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Persistent SystemsBOM:533179 +0.30%91 Pretax Margin % is 16.62% as of Mar. 2026, which is 13% above its 10-year median of 14.65. GuruFocus rates BOM:533179 with a GF Score™ of 91/100 and a GF Value™ of ₹6,772.71 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,832 Software companies, Persistent Systems ranks better than 82.38% on this metric.
Persistent Systems (BOM:533179) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Persistent Systems Pretax Margin % Related Terms
Persistent Systems Pretax Margin % Historical Data
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The historical data trend for Persistent Systems's Pretax Margin % 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.
BOM:533179 vs IBM, ACN, FISV: Pretax Margin % Comparison
For the Information Technology Services subindustry, Persistent Systems's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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.
Persistent Systems Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Persistent Systems's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Persistent Systems's Pretax Margin % 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.
Persistent Systems (BOM:533179) has a Pretax Margin % of 16.62% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Persistent Systems and its competitors. This is 13% above median its historical median of 14.65. Over the past decade, Persistent Systems' Pretax Margin % has ranged from 12.69 to 16.35. According to the industry distribution chart, Persistent Systems ranks #499 out of 2832 companies in the Software industry, placing it in the top 17.6%.
Is Persistent Systems' Pretax Margin % too high?
Persistent Systems' current Pretax Margin % of 16.62% is 13% above median its 10-year median of 14.65. Over the past 10 years, this metric has ranged from a low of 12.69 to a high of 16.35. The Software industry median Pretax Margin % is 3.61. Persistent Systems' value of 16.62% is 360.4% above this industry median. Based on the distribution chart, Persistent Systems ranks #499 out of 2832 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Persistent Systems has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Persistent Systems' Pretax Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Persistent Systems ranks #499 out of 2832 companies for Pretax Margin %. This places Persistent Systems in the top 18% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 3.61. Persistent Systems' value of 16.62% is 360.4% above this benchmark. Historically, Persistent Systems' own Pretax Margin % has ranged from 12.69 to 16.35 over the past decade. While the company's 10-year median is 14.65 vs. the industry median of 3.61, Persistent Systems 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 Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.61, based on 2,832 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Persistent Systems's current Pretax Margin % of 16.62% is 360.4% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Persistent Systems and its competitors. For the Software industry, the median Pretax Margin % is 3.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Persistent Systems's current Pretax Margin % is 16.62%, which is 13% above median its own 10-year median of 14.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Persistent Systems stock overvalued right now?
Based on GuruFocus' analysis, Persistent Systems (BOM:533179) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹6,772.71, compared to a current price of ₹5,528.00 — trading 18.4% below its estimated fair value. The current Pretax Margin % is 16.62%, which is 13% above median its 10-year median of 14.65 and 360.4% above the Software industry median of 3.61. Persistent Systems' overall GF Score™ is 91/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Persistent Systems (BOM:533179), the current Pretax Margin % is 16.62% as of Mar. 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 Persistent Systems (BOM:533179) Overvalued in 2026?
Based on GuruFocus' analysis, Persistent Systems stock appears to be undervalued.
The current stock price of ₹5,528.00 is trading 18.4% below its estimated GF Value™ of ₹6,772.71.
GuruFocus considers Persistent Systems to be Modestly Undervalued.
Key valuation signals for BOM:533179:
Pretax Margin %: 16.62% (13% above median its 10-year median of 14.65)
GF Value™: ₹6,772.71 vs. price of ₹5,528.00 (18.4% below fair value)
Industry Position: 360.4% above the Software median (#499 of 2832)
No single metric tells the full story. See the BOM:533179 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Persistent Systems Ltd is an India-based provider of software solutions organized in three segments based on the end market: Software, Hi-Tech, and Emerging Industries; Banking, Financial Services and Insurance; and Healthcare & Life Sciences. Its solutions include cloud life cycle management, Internet of Things, unified endpoint management, endpoint detection and response, and Big Data analytics. The firm also offers product engineering services, platform-based cloud solutions, and Internet Protocol-based products. The majority of the firm's revenue gets derived from the Software, Hi-Tech, and Emerging Industries segments.
91GF Score
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