Infosys Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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.

Discounted Cash Flow
Simply Wall St
US$12.76
Fair Value
72.0% overvalued intrinsic discount
42
Number of Analysts


Key Valuation Metric

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

Key metric:

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 Ratio27.2x
EarningsUS$3.30b
Market CapUS$89.85b

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 Average32.2x
IBM International Business Machines
39.3x12.2%US$238.8b
IT Gartner
39.4x0.2%US$42.3b
CTSH Cognizant Technology Solutions
18.2x8.7%US$41.0b
ACN Accenture
31.8x8.6%US$238.2b
INFY Infosys
27.2x8.0%US$7.8t


Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TAOP Taoping
0.8xn/aUS$1.81m
GTCH GBT Technologies
0.1xn/aUS$1.68m
DLTI DLT Resolution
0.4xn/aUS$353.64k
COWI CarbonMeta Technologies
0.06xn/aUS$21.99k
No more companies available in this PE range
No. of Companies4PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies


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 Ratio27.2x
Fair PE Ratio43.5x


Analyst Price Targets

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

Analyst Price Target
Consensus Narrative from 42 Analysts
US$24.66
Fair Value
11.0% undervalued intrinsic discount
42
Number of Analysts


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/31 11:30
End of Day Share Price 2025/01/31 00:00
Earnings2024/12/31
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Infosys Limited is covered by 97 analysts. 52 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Nitin BhasinAmbit Capital
Ashwin MehtaAmbit Capital
Mohit JainAnand Rathi Shares and Stock Brokers Limited