Infosys Limited (INFY.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+221.4%

₹3,659.09

vs ₹1,138.50 price

Levered DCF

₹5,347.25

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

560.01

Safe zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	17.82×	23.67×	23.59×	24.78×	36.31×	29.99×	16.46×	21.31×
P/B	5.77×	6.6×	7.03×	7.93×	10.65×	7.58×	4.14×	5.05×
P/S	2.94×	3.88×	4.03×	4.07×	6.6×	5.78×	3.01×	3.97×
EV / EBITDA	11.93×	15.49×	16.56×	16.64×	24.79×	19.82×	11.44×	14.54×
Gross margin	26.3%	26.3%	26.2%	26.5%	28.3%	30.0%	28.4%	34.8%
Operating margin	21.3%	21.5%	21.0%	21.4%	23.4%	24.9%	21.8%	23.2%
Net margin	16.5%	16.4%	17.1%	16.4%	18.2%	19.3%	18.3%	18.6%
Current ratio	1.98×	2.27×	2.31×	1.81×	2×	2.55×	2.62×	2.84×
Debt / equity	0.1×	0.09×	0.09×	0.11×	0.07×	0.07×	0.07×	0×
Interest coverage	91.35×	84.16×	68.68×	110.48×	142.21×	128.52×	116.23×	0×
Dividend yield	3.8%	3.3%	2.4%	2.3%	1.6%	1.5%	3.8%	4.1%
Payout ratio	67.4%	77.4%	56.5%	57.8%	58.4%	46.4%	62.5%	87.9%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	32.4%	27.9%	29.8%	32.0%	29.3%	25.3%	25.2%	23.7%
Return on invested capital	26.7%	22.9%	23.3%	25.8%	24.6%	21.4%	20.4%	21.2%
Return on assets	19.3%	17.9%	19.1%	19.2%	18.8%	17.8%	17.7%	18.2%
Free cash flow yield	6.6%	5.5%	3.9%	3.5%	2.9%	3.8%	6.0%	4.0%
Earnings yield	5.6%	4.2%	4.2%	4.0%	2.8%	3.3%	6.1%	4.7%
Enterprise value	₹5.1T	₹6.2T	₹6.1T	₹5.9T	₹7.9T	₹5.6T	₹2.6T	₹3.1T
Net debt / EBITDA	-0.3×	-0.41×	-0.17×	-0.11×	-0.38×	-0.69×	-0.62×	-0.92×
Cash conversion cycle (days)	105	101	115	98	93	94	87	77