One-glance verdict
Undervalued
$29.38 our estimate vs market $13.22
Wall Street consensus: $11.67 (-60.3% lower than our fair-value estimate)
55% below our estimate, below the bear case
Fundamentals snapshot
Infosys Limited
INFY · NYQ · Technology · Information Technology Services
Current price
$13.22
52-week range
$10.12 - $30.00
Market cap
$53.55B
Balance sheet
Healthy
87.00x Strong cushion
Net cash $2.20B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 4.6% last year.
- Reward Returns 32.0% on equity, ahead of 75% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Insider ownership is only 0.0% (peer median: 0.0%).
What this company does
Infosys Limited
Infosys is a tech company that helps other businesses with their technology needs, like building software and improving their online presence, with money coming mainly from these services to businesses across many industries worldwide. This matters because when Infosys does well, it means businesses are investing in technology and growing, which can be good for the economy.
How the company got here
Infosys Limited, originally founded as Infosys Technologies Limited in 1981, has grown into a global leader in technology services. The company was a pioneer in India's IT services boom, initially focusing on software development and gradually expanding its offerings. A key turning point was its decision to list on the NASDAQ in 1999, which significantly increased its global visibility and access to capital. This move allowed Infosys to invest heavily in expanding its service portfolio and geographical reach, transforming it from a domestic player into a multinational corporation. The company officially changed its name to Infosys Limited in June 2011, reflecting its broader scope beyond just technology.
What it actually does
Infosys provides a wide range of technology-related services to businesses across various industries. Think of them as a company that helps other companies use technology better. This includes helping them build new software, manage their existing computer systems, protect their data from cyber threats, and adopt new digital tools like artificial intelligence (AI). They also assist with modernizing older computer systems and improving how different software applications talk to each other. Essentially, Infosys acts as a technology partner, offering expertise and solutions to help businesses operate more efficiently and innovate in the digital age.
Consulting and Technology Services
This segment is where Infosys helps clients with their biggest technology challenges and digital transformations. It involves offering advice on how to best use technology, designing and implementing new systems, and managing complex IT projects. This can range from helping a bank update its online banking platform to assisting a manufacturing company in setting up smart factory solutions. This part of the business is crucial for driving innovation and ensuring clients can adapt to the rapidly changing technological landscape. It represents a significant portion of Infosys's overall revenue, acting as a primary driver of growth and client relationships.
Digital and Cloud Services
This business line focuses on helping companies embrace digital technologies and move their operations to the cloud. This includes services like developing AI-powered solutions (like Infosys Topaz), implementing cloud infrastructure, and creating digital experiences for customers. For example, they might help a retail company build a new e-commerce website or assist an airline in migrating its data to a cloud platform for better scalability and efficiency. This segment is a rapidly growing area as more businesses recognize the importance of digital transformation and cloud computing for staying competitive.
Legacy Enterprise Software and Services
Infosys also provides services related to established enterprise software systems, such as those from SAP and Oracle, and helps companies modernize these critical business applications. This involves managing, upgrading, and integrating these systems, which are often the backbone of a company's operations, like finance, human resources, and supply chain management. While newer digital services are growing fast, these foundational services remain a substantial part of Infosys's business, ensuring the smooth functioning of many large organizations. They also offer specialized platforms like Infosys Finacle for banking solutions.
What management is betting on now
Infosys's management is heavily focused on accelerating its digital transformation and cloud offerings, particularly through its AI-first suite, Infosys Topaz. They believe that embracing generative AI and advanced analytics is key to providing clients with cutting-edge solutions and maintaining a competitive edge. Another strategic priority is expanding their presence in key markets and deepening relationships with existing clients by offering end-to-end services. This focus aims to drive future revenue growth and solidify Infosys's position as a leading digital transformation partner for businesses worldwide.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $29.38 vs current price $13.22
Wall Street consensus is the average analyst price target: $11.67 (-60.3% lower than our fair-value estimate).
Our most-likely fair value is $29.38 a share — about 122.2% above today's price of $13.22, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $2.2B - more cash than debt. Interest coverage 87.0x.
Net debt
$-2.20B
Interest coverage
87.00x
Infosys Limited's profit covers its interest bill about 87.0 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
INFY
BASELINE
Infosys Limited
Total debt $923.00M Interest coverage 87.00x This is the baseline the peer rows are being compared against.
Total debt $13.40B Interest coverage 47.43x -45% vs INFY Carries about 1.8x less debt cushion than INFY.
Total debt $2.09B Interest coverage 89.92x +3% vs INFY Has roughly the same debt cushion as INFY.
Total debt $2.33B Interest coverage 18.86x -78% vs INFY Carries about 4.6x less debt cushion than INFY.
What you should know
The case for and against INFY
3 Rewards
1 Risk
Rewards
-
Revenue grew 4.6% last year.
-
Returns 32.0% on equity, ahead of 75% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Insider ownership is only 0.0% (peer median: 0.0%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
15.74x
Forward P/E
15.59x
P/B
11.13x
P/S
2.64x
EV/EBITDA
23.41x
PEG ratio
2.17x
Profitability
How much profit each dollar creates
Gross margin
29.7%
Operating margin
21.2%
Net margin
16.4%
ROE
32.0%
ROA
15.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.10x
Current ratio
1.86x
Quick ratio
1.59x
Total debt
$923.00M
Total cash
$3.12B
Growth
How the business has been compounding
Revenue TTM
$20.30B
Revenue 5Y CAGR
3.4%
EPS TTM
0.84
EPS 5Y CAGR
4.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$4.04B
Free CF TTM
$3.73B
FCF margin
18.4%
Dividend
Shareholder payout
Yield
4.0%
Payout ratio
65.5%
Last ex-div date
2026-06-10