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Tech MahindraNSE:TECHM +4.14%82 PB Ratio is 4.70 as of Jul. 18, 2026, which is 34% above its 10-year median of 3.51. GuruFocus rates NSE:TECHM with a GF Score™ of 82/100 and a GF Value™ of ₹1,605.62 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,629 Software companies, Tech Mahindra ranks worse than 74.97% on this metric.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2026-07-18), Tech Mahindra's share price is ₹1572.90. Tech Mahindra's Book Value per Share for the quarter that ended in Jun. 2026 was ₹334.41. Hence, Tech Mahindra's PB Ratio of today is 4.70.
The historical rank and industry rank for Tech Mahindra's PB Ratio or its related term are showing as below:
NSE:TECHM'
s PB Ratio Range Over the Past 10 Years
Min: 2.03 Med: 3.51 Max: 6.64
Current: 4.7
During the past 13 years, Tech Mahindra's highest PB Ratio was 6.64. The lowest was 2.03. And the median was 3.51.
NSE:TECHM's PB Ratio is ranked worse than 74.97% of 2629
companies
in the Software industry
Industry Median: 2.39
vs NSE:TECHM: 4.70
During the past 12 months, Tech Mahindra's average Book Value Per Share Growth Rate was 8.10% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 1.80% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was 3.80% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was 8.00% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Tech Mahindra was 46.00% per year. The lowest was 0.30% per year. And the median was 14.10% per year.
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
Tech Mahindra PB Ratio Related Terms
Tech Mahindra PB Ratio Historical Data
* Premium members only.
The historical data trend for Tech Mahindra's PB Ratio 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.
For the Information Technology Services subindustry, Tech Mahindra's PB Ratio, along with its competitors' market caps and PB Ratio 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 PB Ratio vs Software Industry
For the Software industry and Technology sector, Tech Mahindra's PB Ratio distribution charts can be found below:
* The bar in red indicates where Tech Mahindra's PB Ratio falls into.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
Tech Mahindra's PB Ratio for today is calculated as follows:
* 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.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
Tech Mahindra (NSE:TECHM) has a PB Ratio of 4.70 as of Jul. 18, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Tech Mahindra and its competitors. This is 34% above median its historical median of 3.51. Over the past decade, Tech Mahindra's PB Ratio has ranged from 2.03 to 6.64. According to the industry distribution chart, Tech Mahindra ranks #1971 out of 2629 companies in the Software industry, placing it in the top 75%.
Is Tech Mahindra's PB Ratio too high?
Tech Mahindra's current PB Ratio of 4.70 is 34% above median its 10-year median of 3.51. Over the past 10 years, this metric has ranged from a low of 2.03 to a high of 6.64. The Software industry median PB Ratio is 2.39. Tech Mahindra's value of 4.70 is 96.7% above this industry median. Based on the distribution chart, Tech Mahindra ranks #1971 out of 2629 companies in the Software industry, which is below the industry midpoint. Overall, Tech Mahindra has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tech Mahindra's PB Ratio compare to IBM and ACN?
According to the Software industry distribution chart, Tech Mahindra ranks #1971 out of 2629 companies for PB Ratio. This places Tech Mahindra in the lower half of its industry. The industry median PB Ratio is 2.39. Tech Mahindra's value of 4.70 is 96.7% above this benchmark. Historically, Tech Mahindra's own PB Ratio has ranged from 2.03 to 6.64 over the past decade. While the company's 10-year median is 3.51 vs. the industry median of 2.39, 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 PB Ratio for a Software company?
The median PB Ratio among Software companies is 2.39, based on 2,629 companies in the industry. Companies in the top quartile (top 25%) have a PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tech Mahindra's current PB Ratio of 4.70 is 96.7% 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 PB Ratio mean?
A high PB Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Tech Mahindra and its competitors. For the Software industry, the median PB Ratio is 2.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tech Mahindra's current PB Ratio is 4.70, which is 34% above median its own 10-year median of 3.51. 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 ₹1,605.62, compared to a current price of ₹1,572.90 — trading 2% below its estimated fair value. The current PB Ratio is 4.70, which is 34% above median its 10-year median of 3.51 and 96.7% above the Software industry median of 2.39. Tech Mahindra's overall GF Score™ is 82/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PB Ratio calculated?
PB Ratio is calculated from a company's financial statements. For Tech Mahindra (NSE:TECHM), the current PB Ratio is 4.70 as of Jul. 18, 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 ₹1,572.90 is trading 2% below its estimated GF Value™ of ₹1,605.62.
GuruFocus considers Tech Mahindra to be Fairly Valued.
Key valuation signals for NSE:TECHM:
PB Ratio: 4.70 (34% above median its 10-year median of 3.51)
GF Value™: ₹1,605.62 vs. price of ₹1,572.90 (2% below fair value)
Industry Position: 96.7% above the Software median (#1971 of 2629)
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.
82GF Score
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