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 ($21.53) is trading above our estimate of fair value ($13.57)

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 Ratio	28.3x
Earnings	US$3.23b
Market Cap	US$91.46b

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/Revenue	4.7x
Enterprise Value/EBITDA	20.5x
PEG Ratio	3.4x

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.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	28.8x
IBM International Business Machines	29.7x	10.5%	US$193.2b
IT Gartner	37.9x	0.5%	US$41.4b
ACN Accenture	30.4x	9.5%	US$226.2b
CTSH Cognizant Technology Solutions	17x	9.4%	US$40.0b
INFY Infosys	28.3x	8.4%	US$7.7t

Price-To-Earnings vs Peers: INFY is good value based on its Price-To-Earnings Ratio (28.3x) compared to the peer average (28.8x).

Price to Earnings Ratio vs Industry

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

5 Companies	Price / Earnings	Estimated Growth	Market Cap
TAOP Taoping	1.1x	n/a	US$2.59m
GTCH GBT Technologies	0.3x	n/a	US$1.68m
DLTI DLT Resolution	0.3x	n/a	US$228.03k
TMNA Agri-Fintech Holdings	0.0004x	n/a	US$129.25k

5 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: INFY is good value based on its Price-To-Earnings Ratio (28.3x) compared to the US IT industry average (46.9x).

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 Ratio	28.3x
Fair PE Ratio	44.5x

Price-To-Earnings vs Fair Ratio: INFY is good value based on its Price-To-Earnings Ratio (28.3x) compared to the estimated Fair Price-To-Earnings Ratio (44.5x).

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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