Tata Elxsi (BOM:500408) Margin of Safety % (DCF Earnings Based): -45.84% (As of Jul. 01, 2026)


BOM:500408 Tata Elxsi Ltd BOM:500408
86 GF Score
Price ₹3,830.10
GF Value ₹7,417.28
Valuation Significantly Undervalued
! 3 Warning Signs
View Full Analysis

What is Tata Elxsi Margin of Safety % (DCF Earnings Based)?

Tata Elxsi BOM:500408 -3.84% 86 Margin of Safety % (DCF Earnings Based) is -45.84% as of Jul. 01, 2026. GuruFocus rates BOM:500408 with a GF Score™ of 86/100 and a GF Value™ of ₹7,417.28 (Significantly Undervalued). The stock has 3 warning signs investors should review.

Margin of Safety % (DCF Earnings Based) = (Intrinsic Value: DCF (Earnings Based) - Current Price) / Intrinsic Value: DCF (Earnings Based).

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-07-01), Tata Elxsi's Predictability Rank is 4.5-Stars. Tata Elxsi's intrinsic value calculated from the Discounted Earnings model is ₹2626.28 and current share price is ₹3830.10. Consequently,

Tata Elxsi's Margin of Safety % (DCF Earnings Based) using Discounted Earnings model is -45.84%.

BOM:500408 vs UBER, SHOP, CRM: Margin of Safety % (DCF Earnings Based) Comparison

For the Software - Application subindustry, Tata Elxsi's Margin of Safety % (DCF Earnings Based), along with its competitors' market caps and Margin of Safety % (DCF Earnings Based) 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.

Tata Elxsi Margin of Safety % (DCF Earnings Based) vs Software Industry

For the Software industry and Technology sector, Tata Elxsi's Margin of Safety % (DCF Earnings Based) distribution charts can be found below:

* The bar in red indicates where Tata Elxsi's Margin of Safety % (DCF Earnings Based) falls into.


BOM:500408
86GF Score
Tata Elxsi Ltd BOM:500408
Margin of Safety % (DCF Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Tata Elxsi Margin of Safety % (DCF Earnings Based) Calculation

Tata Elxsi's Margin of Safety % (DCF Earnings Based) for today is calculated as

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(2626.28-3830.10)/2626.28
=-45.84 %

* 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.

The intrinsic value is calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow.

What does a Margin of Safety % (DCF Earnings Based) of -45.84% mean?
Tata Elxsi (BOM:500408) has a Margin of Safety % (DCF Earnings Based) of -45.84% as of Jul. 01, 2026. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Tata Elxsi.
Is Tata Elxsi's Margin of Safety % (DCF Earnings Based) too high?
Tata Elxsi's current Margin of Safety % (DCF Earnings Based) is -45.84%. Overall, Tata Elxsi has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tata Elxsi's Margin of Safety % (DCF Earnings Based) compare to UBER and SHOP?
Tata Elxsi's Margin of Safety % (DCF Earnings Based) of -45.84% can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF Earnings Based) for a Software company?
A good Margin of Safety % (DCF Earnings Based) depends on the Software industry context. However, Margin of Safety % (DCF Earnings Based) 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 Margin of Safety % (DCF Earnings Based) mean?
A high Margin of Safety % (DCF Earnings Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Tata Elxsi. Tata Elxsi's current Margin of Safety % (DCF Earnings Based) is -45.84%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tata Elxsi stock overvalued right now?
Based on GuruFocus' analysis, Tata Elxsi (BOM:500408) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹7,417.28, compared to a current price of ₹3,830.10 — trading 48.4% below its estimated fair value. The current Margin of Safety % (DCF Earnings Based) is -45.84%. Tata Elxsi's overall GF Score™ is 86/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF Earnings Based) calculated?
Margin of Safety % (DCF Earnings Based) is calculated from a company's financial statements. For Tata Elxsi (BOM:500408), the current Margin of Safety % (DCF Earnings Based) is -45.84% 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 Tata Elxsi (BOM:500408) Overvalued in 2026?

Based on GuruFocus' analysis, Tata Elxsi stock appears to be undervalued. The current stock price of ₹3,830.10 is trading 48.4% below its estimated GF Value™ of ₹7,417.28. GuruFocus considers Tata Elxsi to be Significantly Undervalued.

Key valuation signals for BOM:500408:

  • Margin of Safety % (DCF Earnings Based): -45.84%
  • GF Value™: ₹7,417.28 vs. price of ₹3,830.10 (48.4% below fair value)
  • GF Score™: 86/100 with 3 warning signs

No single metric tells the full story. See the BOM:500408 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Tata Elxsi Business Description

Other Exchanges TATAELXSI:India
Address ITPB Road, Whitefield, Bengaluru, KA, IND, 560048
Tata Elxsi Ltd provides product design and engineering services to the consumer electronics, communications & transportation industries and systems integration and support services for enterprise customers. The company also provides digital content creation for media and entertainment industry. It operates across two segments to deliver design, engineering and technology solutions across industries: Software Development & Services (SDS) and Systems Integration & Support (SIS). The SDS segment generates maximum revenue for the company and provides end-to-end product engineering and digital services, supporting clients from concept and design to development, validation and deployment. Geographically, the company derives maximum revenue from Europe followed by India, USA, and Other regions.
86GF Score

Get the complete analysis for BOM:500408

Margin of Safety % (DCF Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹3,830.10
Price
₹7,417.28
GF Value