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 21.33 is considered Undervalued compared with the five-year average of 25.45. The fair price of Infosys Ltd (INFY) is between 24.08 to 28.46 according to relative valuation methord. Compared to the current price of 17.66 USD , Infosys Ltd is Undervalued By 26.66%.
Relative Value
Fair Zone
24.08-28.46
Current Price：17.66
26.66%
Undervalued
21.81
PE
1Y
3Y
5Y
Trailing
Forward
14.03
EV/EBITDA
Infosys Ltd. (INFY) has a current EV/EBITDA of 14.03. The 5-year average EV/EBITDA is 17.04. The thresholds are as follows: Strongly Undervalued below 12.18, Undervalued between 12.18 and 14.61, Fairly Valued between 19.47 and 14.61, Overvalued between 19.47 and 21.90, and Strongly Overvalued above 21.90. The current Forward EV/EBITDA of 14.03 falls within the Undervalued range.
15.98
EV/EBIT
Infosys Ltd. (INFY) has a current EV/EBIT of 15.98. The 5-year average EV/EBIT is 19.38. The thresholds are as follows: Strongly Undervalued below 13.89, Undervalued between 13.89 and 16.63, Fairly Valued between 22.12 and 16.63, Overvalued between 22.12 and 24.86, and Strongly Overvalued above 24.86. The current Forward EV/EBIT of 15.98 falls within the Undervalued range.
3.61
PS
Infosys Ltd. (INFY) has a current PS of 3.61. The 5-year average PS is 4.36. The thresholds are as follows: Strongly Undervalued below 2.85, Undervalued between 2.85 and 3.60, Fairly Valued between 5.11 and 3.60, Overvalued between 5.11 and 5.87, and Strongly Overvalued above 5.87. The current Forward PS of 3.61 falls within the Historic Trend Line -Fairly Valued range.
20.15
P/OCF
Infosys Ltd. (INFY) has a current P/OCF of 20.15. The 5-year average P/OCF is 23.41. The thresholds are as follows: Strongly Undervalued below 15.44, Undervalued between 15.44 and 19.43, Fairly Valued between 27.40 and 19.43, Overvalued between 27.40 and 31.38, and Strongly Overvalued above 31.38. The current Forward P/OCF of 20.15 falls within the Historic Trend Line -Fairly Valued range.
22.92
P/FCF
Infosys Ltd. (INFY) has a current P/FCF of 22.92. The 5-year average P/FCF is 26.19. The thresholds are as follows: Strongly Undervalued below 19.20, Undervalued between 19.20 and 22.70, Fairly Valued between 29.69 and 22.70, Overvalued between 29.69 and 33.19, and Strongly Overvalued above 33.19. The current Forward P/FCF of 22.92 falls within the Historic Trend Line -Fairly Valued range.
Infosys Ltd (INFY) has a current Price-to-Book (P/B) ratio of 6.29. Compared to its 3-year average P/B ratio of 7.65 , the current P/B ratio is approximately -17.79% higher. Relative to its 5-year average P/B ratio of 8.15, the current P/B ratio is about -22.78% higher. Infosys Ltd (INFY) has a Forward Free Cash Flow (FCF) yield of approximately 5.77%. Compared to its 3-year average FCF yield of 3.92%, the current FCF yield is approximately 46.99% lower. Relative to its 5-year average FCF yield of 3.74% , the current FCF yield is about 54.08% lower.
6.31
P/B
Median3y
7.65
Median5y
8.15
5.70
FCF Yield
Median3y
3.92
Median5y
3.74
Competitors Valuation Multiple
The average P/S ratio for INFY's competitors is 3.19, providing a benchmark for relative valuation. Infosys Ltd Corp (INFY) exhibits a P/S ratio of 3.61, which is 13.24% above the industry average. Given its robust revenue growth of 4.17%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of INFY decreased by 16.56% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 15.90 to 16.58.
The secondary factor is the Revenue Growth, contributed 4.17%to the performance.
Overall, the performance of INFY in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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