Is Tech Mahindra overvalued or undervalued?
As of October 15, 2025, Tech Mahindra is considered very expensive and overvalued with a PE Ratio of 31.87, significantly higher than peers like TCS and Infosys, and has underperformed with a year-to-date return of -14.45% compared to the Sensex's 5.72%.
As of 15 October 2025, Tech Mahindra's valuation grade has moved from expensive to very expensive, indicating a significant shift in its market positioning. The company is currently deemed overvalued. Key ratios reflect this assessment, with a PE Ratio of 31.87, an EV to EBITDA of 17.74, and a Price to Book Value of 5.22. In comparison to its peers, Tech Mahindra's valuation metrics stand out unfavorably; for instance, TCS, which is rated attractive, has a PE Ratio of 21.36, while Infosys, rated fair, has a PE Ratio of 22.46. Additionally, Tech Mahindra's PEG Ratio of 0.86 suggests that, despite its high valuation, the growth expectations may not justify the price. Recent stock performance has also been lackluster, with a year-to-date return of -14.45%, contrasting sharply with the Sensex's positive return of 5.72% in the same period.
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