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 57%. 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 merely 21.56% 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 just 5.15% 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 52.23% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BLKB, BR, DOCU, ENV, and FIS 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.
Infosys (NYSE: INFY), the global leader in next-generation digital services and consulting, today announced that it has been selected by Essential Utilities, one of the largest publicly traded water, wastewater and natural gas providers in the U.S., as a strategic partner to drive its digital transformation. Infosys, along with SAP will implement SAP S/4HANA and the SAP Customer Relationship Management and Billing for Utilities package in an agile operating model to enable nimble and real-time decision making while transforming digital user experience and operations for Essential Utilities
Infosys (INFY) inks agreement to acquire GuideVision, an enterprise service management consultancy specialised in offering strategic advisory and support on the ServiceNow platform in Europe.GuideVision's training academy and nearshore capabilities in Czech Republic, Hungary, Poland, and presence in Germany and Finland will strengthen Infosys' ServiceNow capabilities for its clients in Europe. "GuideVision's addition...