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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Tech Mahindra's Sloan Ratio for the quarter that ended in Jun. 2026 was 0.00%.
As of Jun. 2026, Tech Mahindra has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Tech Mahindra (NSE:TECHM) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Jun. 2026, Tech Mahindra has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Tech Mahindra Sloan Ratio % Related Terms
Tech Mahindra Sloan Ratio % Historical Data
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The historical data trend for Tech Mahindra's Sloan 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.
NSE:TECHM vs IBM, ACN, FISV: Sloan Ratio % Comparison
For the Information Technology Services subindustry, Tech Mahindra's Sloan Ratio %, along with its competitors' market caps and Sloan 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 Sloan Ratio % vs Software Industry
For the Software industry and Technology sector, Tech Mahindra's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Tech Mahindra's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Tech Mahindra's Sloan Ratio for the fiscal year that ended in Mar. 2026 is calculated as
Tech Mahindra's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 11945 (Sep. 2025 ) + 11220 (Dec. 2025 ) + 13538 (Mar. 2026 ) + 14651 (Jun. 2026 ) = ₹51,354 Mil.
Tech Mahindra's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 0 (Sep. 2025 ) + 0 (Dec. 2025 ) + 0 (Mar. 2026 ) + 0 (Jun. 2026 ) = ₹0 Mil.
Tech Mahindra's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was 0 (Sep. 2025 ) + 0 (Dec. 2025 ) + 0 (Mar. 2026 ) + 0 (Jun. 2026 ) = ₹0 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.
Tech Mahindra (NSE:TECHM) has a Sloan Ratio % of 0.00% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Tech Mahindra and its competitors.
Is Tech Mahindra's Sloan Ratio % too high?
Tech Mahindra's current Sloan Ratio % is 0.00%. Overall, Tech Mahindra has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tech Mahindra's Sloan Ratio % compare to IBM and ACN?
Tech Mahindra's Sloan Ratio % of 0.00% 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 Sloan Ratio % for a Software company?
A good Sloan Ratio % depends on the Software industry context. However, Sloan Ratio % 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 Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Tech Mahindra and its competitors. Tech Mahindra's current Sloan Ratio % is 0.00%. 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 ₹1,636.52, compared to a current price of ₹1,640.90 — trading 0.3% above its estimated fair value. The current Sloan Ratio % is 0.00%. Tech Mahindra's overall GF Score™ is 86/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Tech Mahindra (NSE:TECHM), the current Sloan Ratio % is 0.00% as of Jun. 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 overvalued.
The current stock price of ₹1,640.90 is trading 0.3% above its estimated GF Value™ of ₹1,636.52.
GuruFocus considers Tech Mahindra to be Fairly Valued.
Key valuation signals for NSE:TECHM:
Sloan Ratio %: 0.00%
GF Value™: ₹1,636.52 vs. price of ₹1,640.90 (0.3% above fair value)
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.
86GF Score
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