One-glance verdict
Undervalued
$22.61 our estimate vs market $11.35
Wall Street consensus: $11.67 (-48.4% lower than our fair-value estimate)
50% below our estimate, below the bear case
Fundamentals snapshot
Infosys Limited
INFY · NYQ · Technology · Information Technology Services
Current price
$11.35
52-week range
$10.30 - $30.00
Market cap
$45.97B
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 large technology consulting company that helps businesses around the world run their digital operations, from building custom software to managing their IT services. It makes money by charging for these large, often long-term projects across a wide variety of industries, like banking, healthcare, and retail. This diverse customer base means the company isn't overly reliant on the success of any single industry, which can help provide stability to its business.
How the company got here
Infosys was started in 1981 by seven engineers in India with just $250. The company's growth took off in the early 1990s when India's economy opened up, allowing them to expand and attract global clients. A major step was listing on the Nasdaq stock exchange in the U.S. in 1999, which made it the first Indian company to do so and helped it gain international recognition. Over the years, Infosys has grown from a small software development firm into a global technology consulting giant.
What it actually does
Infosys helps large companies around the world manage their technology and operations. Think of them as a technology and business consultant that other big businesses hire to build and improve their computer systems, software, and business processes. For example, they might help a bank build a new mobile banking app, manage a retailer's online store, or streamline a manufacturing company's supply chain (the process of getting products from the factory to the customer). They get paid by these large enterprises for their services, often through long-term contracts.
Financial Services
This is Infosys's largest area of business, serving clients like banks, insurance companies, and financial markets. They provide services such as developing and managing core banking systems, creating trading platforms, and ensuring cybersecurity for financial data. A key offering is Finacle, their own banking software platform that many banks use to run their operations. This segment is a major part of the company's revenue.
Retail, Consumer Goods & Logistics
Infosys works with retailers, companies that make everyday products, and the logistics firms that transport them. They help these businesses with things like setting up and running e-commerce websites, managing their supply chains to make sure products get to stores and customers efficiently, and analyzing customer data to understand buying habits. This helps these companies stay competitive and improve their sales.
Manufacturing
In this area, Infosys provides technology services to companies that make things, from cars to industrial equipment. This includes modernizing factory systems, using data to predict when machinery might need maintenance, and creating more efficient production processes. The goal is to help manufacturers operate more smoothly and reduce costs.
Communications, Media & Technology
This segment serves telecommunication companies, media and entertainment firms, and other technology businesses. Infosys helps these clients with tasks like developing new digital media platforms, managing large networks, and creating better digital experiences for their customers. For example, they might help a media company build a streaming service or a telecom provider improve its customer service systems.
Energy, Utilities & Public Sector
Infosys provides services to energy companies, utility providers (like electricity and water companies), and government organizations. They help these clients with things like managing their infrastructure, improving the efficiency of energy grids, and developing digital services for citizens. This can involve everything from modernizing an electric company's billing system to helping a government agency move its services online.
What management is betting on now
Infosys is heavily focused on artificial intelligence (AI), offering a suite of services called Infosys Topaz to help businesses use AI for everything from improving customer service to making their operations more efficient. They are also pushing further into digital transformation, which means helping their clients update their technology and business processes for the modern, digital world. Additionally, the company has set ambitious Environmental, Social, and Governance (ESG) goals, aiming to become 'climate positive' by 2030 and expand digital skills training for millions of people.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $22.61 vs current price $11.35
Wall Street consensus is the average analyst price target: $11.67 (-48.4% lower than our fair-value estimate).
Our most-likely fair value is $22.61 a share — about 99.2% above today's price of $11.35, 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 $2.21B 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)
14.01x
Forward P/E
13.39x
P/B
9.56x
P/S
2.26x
EV/EBITDA
20.03x
PEG ratio
1.82x
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
0.81
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
4.6%
Payout ratio
64.6%
Last ex-div date
2026-06-10