INFOSYS LIMITED Valuation

INFY · Information Technology · Current price ₹1,096.5

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DocStoX fair value
₹805
low confidence
Current price
₹1,097
Upside
-26.6%
P/E ratio
15.1x
P/B ratio
4.5x
Verdict
Avoid
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Is INFOSYS LIMITED undervalued?

DocStoX estimates the fair value of INFOSYS LIMITED at ₹805 per share, versus the current market price of ₹1,097. That puts the stock about -26.6% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹426), Relative P/E (₹1,670), Graham floor (₹612). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.

Bear, base and bull scenarios

Our scenarios span ₹426 (bear) to ₹805 (base) to ₹1,670 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

INFOSYS LIMITED trades at a P/E of 15.1x and a P/B of 4.5x, with a dividend yield of 4.6%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on INFOSYS LIMITED

DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.