Infosys Limited American Depositary Shares (INFY): Price and Financial Metrics

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INFY Price/Volume Stats

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

Below please find a table outlining a discounted cash flow forecast for INFY, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Infosys Ltd ranked in the 25th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Infosys Ltd ended up being:

• The compound growth rate in the free cash flow of Infosys Ltd over the past 5.03 years is 0.02%; that's higher than just 17.69% of free cash flow generating stocks in the Technology sector.
• The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately only 6.32% 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 3%; for context, that number is higher than 56.39% of tickers in our DCF set.

HMSY, TRMB, COHR, COMM, and JKHY can be thought of as valuation peers to INFY, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.