Infosys Stock Valuation


USD 18.49  1.09  5.57%   

Do you wonder what the value of Infosys Ltd ADR is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Infosys, is its stock price multiplied by the total number of shares outstanding, calculating Infosys' enterprise value requires a different approach. It uses Infosys' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Enterprise Value is likely to rise to about 111.6 B in 2022, whereas Free Cash Flow is likely to drop slightly above 3.7 B in 2022.
Infosys Ltd ADR retains a regular Real Value of $22.72 per share. The prevalent price of the firm is $18.49. At this time, the firm appears to be undervalued. Our model calculates the value of Infosys Ltd ADR from evaluating the firm fundamentals such as Current Valuation of 82.33 B, return on asset of 0.16 %, and Return On Equity of 0.31 % as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage acquiring undervalued assets and dropping overvalued assets since, at some point, asset prices and their ongoing real values will come together.
Infosys Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Infosys's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Today 18.49
Please note that Infosys' price fluctuation is very steady at this time. Calculation of the real value of Infosys Ltd ADR is based on 3 months time horizon. Increasing Infosys' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Infosys Ltd ADR is useful when determining the fair value of the Infosys stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Infosys. Since Infosys is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Infosys Stock. However, Infosys' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Real Value
Estimating the potential upside or downside of Infosys Ltd ADR helps investors to forecast how Infosys stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Infosys more accurately as focusing exclusively on Infosys' fundamentals will not take into account other important factors:
Estimates (7)
LowProjected EPSHigh
LowEstimated ValueHigh
Annual Dividend
LowIncome Per ShareHigh
9 Analysts
LowTarget PriceHigh
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Infosys' intrinsic value based on its ongoing forecasts of Infosys' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Infosys' closest peers. When choosing an evaluation method for Infosys Ltd ADR, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Infosys Investments

2.13 Billion

Infosys Valuation Drivers Correlation

Many accounts on the financial statements of Infosys Ltd ADR are highly interrelated and sometimes correlated. Consequently, when conducting Infosys's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Infosys
Click cells to compare fundamentals

Infosys Valuation Trend

Knowing Infosys' actual value is paramount for traders to make sound investment determinations. Infosys' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Infosys' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Infosys' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Infosys Market Cap

Infosys Ltd ADR is currently regarded as number one stock in market capitalization category among related companies. Market capitalization of Information Technology industry is currently estimated at about 639.22 Billion. Infosys retains roughly 82.79 Billion in market capitalization claiming about 13% of equities under Information Technology industry.
Capitalization  Workforce  Total debt  Revenue  Valuation

Infosys Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Infosys's current stock value. Our valuation model uses many indicators to compare Infosys value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Infosys competition to find correlations between indicators driving Infosys's intrinsic value. More Info.
Infosys Ltd ADR is currently regarded as number one stock in last dividend paid category among related companies. It is currently regarded as number one stock in beta category among related companies totaling about  1.60  of Beta per Last Dividend Paid. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Infosys by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Infosys' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Infosys' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Infosys' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Infosys and how it compares across the competition.

About Infosys Valuation

The stock valuation mechanism determines the current worth of Infosys Ltd ADR on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Infosys Ltd ADR. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Infosys Ltd ADR based exclusively on its fundamental and basic technical indicators. By analyzing Infosys's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Infosys's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Infosys. We calculate exposure to Infosys's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Infosys's related companies.
Last ReportedProjected for 2022
Gross Profit5.3 BB
Profit Margin 0.18  0.19 
Infosys' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Infosys' value is low or high relative to the company's performance and growth projections. Determining the market value of Infosys can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Infosys represents a small ownership stake in the entity. As a stockholder of Infosys, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Infosys Dividends Analysis For Valuation

Dividend Yield is likely to rise to 0.0204 in 2022, whereas Payment of Dividends and Other Cash Distributions is likely to drop (1.8 B) in 2022. . Accumulated Retained Earnings Deficit is likely to rise to about 12.1 B in 2022, whereas Earning Before Interest and Taxes EBIT is likely to drop slightly above 3.9 B in 2022.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-1.7 B-1.8 B
Dividend Yield 0.016  0.0204 
Dividends per Basic Common Share 0.40  0.34 
There are various types of dividends Infosys can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Infosys shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Infosys Ltd ADR directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Infosys pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Infosys by the value of the dividends paid out.

Infosys Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Infosys does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
DescriptionInfosys Limited, together with its subsidiaries, provides consulting, technology, outsourcing, and next-generation digital services in North America, Europe, India, and internationally. It provides application development and management, independent vali
Quarterly Earnings Growth Y O Y0.049

Infosys Current Valuation Indicators

Valuation refers to the process of determining the present value of Infosys Ltd ADR and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Infosys we look at many different elements of the entity such as Infosys's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Infosys' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Infosys' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Infosys, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Infosys' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Infosys' worth.
Please see Risk vs Return Analysis. Note that the Infosys Ltd ADR information on this page should be used as a complementary analysis to other Infosys' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

Complementary Tools for Infosys Stock analysis

When running Infosys Ltd ADR price analysis, check to measure Infosys' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Infosys is operating at the current time. Most of Infosys' value examination focuses on studying past and present price action to predict the probability of Infosys' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Infosys' price. Additionally, you may evaluate how the addition of Infosys to your portfolios can decrease your overall portfolio volatility.
Money Managers
Screen money managers from public funds and ETFs managed around the world
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Is Infosys' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Infosys. If investors know Infosys will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Infosys listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Infosys Ltd ADR is measured differently than its book value, which is the value of Infosys that is recorded on the company's balance sheet. Investors also form their own opinion of Infosys' value that differs from its market value or its book value, called intrinsic value, which is Infosys' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Infosys' market value can be influenced by many factors that don't directly affect Infosys' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Infosys' value and its price as these two are different measures arrived at by different means. Investors typically determine Infosys value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Infosys' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.