INFY PE Ratio & Valuation,Is INFY Overvalued

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 21.90 is considered Undervalued compared with the five-year average of 25.41. The fair price of Infosys Ltd (INFY) is between 23.84 to 28.28 according to relative valuation methord. Compared to the current price of 18.23 USD , Infosys Ltd is Undervalued By 23.53%.

Relative Value

Fair Zone

23.84-28.28

Current Price：18.23

23.53%

Undervalued

21.90

14.28

EV/EBITDA

Infosys Ltd. (INFY) has a current EV/EBITDA of 14.28. The 5-year average EV/EBITDA is 17.00. The thresholds are as follows: Strongly Undervalued below 12.08, Undervalued between 12.08 and 14.54, Fairly Valued between 19.46 and 14.54, Overvalued between 19.46 and 21.92, and Strongly Overvalued above 21.92. The current Forward EV/EBITDA of 14.28 falls within the Undervalued range.

16.17

EV/EBIT

Infosys Ltd. (INFY) has a current EV/EBIT of 16.17. The 5-year average EV/EBIT is 19.33. The thresholds are as follows: Strongly Undervalued below 13.77, Undervalued between 13.77 and 16.55, Fairly Valued between 22.11 and 16.55, Overvalued between 22.11 and 24.88, and Strongly Overvalued above 24.88. The current Forward EV/EBIT of 16.17 falls within the Undervalued range.

3.64

Infosys Ltd. (INFY) has a current PS of 3.64. The 5-year average PS is 4.34. The thresholds are as follows: Strongly Undervalued below 2.82, Undervalued between 2.82 and 3.58, Fairly Valued between 5.10 and 3.58, Overvalued between 5.10 and 5.86, and Strongly Overvalued above 5.86. The current Forward PS of 3.64 falls within the Historic Trend Line -Fairly Valued range.

20.43

P/OCF

Infosys Ltd. (INFY) has a current P/OCF of 20.43. The 5-year average P/OCF is 23.42. The thresholds are as follows: Strongly Undervalued below 15.47, Undervalued between 15.47 and 19.44, Fairly Valued between 27.39 and 19.44, Overvalued between 27.39 and 31.36, and Strongly Overvalued above 31.36. The current Forward P/OCF of 20.43 falls within the Historic Trend Line -Fairly Valued range.

23.20

P/FCF

Infosys Ltd. (INFY) has a current P/FCF of 23.20. The 5-year average P/FCF is 26.13. The thresholds are as follows: Strongly Undervalued below 19.09, Undervalued between 19.09 and 22.61, Fairly Valued between 29.66 and 22.61, Overvalued between 29.66 and 33.18, and Strongly Overvalued above 33.18. The current Forward P/FCF of 23.20 falls within the Historic Trend Line -Fairly Valued range.

Infosys Ltd (INFY) has a current Price-to-Book (P/B) ratio of 6.32. Compared to its 3-year average P/B ratio of 7.61 , the current P/B ratio is approximately -16.97% higher. Relative to its 5-year average P/B ratio of 8.14, the current P/B ratio is about -22.39% higher. Infosys Ltd (INFY) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.99%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.77% , the current FCF yield is about -100.00% lower.

6.32

P/B

Median3y

7.61

Median5y

8.14

5.62

FCF Yield

Median3y

3.99

Median5y

3.77

Competitors Valuation Multiple

The average P/S ratio for INFY's competitors is 8.74, providing a benchmark for relative valuation. Infosys Ltd Corp (INFY) exhibits a P/S ratio of , which is -100% above the industry average. Given its robust revenue growth of 4.17%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of INFY decreased by 16.95% 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.

4.17%

4.89B → 5.10B

Revenue Growth

4.28%

15.90 → 16.58

Margin Expansion

-25.40%

30.15 → 22.49

P/E Change

-16.95%

21.95 → 18.23

Mkt Cap Growth

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Frequently Asked Questions

Is Infosys Ltd (INFY) currently overvalued or undervalued?

What is Infosys Ltd (INFY) fair value?

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. The fair price of Infosys Ltd (INFY) is between 23.84 to 28.28 according to relative valuation methord.

How does INFY's valuation metrics compare to the industry average?

The average P/S ratio for INFY's competitors is 8.74, providing a benchmark for relative valuation. Infosys Ltd Corp (INFY) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 4.17%, this premium appears unsustainable.

What is the current P/B ratio for Infosys Ltd (INFY) as of Jan 08 2026?

As of Jan 08 2026, Infosys Ltd (INFY) has a P/B ratio of 6.32. This indicates that the market values INFY at 6.32 times its book value.

What is the current FCF Yield for Infosys Ltd (INFY) as of Jan 08 2026?

As of Jan 08 2026, Infosys Ltd (INFY) has a FCF Yield of 0.00%. This means that for every dollar of Infosys Ltd’s market capitalization, the company generates 0.00 cents in free cash flow.

What is the current Forward P/E ratio for Infosys Ltd (INFY) as of Jan 08 2026?

As of Jan 08 2026, Infosys Ltd (INFY) has a Forward P/E ratio of 21.90. This means the market is willing to pay $21.90 for every dollar of Infosys Ltd’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Infosys Ltd (INFY) as of Jan 08 2026?

As of Jan 08 2026, Infosys Ltd (INFY) has a Forward P/S ratio of 0.00. This means the market is valuing INFY at $0.00 for every dollar of expected revenue over the next 12 months.

INFY Valuation