INFY Valuation

Infosys Ltd

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16.740

+0.35(2.135%)1D

Overview
Forecast
Valuation
Earnings

INFY Relative Valuation

INFY's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, INFY is overvalued; if below, it's undervalued.

Historical Valuation

Infosys Ltd (INFY) is now in the Undervalued zone, suggesting that its current forward PE ratio of 20.44 is considered Undervalued compared with the five-year average of 25.53. The fair price of Infosys Ltd (INFY) is between 25.03 to 29.23 according to relative valuation methord. Compared to the current price of 16.73 USD , Infosys Ltd is Undervalued By 33.17%.

Relative Value

Fair Zone

25.03-29.23

Current Price：16.73

33.17%

Undervalued

20.44

Trailing

Forward

13.71

EV/EBITDA

Infosys Ltd. (INFY) has a current EV/EBITDA of 13.71. The 5-year average EV/EBITDA is 17.11. The thresholds are as follows: Strongly Undervalued below 12.40, Undervalued between 12.40 and 14.75, Fairly Valued between 19.47 and 14.75, Overvalued between 19.47 and 21.83, and Strongly Overvalued above 21.83. The current Forward EV/EBITDA of 13.71 falls within the Undervalued range.

15.53

EV/EBIT

Infosys Ltd. (INFY) has a current EV/EBIT of 15.53. The 5-year average EV/EBIT is 19.46. The thresholds are as follows: Strongly Undervalued below 14.14, Undervalued between 14.14 and 16.80, Fairly Valued between 22.11 and 16.80, Overvalued between 22.11 and 24.77, and Strongly Overvalued above 24.77. The current Forward EV/EBIT of 15.53 falls within the Undervalued range.

3.46

Infosys Ltd. (INFY) has a current PS of 3.46. The 5-year average PS is 4.39. The thresholds are as follows: Strongly Undervalued below 2.92, Undervalued between 2.92 and 3.65, Fairly Valued between 5.12 and 3.65, Overvalued between 5.12 and 5.86, and Strongly Overvalued above 5.86. The current Forward PS of 3.46 falls within the Undervalued range.

15.77

P/OCF

Infosys Ltd. (INFY) has a current P/OCF of 15.77. The 5-year average P/OCF is 23.35. The thresholds are as follows: Strongly Undervalued below 15.22, Undervalued between 15.22 and 19.29, Fairly Valued between 27.42 and 19.29, Overvalued between 27.42 and 31.49, and Strongly Overvalued above 31.49. The current Forward P/OCF of 15.77 falls within the Undervalued range.

21.22

P/FCF

Infosys Ltd. (INFY) has a current P/FCF of 21.22. The 5-year average P/FCF is 26.29. The thresholds are as follows: Strongly Undervalued below 19.44, Undervalued between 19.44 and 22.86, Fairly Valued between 29.71 and 22.86, Overvalued between 29.71 and 33.13, and Strongly Overvalued above 33.13. The current Forward P/FCF of 21.22 falls within the Undervalued range.

Infosys Ltd (INFY) has a current Price-to-Book (P/B) ratio of 6.14. Compared to its 3-year average P/B ratio of 7.77 , the current P/B ratio is approximately -20.98% higher. Relative to its 5-year average P/B ratio of 8.17, the current P/B ratio is about -24.88% higher. Infosys Ltd (INFY) has a Forward Free Cash Flow (FCF) yield of approximately 5.62%. Compared to its 3-year average FCF yield of 3.79%, the current FCF yield is approximately 48.47% lower. Relative to its 5-year average FCF yield of 3.68% , the current FCF yield is about 52.61% lower.

6.14

P/B

Median3y

7.77

Median5y

8.17

5.62

FCF Yield

Median3y

3.79

Median5y

3.68

Competitors Valuation Multiple

The average P/S ratio for INFY's competitors is 3.09, providing a benchmark for relative valuation. Infosys Ltd Corp (INFY) exhibits a P/S ratio of 3.46, which is 11.88% above the industry average. Given its robust revenue growth of 4.84%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

International Business Machines Corp

Performance Decomposition

Market capitalization of INFY decreased by 21.62% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 4.71B to 4.94B.

The secondary factor is the Margin Expansion, contributed 1.05%to the performance.

Overall, the performance of INFY in the past 1 year is driven by Revenue Growth. Which is more sustainable.

4.84%

4.71B → 4.94B

Revenue Growth

1.05%

16.21 → 16.38

Margin Expansion

-27.51%

29.36 → 21.29

P/E Change

-21.62%