Infosys Limited American Depositary Shares (INFY) Company Bio
Infosys Ltd. provides business consulting, technology, engineering, and outsourcing services in North America, Europe, India, and internationally. The Company also offers products, platforms and solutions to clients in different industries. The company was founded in 1981 and is based in Bengaluru, India.
INFY Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Infosys Ltd with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Infosys Ltd ranked in the 25th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 64.83%. As for the metrics that stood out in our discounted cash flow analysis of Infosys Ltd, consider:
In the past 5.03 years, Infosys Ltd has a compound free cash flow growth rate of 0.02%; that's better than merely 21.28% of cash flow producing equities in the Technology sector, where it is classified.
The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately just 5.77% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
INFY's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 55.25% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as INFY, try INIS, MANT, AKAM, CNDT, and COHU.
Mumbai: CLSA has upgraded Tech Mahindra to ‘buy’ and rated Infosys and HCL Technologies as its preferred picks ahead of the September quarter results season.The foreign brokerage also said the risk-reward for TCS is attractive at current levels. CLSA has maintained a ‘buy’ rating on HCL Tech and raised the price target by 11.5% to Rs 970. It has also maintained a ‘buy’ rating on Infosys, while raising target price to Rs 1,180 from Rs 1,150. The brokerage has also raised the target price of for TCS to Rs 2,610 from Rs 2,550 while retaining its ‘outperform’ recommendation."Our conversations with Tech Mahindra management lead us to take a more optimistic view on potential margin expansion; hence the 11.5% upgrade to our FY22/23 EPS forecasts. Valuations at 15 times FY22 EPS appear attracti...
Information technology (IT) stocks in intra-day trade on September 29, 2020 rallied up to 3% on media report that the US government is working to push through another stimulus package worth $2.4 trillion. On the news, TCS gained