Persistent Systems Limited

NSEI:PERSISTENT Stock Report

Market Cap: ₹838.8b

Persistent Systems Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • 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 PERSISTENT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PERSISTENT (₹5725.5) is trading above our estimate of fair value (₹944.5)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PERSISTENT. This is calculated by dividing PERSISTENT's market cap by their current earnings.
What is PERSISTENT's PE Ratio?
PE Ratio68.2x
Earnings₹12.33b
Market Cap₹838.84b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PERSISTENT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average49.5x
COFORGE Coforge
68.8x27.0%₹541.9b
LTIM LTIMindtree
37.7x14.7%₹1.7t
526299 Mphasis
33.1x13.7%₹528.3b
TATATECH Tata Technologies
58.5x16.6%₹384.8b
PERSISTENT Persistent Systems
68.2x20.4%₹838.8b

Price-To-Earnings vs Peers: PERSISTENT is expensive based on its Price-To-Earnings Ratio (68.2x) compared to the peer average (49.5x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GTL GTL
1.1xn/aUS$22.47m
517429 Athena Global Technologies
0.6xn/aUS$15.83m
509040 Netlink Solutions (India)
3.2xn/aUS$5.54m
512341 CES
0.05xn/aUS$130.33k
No more companies available in this PE range
PERSISTENT 68.2xIndustry Avg. 34.3xNo. of Companies19PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PERSISTENT is expensive based on its Price-To-Earnings Ratio (68.2x) compared to the Indian IT industry average (34.3x).

Price to Earnings Ratio vs Fair Ratio

What is PERSISTENT'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.

PERSISTENT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio68.2x
Fair PE Ratio45.9x

Price-To-Earnings vs Fair Ratio: PERSISTENT is expensive based on its Price-To-Earnings Ratio (68.2x) compared to the estimated Fair Price-To-Earnings Ratio (45.9x).

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 PERSISTENT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹5,725.50
₹5,416.88
-5.4%
16.3%₹6,750.00₹3,090.00n/a33
Nov ’25₹5,389.00
₹5,364.94
-0.4%
17.2%₹6,750.00₹3,090.00n/a34
Oct ’25₹5,487.75
₹4,892.12
-10.9%
19.9%₹6,500.00₹2,965.00n/a33
Sep ’25₹5,170.85
₹4,543.09
-12.1%
17.3%₹5,920.00₹2,780.00n/a33
Aug ’25₹4,796.45
₹4,480.22
-6.6%
16.8%₹5,920.00₹2,780.00n/a32
Jul ’25₹4,496.15
₹3,778.35
-16.0%
17.5%₹4,790.00₹1,675.00n/a31
Jun ’25₹3,410.50
₹3,723.39
+9.2%
14.8%₹4,790.00₹2,400.00n/a31
May ’25₹3,368.60
₹3,678.61
+9.2%
17.9%₹4,790.00₹1,675.00n/a31
Apr ’25₹3,996.65
₹3,809.70
-4.7%
21.4%₹4,985.00₹1,675.00n/a30
Mar ’25₹4,299.50
₹3,857.78
-10.3%
19.0%₹4,985.00₹1,675.00n/a30
Feb ’25₹4,147.88
₹3,813.58
-8.1%
19.9%₹4,985.00₹1,675.00n/a31
Jan ’25₹3,658.95
₹3,030.26
-17.2%
17.9%₹4,265.00₹1,675.00n/a31
Dec ’24₹3,216.65
₹2,882.77
-10.4%
15.4%₹3,695.00₹1,675.00n/a30
Nov ’24₹3,105.50
₹2,873.17
-7.5%
15.9%₹3,950.00₹1,675.00₹5,389.0030
Oct ’24₹2,898.35
₹2,629.33
-9.3%
16.0%₹3,950.00₹1,675.00₹5,487.7530
Sep ’24₹2,771.65
₹2,551.03
-8.0%
17.3%₹4,095.00₹1,675.00₹5,170.8529
Aug ’24₹2,404.78
₹2,520.00
+4.8%
17.2%₹4,095.00₹1,675.00₹4,796.4528
Jul ’24₹2,505.53
₹2,503.44
-0.08%
17.8%₹4,095.00₹1,675.00₹4,496.1527
Jun ’24₹2,586.75
₹2,505.67
-3.1%
18.6%₹4,220.00₹1,675.00₹3,410.5026
May ’24₹2,368.63
₹2,459.40
+3.8%
19.4%₹4,220.00₹1,675.00₹3,368.6026
Apr ’24₹2,304.75
₹2,437.36
+5.8%
21.5%₹4,220.00₹1,675.00₹3,996.6522
Mar ’24₹2,454.05
₹2,387.59
-2.7%
23.4%₹4,220.00₹1,512.50₹4,299.5023
Feb ’24₹2,342.18
₹2,285.32
-2.4%
22.3%₹4,220.00₹1,512.50₹4,147.8825
Jan ’24₹1,935.45
₹2,037.58
+5.3%
15.8%₹2,710.00₹1,435.00₹3,658.9524
Dec ’23₹2,161.95
₹2,033.08
-6.0%
15.8%₹2,710.00₹1,435.00₹3,216.6525
Nov ’23₹1,882.28
₹2,048.73
+8.8%
15.8%₹2,710.00₹1,435.00₹3,105.5026

Analyst Forecast: Target price is lower than the current share price.

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