in the Software industry, which is above the industry midpoint. Overall, Tera Software has a GF Score™ of 80/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tera Software's EV-to-EBIT compare to IBM and ACN?
According to the Software industry distribution chart, Tera Software ranks #481 out of 1782 companies for EV-to-EBIT. This puts Tera Software in the upper half of its industry. The industry median EV-to-EBIT is 13.71. Tera Software's value of 7.71 is 43.7% below this benchmark. Historically, Tera Software's own EV-to-EBIT has ranged from 0.96 to 28.37 over the past decade. While the company's 10-year median is 7.10 vs. the industry median of 13.71, Tera Software has consistently been below 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 13.71, based on 1,782 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. Tera Software's current EV-to-EBIT of 7.71 is 43.7% below 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 Tera Software and its competitors. For the Software industry, the median EV-to-EBIT is 13.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tera Software's current EV-to-EBIT is 7.71, which is near median its own 10-year median of 7.10. 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 ₹452.19, compared to a current price of ₹297.80 — trading 34.1% below its estimated fair value. The current EV-to-EBIT is 7.71, which is near median its 10-year median of 7.10 and 43.7% below the Software industry median of 13.71. Tera Software's overall GF Score™ is 80/100 with 2 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 Tera Software (NSE:TERASOFT), the current EV-to-EBIT is 7.71 as of Aug. 29, 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 ₹297.80 is trading 34.1% below its estimated GF Value™ of ₹452.19.
GuruFocus considers Tera Software to be Possible Value Trap.
Key valuation signals for NSE:TERASOFT:
EV-to-EBIT: 7.71 (near median its 10-year median of 7.10)
GF Value™: ₹452.19 vs. price of ₹297.80 (34.1% below fair value)
Industry Position: 43.7% below the Software median (#481 of 1782)
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 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.
80GF Score
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