Infosys Limited

NSEI:INFY Stock Report

Market Cap: ₹7.6t

Infosys Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: INFY (₹1824.75) is trading above our estimate of fair value (₹979.96)

Significantly Below Fair Value: INFY is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As INFY is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for INFY. This is calculated by dividing INFY's market cap by their current earnings.
What is INFY's PE Ratio?
PE Ratio27.7x
EarningsUS$3.23b
Market CapUS$89.60b

Price to Earnings Ratio vs Peers

How does INFY's PE Ratio compare to its peers?

The above table shows the PE ratio for INFY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32.7x
HCLTECH HCL Technologies
29.2x9.2%₹4.9t
TCS Tata Consultancy Services
30.8x10.1%₹14.6t
507685 Wipro
25x8.1%₹2.9t
TECHM Tech Mahindra
45.9x24.9%₹1.5t
INFY Infosys
27.7x8.3%₹7.6t

Price-To-Earnings vs Peers: INFY is good value based on its Price-To-Earnings Ratio (27.7x) compared to the peer average (32.7x).

Price to Earnings Ratio vs Industry

How does INFY's PE Ratio compare vs other companies in the IN IT Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GTL GTL
1.2xn/aUS$22.49m
517429 Athena Global Technologies
0.6xn/aUS$15.84m
509040 Netlink Solutions (India)
3.5xn/aUS$5.55m
512341 CES
0.05xn/aUS$130.33k
No more companies available in this PE range
INFY 27.7xIndustry Avg. 34.3xNo. of Companies18PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: INFY is good value based on its Price-To-Earnings Ratio (27.7x) compared to the Indian IT industry average (34.3x).

Price to Earnings Ratio vs Fair Ratio

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

INFY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.7x
Fair PE Ratio54.9x

Price-To-Earnings vs Fair Ratio: INFY is good value based on its Price-To-Earnings Ratio (27.7x) compared to the estimated Fair Price-To-Earnings Ratio (54.9x).

Analyst Price Targets

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

The above table shows the analyst INFY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,824.75
₹2,029.00
+11.2%
10.3%₹2,330.00₹1,530.00n/a43
Nov ’25₹1,760.85
₹2,017.05
+14.5%
11.0%₹2,330.00₹1,503.00n/a44
Oct ’25₹1,904.35
₹1,909.57
+0.3%
11.5%₹2,320.00₹1,503.00n/a44
Sep ’25₹1,943.70
₹1,854.55
-4.6%
10.2%₹2,140.00₹1,445.00n/a44
Aug ’25₹1,852.60
₹1,851.47
-0.06%
10.3%₹2,140.00₹1,445.00n/a43
Jul ’25₹1,590.80
₹1,614.12
+1.5%
8.6%₹1,920.00₹1,160.00n/a43
Jun ’25₹1,406.90
₹1,594.17
+13.3%
8.4%₹1,920.00₹1,160.00n/a42
May ’25₹1,420.55
₹1,592.84
+12.1%
8.4%₹1,920.00₹1,160.00n/a43
Apr ’25₹1,495.45
₹1,687.53
+12.8%
9.0%₹1,985.00₹1,160.00n/a38
Mar ’25₹1,654.70
₹1,686.13
+1.9%
9.2%₹2,000.00₹1,160.00n/a38
Feb ’25₹1,657.05
₹1,669.26
+0.7%
9.5%₹2,000.00₹1,160.00n/a38
Jan ’25₹1,551.35
₹1,546.66
-0.3%
9.9%₹1,870.00₹1,160.00n/a38
Dec ’24₹1,452.30
₹1,524.82
+5.0%
8.4%₹1,760.00₹1,160.00n/a38
Nov ’24₹1,354.15
₹1,522.97
+12.5%
8.4%₹1,760.00₹1,160.00₹1,760.8538
Oct ’24₹1,435.45
₹1,484.45
+3.4%
9.9%₹1,760.00₹1,150.00₹1,904.3538
Sep ’24₹1,443.85
₹1,443.13
-0.05%
9.5%₹1,760.00₹1,130.00₹1,943.7039
Aug ’24₹1,365.20
₹1,440.20
+5.5%
9.3%₹1,760.00₹1,130.00₹1,852.6041
Jul ’24₹1,335.50
₹1,489.55
+11.5%
9.9%₹1,800.00₹1,150.00₹1,590.8040
Jun ’24₹1,319.50
₹1,501.79
+13.8%
10.1%₹1,900.00₹1,150.00₹1,406.9039
May ’24₹1,252.75
₹1,517.64
+21.1%
11.1%₹1,950.00₹1,200.00₹1,420.5539
Apr ’24₹1,427.95
₹1,721.26
+20.5%
7.2%₹2,075.00₹1,460.00₹1,495.4539
Mar ’24₹1,496.05
₹1,745.85
+16.7%
7.2%₹2,075.00₹1,500.00₹1,654.7040
Feb ’24₹1,551.10
₹1,743.40
+12.4%
7.0%₹2,075.00₹1,500.00₹1,657.0543
Jan ’24₹1,508.20
₹1,723.03
+14.2%
8.9%₹2,080.00₹1,475.00₹1,551.3539
Dec ’23₹1,657.10
₹1,709.95
+3.2%
8.7%₹2,080.00₹1,475.00₹1,452.3039
Nov ’23₹1,573.00
₹1,715.20
+9.0%
8.9%₹2,130.00₹1,475.00₹1,354.1540

Analyst Forecast: Target price is less than 20% higher than the current share price.

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