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TECH MAHINDRA
PE (Price/Earnings) Ratio

The Current P/E Ratio of TECH MAHINDRA is 53.42.

Share Price ₹1,304.8May 17,2024
Market Cap ₹127,465.9 Cr
Earnings-TTM₹2,386.3 CrTTM-Consolidated Results
Price/Earnings53.42xCalculated as Market Cap/Earnings
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Definition & Calculation of PE (Price/Earnings) ratio of TECH MAHINDRA

Price-to-Earnings ratio, P/E Multiple, or P/E Ratio is an important valuation multiple that is defined as:

P/E = Market Capitalization / Net Income

or, using per-share numbers:

P/E = Stock Price / Earnings Per Share (EPS)

Applying the above formula, P/E ratio of TECH MAHINDRA is calculated as :

Current Market Cap [ ₹127,465.9 Cr] as on May 17,2024

(/) Earnings [ ₹2,386.3 Cr] based on TTM-Consolidated Results

(=) P/E Ratio [ 53.42x ]

P/E Ratio indicates the multiple of earnings investors are willing to pay to own one share of the company.

Thus, for TECH MAHINDRA , the investors are currently willing to pay 53.42 times earnings to own 1 share of the company.

PE Multiples are the most widely used valuation multiple in practice.

Since P/E ratio uses Net Income in the calculation, P/E multiples are not always reliable for valuing companies with negative earnings.

In such cases, you may consider using Price to Book ratio or Price to Sales ratio of TECH MAHINDRA !

P/E ratios, also, would not adjust for differences in the capital structure between companies.

The chart below summarizes the trend in P/E Ratio of TECH MAHINDRA over the last five years.

Historical PE (Price/Earnings) ratio chart of TECH MAHINDRA


PE Ratio Performance Analysis for TECH MAHINDRA

- TECH MAHINDRA 's latest p/e ratio is 53.42x.

- TECH MAHINDRA 's p/e ratio for fiscal years ending Mar2023 to Mar2019 averaged 18.30x.

- TECH MAHINDRA 's operated at median p/e ratio of 19.57x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, TECH MAHINDRA 's p/e ratio peaked in Mar2022 at 23.64x.

- TECH MAHINDRA 's p/e ratio hit its five-year low in Mar2020 of 12.21x.


How does TECH MAHINDRA 's P/E Ratio benchmark against top 10 peers in IT - Software Industry?

Peer Comparison (IT - Software Industry)Earnings-TTM (Cr)PE RatioMarket Cap
TECH MAHINDRA 2,386.3053.42127,465.9
TATA CONSULTANCY SERVICES LTD46,099.0030.091,387,160.0
INFOSYS LTD26,248.0022.84599,501.0
HCL TECHNOLOGIES LTD15,710.0023.02361,718.0
WIPRO LTD11,135.4021.65241,040.0
LTIMINDTREE LTD4,584.6030.79141,137.0
ORACLE FINANCIAL SERVICES SOFTWARE LTD2,219.3630.4067,474.2
PERSISTENT SYSTEMS LTD1,093.4949.8454,501.4
L&T TECHNOLOGY SERVICES LTD1,306.2036.0847,123.4
TATA ELXSI LTD792.2457.8545,831.4
MPHASIS LTD1,554.8228.0943,680.7

IT - Software Industry Benchmark (Top 10) PE Analysis vs TECH MAHINDRA 's P/E Ratio

Top 10 Industry PeersPE Ratio
Min industry PE 21.65x
Max industry PE 57.85x
Median industry PE 30.40x
Average industry PE 34.92x



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