3i Infotech Limited

NSEI:3IINFOLTD Stock Report

Market Cap: ₹4.6b

3i Infotech Valuation

Is 3IINFOLTD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 3IINFOLTD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3IINFOLTD (₹26.98) is trading below our estimate of fair value (₹955.94)

Significantly Below Fair Value: 3IINFOLTD is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3IINFOLTD?

Key metric: As 3IINFOLTD is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 3IINFOLTD. This is calculated by dividing 3IINFOLTD's market cap by their current revenue.
What is 3IINFOLTD's PS Ratio?
PS Ratio0.6x
Sales₹7.67b
Market Cap₹4.57b

Price to Sales Ratio vs Peers

How does 3IINFOLTD's PS Ratio compare to its peers?

The above table shows the PS ratio for 3IINFOLTD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average13.6x
TAC TAC Infosec
43.1xn/a₹8.1b
531161 ABM Knowledgeware
2.7xn/a₹2.5b
530175 Odyssey Technologies
5.9xn/a₹1.7b
RAMCOSYS Ramco Systems
2.8x12.8%₹15.3b
3IINFOLTD 3i Infotech
0.6xn/a₹4.6b

Price-To-Sales vs Peers: 3IINFOLTD is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (13.6x).


Price to Sales Ratio vs Industry

How does 3IINFOLTD's PS Ratio compare vs other companies in the IN Software Industry?

8 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.5.4x14.0%
3IINFOLTD 3i Infotech
0.6xn/aUS$54.17m
532372 Virinchi
1xn/aUS$33.85m
DUCON Ducon Infratechnologies
0.5xn/aUS$25.40m
3IINFOLTD 0.6xIndustry Avg. 5.4xNo. of Companies13PS048121620+
8 CompaniesEstimated GrowthMarket Cap
Industry Avg.5.4x15.9%
3IINFOLTD 3i Infotech
0.6xn/aUS$54.17m
No more companies

Price-To-Sales vs Industry: 3IINFOLTD is good value based on its Price-To-Sales Ratio (0.6x) compared to the Indian Software industry average (5.4x).


Price to Sales Ratio vs Fair Ratio

What is 3IINFOLTD's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3IINFOLTD PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 3IINFOLTD's Price-To-Sales Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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