Tech MahindraNSE:TECHM -2.03%83 FCF Yield % is 4.39 as of Jul. 01, 2026, which is 11% below its 10-year median of 4.93. GuruFocus rates NSE:TECHM with a GF Score™ of 83/100 and a GF Value™ of ₹1,561.08 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,867 Software companies, Tech Mahindra ranks better than 65.12% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Tech Mahindra FCF Yield % Related Terms
Tech Mahindra FCF Yield % Historical Data
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The historical data trend for Tech Mahindra's FCF Yield % 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: FCF Yield % Comparison
For the Information Technology Services subindustry, Tech Mahindra's FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Software Industry
For the Software industry and Technology sector, Tech Mahindra's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Tech Mahindra's FCF Yield % 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.
Tech Mahindra (NSE:TECHM) has a FCF Yield % of 4.39 as of Jul. 01, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Tech Mahindra and its competitors. This is 11% below median its historical median of 4.93. Over the past decade, Tech Mahindra's FCF Yield % has ranged from 1.31 to 9.75. According to the industry distribution chart, Tech Mahindra ranks #1000 out of 2867 companies in the Software industry, placing it in the top 34.9%.
Is Tech Mahindra's FCF Yield % too high?
Tech Mahindra's current FCF Yield % of 4.39 is 11% below median its 10-year median of 4.93. Over the past 10 years, this metric has ranged from a low of 1.31 to a high of 9.75. The Software industry median FCF Yield % is 0.88. Tech Mahindra's value of 4.39 is 398.9% above this industry median. Based on the distribution chart, Tech Mahindra ranks #1000 out of 2867 companies in the Software industry, which is above the industry midpoint. Overall, Tech Mahindra has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tech Mahindra's FCF Yield % compare to IBM and ACN?
According to the Software industry distribution chart, Tech Mahindra ranks #1000 out of 2867 companies for FCF Yield %. This puts Tech Mahindra in the upper half of its industry. The industry median FCF Yield % is 0.88. Tech Mahindra's value of 4.39 is 398.9% above this benchmark. Historically, Tech Mahindra's own FCF Yield % has ranged from 1.31 to 9.75 over the past decade. While the company's 10-year median is 4.93 vs. the industry median of 0.88, 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 FCF Yield % for a Software company?
The median FCF Yield % among Software companies is 0.88, based on 2,867 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tech Mahindra's current FCF Yield % of 4.39 is 398.9% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Tech Mahindra and its competitors. For the Software industry, the median FCF Yield % is 0.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tech Mahindra's current FCF Yield % is 4.39, which is 11% below median its own 10-year median of 4.93. 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 Modestly Undervalued. The stock's GF Value™ is ₹1,561.08, compared to a current price of ₹1,404.70 — trading 10% below its estimated fair value. The current FCF Yield % is 4.39, which is 11% below median its 10-year median of 4.93 and 398.9% above the Software industry median of 0.88. Tech Mahindra's overall GF Score™ is 83/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Tech Mahindra (NSE:TECHM), the current FCF Yield % is 4.39 as of Jul. 01, 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 ₹1,404.70 is trading 10% below its estimated GF Value™ of ₹1,561.08.
GuruFocus considers Tech Mahindra to be Modestly Undervalued.
Key valuation signals for NSE:TECHM:
FCF Yield %: 4.39 (11% below median its 10-year median of 4.93)
GF Value™: ₹1,561.08 vs. price of ₹1,404.70 (10% below fair value)
Industry Position: 398.9% above the Software median (#1000 of 2867)
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.
83GF Score
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