Tera Software Limited (TERASOFT.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-127.4%

-₹64.82

vs ₹237.00 price

Levered DCF

₹1.73

After debt service

Piotroski score

3 / 9

Weak

Altman Z-score

—

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	15.03×	25.09×	15.26×	10.65×	-42.88×	56.49×	2.58×	14.18×
P/B	2.55×	1.93×	0.53×	0.34×	0.52×	0.44×	0.15×	0.51×
P/S	1.57×	2.2×	0.71×	0.32×	0.44×	0.29×	0.06×	0.3×
EV / EBITDA	11.08×	15.08×	7.87×	2.95×	13.44×	12.21×	2.57×	6.86×
Gross margin	17.4%	82.8%	77.9%	22.2%	8.4%	7.8%	9.9%	32.9%
Operating margin	15.1%	11.3%	7.6%	-8.6%	5.7%	4.3%	6.9%	7.6%
Net margin	10.4%	8.8%	4.1%	3.0%	-1.0%	0.5%	2.5%	2.1%
Current ratio	1.69×	2.01×	1.94×	1.93×	1.45×	1.38×	1.36×	1.62×
Debt / equity	0.27×	0.16×	0.3×	0.22×	0.56×	0.5×	0.27×	0.49×
Interest coverage	4.83×	3.2×	2.26×	-1.57×	0.66×	0.82×	1.96×	1.85×
Dividend yield	0.3%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	5.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	17.0%	7.7%	3.1%	3.2%	-1.2%	0.8%	6.0%	3.6%
Return on invested capital	14.7%	6.4%	2.5%	-3.0%	4.3%	2.4%	8.6%	5.3%
Return on assets	7.6%	4.4%	1.7%	1.8%	-0.5%	0.3%	2.1%	1.8%
Free cash flow yield	-6.3%	2.9%	-8.4%	88.1%	-38.1%	-77.9%	80.4%	-20.6%
Earnings yield	6.7%	4.0%	5.8%	9.4%	-2.3%	1.8%	38.8%	7.0%
Enterprise value	₹4.1B	₹2.5B	₹729.3M	₹450.5M	₹1.2B	₹1B	₹456.9M	₹989.7M
Net debt / EBITDA	0.93×	0.59×	1.42×	0.53×	6.98×	6.49×	1.62×	3.24×
Cash conversion cycle (days)	44	-552	-201	-382	331	254	97	168