Infosys Limited

India Country flag India
Sector: Computer Services
Ticker: 500209
ISIN: INE009A01021
Factsheet Factsheet

Market multiple valuation of Infosys Limited ( 500209 | IND)

The most common multiple used in the valuation of stocks is the P/Earnings NTM multiple (Price to Earnings). P/E relates the current share price with the market expectations in terms of Earnings Per Share. This multiple is used to compare a company's market value with its earnings. A company with a high P/Earnings NTM is considered to be overvalued; a company with a low P/Earnings NTM is considered to be undervalued.
The P/Earnings NTM ratio of Infosys Limited is significantly higher than the median of its peer group: around 16.00. The company valuation of Infosys Limited according to these metrics is way above the market valuation of its peer group.
The P/Earnings NTM ratio of Infosys Limited is significantly higher than the average of its sector (Computer Services): 15.95. The company valuation of Infosys Limited according to these metrics is way above the market valuation of its sector.
The P/Earnings NTM ratio of Infosys Limited is lower than its historical 5-year average: 24.1. The (current) company valuation of Infosys Limited is therefore below its valuation average over the last five years.

Valuation
P/E Last P/E (e) 2025P/E NTM
Infosys LimitedFree trialFree trialFree trial
International PeersFree trialFree trialFree trial
Computer Services14.1315.8515.95
BSE SENSEXN/AN/AN/A
India20.4621.8421.92
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Beta (Ref: BSE SENSEX)
Levered betaUnlevered beta
1-YearN/AN/A
2-YearN/AN/A
3-YearN/AN/A
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Stock Perf excl. Dividends (in INR)
500209BSE SENSEXRel. Perf.
Year-to-Date-21.3%0.9%-22.2%
1-Week2.2%0.8%1.3%
1-Month-5.6%1.5%-7.2%
1-Year3.6%6.6%-2.9%
3-Year-6.4%40.0%-46.4%
5-Year124.2%152.9%-28.6%
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International Peers - Infosys Limited
Company NameCtryMarket
Cap.
last (mUSD)
Infosys LimitedIND72 714
International Peers Median1.56
Cognizant Technology So...USA36 363
ATOS SEFRA-0.00
Mindtree LimitedINDN/A
Tech Mahindra LimitedIND15 309
eClerx Services LimitedIND1 417
GPRV Analysis
Created with Highcharts 4.1.70/102/104/106/108/1010/10
Infosys Limited
Intl. Peers
U.S Patents No. 7,882,001 & 8,082,201
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Net Sales Chart
Created with Highcharts 4.1.7Millions INR201920202021202220232024 (e)2025 (e)2026 (e)2027 (e)0M1M2M3M
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Quotes Chart

1-Year Rebased Stock Chart

  • Infosys Limited
  • BSE SENSEX
Created with Highcharts 4.1.7Jan '25May '24Sep '24-20%0%20%40%60%
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Did you know ?

On the Infront Analytics platform, there are two ways to identify the listed peers which most closely resemble a private firm:
- with Peer Tracker if you already know a listed peer.
Peer Tracker is a patented technology tool for building peer groups using industry classifications. The degree of similarity between two companies is calculated comparing their sector footprints and measured using comparability scores.
- with Market Screener if you have no listed peer in mind.
Market Screener is a dedicated interface for screening companies using multiple criteria, identifying peers, searching for comparable companies in a specific business sector.

About Market Multiples

Many methods can be used to value a company. In reality, business valuation is often a combination of these different approaches. One of the most widely used quantitative methods is the market multiples method. The market valuation is utilized generally as a primary market input, to provide an objective starting point for the valuation. Put simply, this method multiplies the sales or profits of a business by an industry averaged multiplier to calculate the Market Value of the business.
Current multiples include:
- Historical multiples based on standardized financials for the last completed fiscal period: Last, Last Twelve Months (LTM);
- Forward multiples based on consensus estimates for the current fiscal period and next ones: Next Twelve Months (NTM), FY0, FY1.
Current multiples based on per-share metrics (such as earnings per share or book value per share) are calculated using the last closing price, while current multiples based on company-level metrics (such as net sales, EBIT or EBITDA) are calculated using the current market cap or EV (Enterprise Value).