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 (₹1483.85) is trading above our estimate of fair value (₹763.54)

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?

Other financial metrics that can be useful for relative valuation.

INFY key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.9x
Enterprise Value/EBITDA17x
PEG Ratio2.5x

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 Average29.7x
HCLTECH HCL Technologies
26.5x11.0%₹4.2t
TCS Tata Consultancy Services
31x10.1%₹13.9t
507685 Wipro
21.8x9.8%₹2.5t
TECHM Tech Mahindra
39.3x32.7%₹1.1t
INFY Infosys
25x10.1%₹6.1t

Price-To-Earnings vs Peers: INFY is good value based on its Price-To-Earnings Ratio (25x) compared to the peer average (29.7x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.9%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.9%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: INFY is good value based on its Price-To-Earnings Ratio (25x) compared to the Indian IT industry average (33x).


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 Ratio25x
Fair PE Ratio47.3x

Price-To-Earnings vs Fair Ratio: INFY is good value based on its Price-To-Earnings Ratio (25x) compared to the estimated Fair Price-To-Earnings Ratio (47.3x).


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₹1,483.85
₹1,693.89
+14.2%
9.1%₹2,000.00₹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₹1,160.00n/a38
Oct ’24₹1,435.45
₹1,484.45
+3.4%
9.9%₹1,760.00₹1,150.00n/a38
Sep ’24₹1,443.85
₹1,443.13
-0.05%
9.5%₹1,760.00₹1,130.00n/a39
Aug ’24₹1,365.20
₹1,440.20
+5.5%
9.3%₹1,760.00₹1,130.00n/a41
Jul ’24₹1,335.50
₹1,489.55
+11.5%
9.9%₹1,800.00₹1,150.00n/a40
Jun ’24₹1,319.50
₹1,501.79
+13.8%
10.1%₹1,900.00₹1,150.00n/a39
May ’24₹1,252.75
₹1,517.64
+21.1%
11.1%₹1,950.00₹1,200.00n/a39
Apr ’24₹1,427.95
₹1,721.26
+20.5%
7.2%₹2,075.00₹1,460.00n/a39
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
Oct ’23₹1,413.45
₹1,703.08
+20.5%
9.5%₹2,130.00₹1,275.00₹1,435.4540
Sep ’23₹1,464.20
₹1,723.63
+17.7%
8.2%₹2,130.00₹1,434.00₹1,443.8540
Aug ’23₹1,551.05
₹1,761.57
+13.6%
11.8%₹2,426.00₹1,434.00₹1,365.2042
Jul ’23₹1,479.40
₹1,876.19
+26.8%
11.3%₹2,426.00₹1,385.00₹1,335.5042
Jun ’23₹1,478.55
₹1,943.35
+31.4%
9.8%₹2,426.00₹1,385.00₹1,319.5040
May ’23₹1,567.55
₹2,011.20
+28.3%
7.7%₹2,426.00₹1,570.00₹1,252.7540
Apr ’23₹1,903.55
₹2,149.13
+12.9%
6.7%₹2,440.00₹1,820.00₹1,427.9538
Mar ’23₹1,715.60
₹2,159.92
+25.9%
6.6%₹2,440.00₹1,820.00₹1,496.0538

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


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