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Infosys Ltd P/E Ratio

Infosys Ltd P/E Ratio

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Infosys Ltd

NSE: INFY

PE

22.7

Last updated : 20 May 01:06 AM

Key Highlights

    The P/E Ratio of Infosys Ltd is 22.7 as of 20 May 01:06 AM .a1#The P/E Ratio of Infosys Ltd changed from 20.9 on March 2019 to 23.7 on March 2024 . This represents a CAGR of 2.12% over 6 years. a1#The Latest Trading Price of Infosys Ltd is ₹ 1443 as of 18 May 15:30 .a1#The PE Ratio of IT - Software Industry has changed from 20.2 to 25.4 in 5 years. This represents a CAGR of 4.69%a1# The PE Ratio of Automobile industry is 27.2. The PE Ratio of Finance industry is 13.6. The PE Ratio of IT - Software industry is 27.9. The PE Ratio of Retail industry is 94.8. The PE Ratio of Textiles industry is 21.1. In 2023a1#The Market Cap of Infosys Ltd changed from ₹ 324305 crore on March 2019 to ₹ 622132 crore on March 2024 . This represents a CAGR of 11.47% over 6 years. a1#The Revenue of Infosys Ltd changed from ₹ 35146 crore to ₹ 40652 crore over 8 quarters. This represents a CAGR of 7.55% a1#The EBITDA of Infosys Ltd changed from ₹ 8540 crore to ₹ 11513 crore over 8 quarters. This represents a CAGR of 16.11% a1#The Net Profit of Infosys Ltd changed from ₹ 5362 crore to ₹ 7975 crore over 8 quarters. This represents a CAGR of 21.96% a1#The Dividend Payout of Infosys Ltd changed from 63.7 % on March 2019 to 70.1 % on March 2024 . This represents a CAGR of 1.61% over 6 years. a1#

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P/E Ratio Over Time

The price-to-earnings ratio (P/E ratio) is a valuation measure calculated by dividing a company's current share price by its earnings per share. P/E Ratio Formula P/E ratio = (CMP of share/ Earning per share) Types of Price to Earning Ratio 1. Forward P/E ratio: It is calculated by simply dividing the price of a single unit of a company along with the estimated earnings of a company derived from its future earning guidance. 2. Trailing P/E ratio: It is the most common metric used by investors where past earnings of a company over a period are considered.

P/E Ratio Over Time

Period
Mar '1920.9
Mar '2016.4
Mar '2130
Mar '2236.2
Mar '2324.5
Mar '2423.7

Fundamental Metrics

Market Cap

599,281 Cr

EPS

62.7

P/E Ratio (TTM) *

22.7

P/B Ratio (TTM) *

7.8

Day’s High

1465.95

Day’s Low

1442.1

DTE *

0.1

ROE *

29.8

52 Week High

1731.0

52 Week Low

1252.2

ROCE *

36.9

* All values are consolidated

* All values are consolidated

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Infosys Ltd

NSE: INFY

PRICE

1443.75

-0.30(-0.02%)

stock direction

Last updated : 18 May 15:30

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PRICE

The current market price or CMP refers to the price at which the securities are trading in the share market. Current price in Over-the-counter costs: The following current price depends upon the bid price & the asking price when a financial asset is sold over-the-counter(OTC). Current Price in Bond Market: The current price of a bond is determined by measuring the actual interest rate against the bid-related interest rate. The par or the face value is then calculated to represent the remaining interest payments due which occur before the maturity of the bond.

Share price Over Time

1M

1Y

3Y

5Y

* All values are in Rupees

SWOT Analysis Of Infosys Ltd

Strength

1

S

Weakness

2

W

Opportunity

0

O

Threats

2

T

BlinkX Score for Infosys Ltd

Revenue

Profitability

Affordability

Liquidity

Dividend

Asset Value vs Market Value

Market Value

5,90,772

Asset Value

81,624

6.2 X

Value addition

* All values are in Rupees

PE Ratio Over Market Cap

Key Valuation Metric

Earnings

26,232 Cr

22.7 X

PE Ratio

Market Cap

₹590772Cr

PE Ratio

PS Ratio

PB Ratio

The price-to-earnings ratio (P/E ratio) is a valuation measure calculated by dividing a company's current share price by its earnings per share.


P/E Ratio Formula


P/E ratio = (CMP of share/ Earning per share)


Types of Price to Earning Ratio


1. Forward P/E ratio: It is calculated by simply dividing the price of a single unit of a company along with the estimated earnings of a company derived from its future earning guidance.
2. Trailing P/E ratio: It is the most common metric used by investors where past earnings of a company over a period are considered.

PE Ratio

PS Ratio

PB Ratio

Earnings

26,232 Cr

22.7 X

PE Ratio

Market Cap

₹590772Cr

PE Ratio

PS Ratio

PB Ratio

The price-to-earnings ratio (P/E ratio) is a valuation measure calculated by dividing a company's current share price by its earnings per share.


P/E Ratio Formula


P/E ratio = (CMP of share/ Earning per share)


Types of Price to Earning Ratio


1. Forward P/E ratio: It is calculated by simply dividing the price of a single unit of a company along with the estimated earnings of a company derived from its future earning guidance.
2. Trailing P/E ratio: It is the most common metric used by investors where past earnings of a company over a period are considered.

PE Ratio of IT - Software Industry over time

PE Ratio of Top Sectors

Infosys Ltd PE Ratio Calculation

  • The Price-to-Earnings (PE) ratio, also known as the P/E Ratio, is a fundamental financial metric used to assess the valuation of a company's stock in relation to its earnings performance. For Infosys Ltd, the PE Ratio is calculated as follows:

P/E Ratio

=

Market Capitalization

Net Income

  • Given the current market conditions, Infosys Ltd's Share Price stands at 1443.75. The Earnings per Share (Diluted) for the trailing twelve months (TTM) ending in 2024-05-18T00:00:00 is 62.7. Substituting the values into the formula, PE Ratio becomes as follows: PE Ratio = 1443.75/ 62.7= 22.7.

P/E Ratio

=

Stock Price

Earning Per Share

  • This indicates that Infosys Ltd's stock is trading at approximately 22.7 times its earnings per share for the trailing twelve months. Alternatively, the PE Ratio can also be computed using the company's overall financial performance: PE Ratio = Market Cap / Net Income. Where Market Cap represents the total market capitalization of the company, and Net Income signifies the total earnings after expenses and taxes.

Understanding Infosys Ltd’s PE Ratio (BSE: INFY)

    The Price-to-Earnings (PE) ratio, used to assess Infosys Ltd's stock (BSE: INFY), indicates how many years it would take for the company to earn back the stock price. If a company earns ₹2 per share annually and its stock trades at ₹30, the PE ratio is 15, signifying a 15-year payback period assuming steady earnings. Earnings fluctuate, affecting the payback period, Growing earnings shorten the recovery time while declining earnings extend it. Shareholders favor shorter payback periods, preferring lower PE stocks. Among stocks with the same PE ratio, faster-growing businesses are preferred. A company with losses makes the PE ratio meaningless. Peter Lynch introduced the PEG ratio to compare stocks with different growth rates, dividing the PE ratio by the growth rate. A company is considered fairly valued when its PE ratio matches its growth rate. The PE ratio, applicable across industries, measures stock valuation based on earnings power. It indicates how quickly an investment can be recouped. Unlike the PB ratio, which assesses valuation based on the balance sheet, the PE ratio focuses on earnings. Overall, the PE ratio provides insights into stock valuation, aligning with investors' preference for faster returns.

×

Market Cap Over Time

Market Cap or market capitalisation refers to metrics that are used to measure a company's size. It is defined as the total market value of a company's outstanding shares of stock. Formula of Market Cap: Market Capital = N * P Here, N for the outstanding shares P refers to the closing price of the company's shares. Types of Companies based on Market Cap: - Small-Cap stocks: Up to 500 Crore - Mid-Cap Stocks: From Rs.500 crore up to Rs.7,000 crore - Large-Cap Stocks: From Rs.7,000 crore up to Rs.20,000 crore

Market Cap Over Time

Period
Mar '19324306
Mar '20272703
Mar '21582752
Mar '22802309
Mar '23592290
Mar '24622132

* All values are a in crore

×

Revenue Over Time

Revenue term means the amount of money a company earns from its primary business activities such as the sales of its products & services. Types of Revenue: 1. Operating revenue: It refers to the income generated from the core business activities, which are sales of goods or services rendered. 2. Non-Operating revenue: It is the income generated from secondary sources unrelated to the primary business. Examples include rents, dividends, interest, and royalty fees. Formula for Revenue: The formula for calculating revenue is based on two goods & services: For goods: Revenue = Avg unit price x Number of Units sold For services: Revenue = Avg unit price x Number of Customers served.

Revenue Over Time

Period
Jun '2235146
Sep '2237122
Dec '2239087
Mar '2238112
Jun '2338494
Sep '2339626
Dec '2339610
Mar '2340652

* All values are a in crore

×

EBITDA Over Time

PBIDT stands for Profit Before Interest, Depreciation, and Taxes. It is a financial metric that measures a company's profitability before accounting for interest expenses, depreciation of assets, and taxes. Formula to calculate PBIDT: PBIDT = Net Income + Interest + Depreciation + Taxes or PBIDT = Operating Income + Depreciation + Taxes PBIDT vs EBITDA vs EBIT vs EBT: Here is a brief explanation of the differences: - PBIDT (Profit Before Interest, Depreciation, and Taxes) includes taxes in its calculation, unlike EBITDA. - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) excludes taxes and interest, focusing on operational performance. - EBIT (Earnings Before Interest and Taxes) excludes interest and taxes, providing a measure of core operational profitability. - EBT (Earnings Before Taxes) includes all operating income but does not account for interest expenses. Conclusion: PBIDT, similar to EBITDA, is a measure of operational profitability but includes taxes in its calculation.

EBITDA Over Time

Period
Jun '228540
Sep '229486
Dec '2210136
Mar '229669
Jun '239625
Sep '2310072
Dec '239926
Mar '2311513

* All values are a in crore

×

Net Profit Over Time

Net profit is the amount of money a company retains after accounting for all expenses, depreciation, interest, taxes, and other deductions. Net Profit formula is expressed as: Net Profit = Total Revenue - Total Expense Net Profit Margin Ratio: Net Profit Margin Ratio = Net Profit / Total Revenue

Net Profit Over Time

Period
Jun '225362
Sep '226026
Dec '226586
Mar '226134
Jun '235945
Sep '236215
Dec '236113
Mar '237975

* All values are a in crore

×

Dividend Payout Over Time

Dividend payout refers to the total dividends paid to shareholders relative to the company's earnings. It is a financial measure that determines the percentage of earnings paid out to existing shareholders as dividends. How to calculate Dividend Payout Ratio? The dividend payout ratio formula is as follows: DPR = Dividends paid / Net earnings With the dividend payout ratio, you can understand the company's priorities. It is an important metric that allows you to easily check DPR online.

Dividend Payout Over Time

Period
Mar '1964
Mar '2048
Mar '2164
Mar '2261
Mar '2361
Mar '2470

* All values are a in %

About Infosys Ltd

About Infosys Ltd

    Infosys Limited is a global technology services firm that defines, designs and delivers information technology (IT)-enabled business solutions to their clients. Infosys' strategy is to be a navigator for our clients as they ideate, plan and execute on their journey to a digital future. The Company has developed Finacle, a universal banking solution to large and medium size banks across India and overseas. Presently, it is having marketing and technical alliance with FileNet, IBM, Intel, Microsoft, Oracle and System Application Products. In the year 2008, the company established their first Latin American subsidiary, namely Infosys Technologies S de R L de C V in Mexico to improve proximity to their North American clients. In December 2009, the company has set up a wholly owned unit in the U.S. to tap the multibillion-dollar opportunities from government projects. SETLabs' IP Cell filed 31 patent applications in the United States Patent and Trademark Office (USPTO) and Indian Patent Office. In February 2012, Bharti Airtel selected the company as its partner for Airtel Money mobile wallet service. Infosys and Cornell University's Center of Hospitality Research Collaborate to Design Industry Research. On 5 March 2015, Infosys announced that it has completed the acquisition of Panaya, Inc., a leading provider of automation technology for large-scale enterprise software management. On 20 August 2015, Infosys announced the launch of enhanced service offerings in Design Thinking, Platforms and Knowledge-Based IT (KBIT). Finacle is the industry-leading universal banking solution from EdgeVerve Systems, a wholly owned subsidiary of Infosys. On 9 December 2015, Infosys announced that it has made an investment of USD 4 million in CloudEndure, a startup that provides Cloud Migration and Cloud-based Disaster Recovery (DR) software. On 12 September 2017, Infosys announced that it would open its North Carolina Technology and Innovation Hub in Raleigh. As part of the agreement, and at the request of CMA CGM, Infosys will open a Delivery Center (DC) in Marseille, which will become a key hub attracting and enhancing local expertise. Through this partnership, Finacle and ToneTag will offer a joint solution that would leverage the latter's sound wave technology to enable proximity payments and interactions. On 4 October 2017, Infosys announced that it has won an order from KONE, a global leader in the elevator and escalator industry, to support its IT transformation. The Board, at its meeting held on 13 July 2018, approved and recommended the issue of bonus shares and increase the liquidity of its shares. The bonus shares were credited to the eligible shareholders as on the record date, i.e. September 5, 2018. The Board at its meeting on 11 January 2019 approved the buyback of equity shares through the open market route through the Indian stock exchanges, amounting to Rs. During the year ended March 31, 2019, 1,26,52,000 equity shares were bought back from the Indian stock exchanges. Panaya Japan Co. Ltd, a wholly-owned subsidiary of Panaya Inc., has been liquidated effective 31 October 2019. During the FY2020, the company has won Asia IP Elite Award 2019, for developing innovative Intellectual Property (IP) functions and creating IP value. Also received ET Now Business Leader of the Year Award for Finance Transformation and Best Financial Reporting.

Infosys Ltd News Hub

News

Infosys inks pact with First Abu Dhabi Bank to modernize IT infrastructure

As part of this collaboration, the company will leverage Infosys Cobalt, a set of services...

Read more

15 May 2024 08:19

News

Infosys launches ASSURE program to drive positive climate action

Infosys along with Alliance for an Energy Efficient Economy (AEEE), India's leading policy...

Read more

09 May 2024 11:11

News

Infosys becomes official Digital Innovation Partner of Formula E

Infosys announced a strategic three-year partnership with the ABB FIA Formula E World Cham...

Read more

09 May 2024 15:39

News

Infosys allots 6.57 lakh equity shares under ESOP

Infosys has allotted 6,57,328 equity shares under ESOP. Consequently, on 02 May 2024, the ...

Read more

03 May 2024 13:01

News

Infosys position as Leader in Application Modernization and Migration Services

Infosys announced that it has been positioned as a Leader in The Forrester Wave?: Applicat...

Read more

02 May 2024 14:33

News

Infosys Q4 PAT climbs 30% QoQ; revises FY25 revenue guidance to 1%-3%

Revenue from operations declined 2.31% to Rs 37,923 crore in Q4 FY24 as compared with Rs 3...

Read more

19 Apr 2024 10:02

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FAQs for PE of Infosys Ltd

What is Infosys Ltd current share price?

The current market price of Infosys Ltd as of May 20, 2024 is ₹1443.75.

Is Infosys Ltd a good investment?

As per BlinkX Score Infosys Ltd scores 58 in Revenue, 57 in Profitability. However it's advisable to conduct comprehensive research or seek advice from experts to evaluate whether it aligns with your investment objectives.

What are Infosys Ltd's total net assets?

According to Infosys Ltd's most recent financial filings, the company's net assets total ₹81624.0 Cr.

Is Infosys Ltd making a profit or loss?

Infosys Ltd's net Profit as of May 20, 2024 is close to ₹26,232 Cr.
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