INFOSYS LIMITED
INFY.NS NSEInfosys Limited looks about 98% expensive.
The snowflake
checks passed on each axis- Value 1/3 checks
- Future 3/4 checks
- Past 4/4 checks
- Health 6/6 checks
- Dividend 4/6 checks
What does this show?
Five quick health scores — Value, Future, Past, Health and Dividend — each 0–100%. A bigger, more even shape means a stock that scores well across the board; a spiky one is strong on some axes and weak on others.
Learn more on Investopedia →Fair value
our estimate · not analyst forecast98% above our estimate — the price sits over what our numbers support.
How we got there
A 2-stage discounted-cash-flow on free cash flow: grow it at the capped historical trend for five years, fade to a 2.5% long-run rate, discount everything at 9.0%. It's a transparent estimate from past numbers, not a licensed forecast — treat it as one lens, not truth.
What does this show?
Our estimate of what one share is worth based on the cash the business is expected to generate (a discounted-cash-flow model), next to today's price. Below fair value hints undervalued, above hints expensive — it's an estimate, not a guarantee.
Learn more on Investopedia →Health checks
23 checks run on free data- ⚠ Trading below our fair-value estimate -98% vs our DCF estimate
- ⚠ No dividend cut in recent years a cut shows in the record
- ⚠ Earnings growth beats the market 3.6%/yr vs market ~9.0%
- ⚠ More than 20% below fair value -98% margin of safety
- ⚠ Yield in the top quartile of payers yield 4.68% vs 5.05% cut among the 12 payers Otto tracks
- ✓ Debt/equity falling over time long-term debt/equity 6.5% vs 9.4%
Show all 23 checks by axis
Value 1/3 passed
- ⚠ Trading below our fair-value estimate -98% vs our DCF estimate
- – P/B below industry industry P/B not on the free feed
- – P/E below industry industry P/E not on the free feed
- ✓ P/E below peer average P/E 14.2 vs peers 16.1
- – P/S sane vs its own history needs multi-year P/S (Tier B)
- ⚠ More than 20% below fair value -98% margin of safety
Future 3/4 passed
- ✓ Earnings trending up 3.6%/yr over 3yr
- – Growth beats the industry industry growth not on the free feed
- ⚠ Earnings growth beats the market 3.6%/yr vs market ~9.0%
- ✓ Revenue trending up 3.4%/yr over 3yr
- ✓ Return on equity improving ROE 33.9% vs 32.5% 3yr ago
Past 4/4 passed
- ✓ Earnings grew over the period 3.0B → 3.3B
- – High-quality earnings (few one-offs) one-off detection deferred — needs statement detail
- ✓ Growth accelerating vs its average latest 4.9%/yr vs 3.6% average
- ✓ Revenue higher than five years ago 18.2B → 20.2B
- ✓ Return on equity above 20% ROE 31.4%
Health 6/6 passed
- ✓ Debt/equity falling over time long-term debt/equity 6.5% vs 9.4%
- ✓ Debt is under 40% of equity debt/equity 10%
- ✓ Debt well covered by cash flow operating cash flow covers 418.0% of debt
- ✓ Interest comfortably covered by profit EBIT covers interest 96.9×
- ✓ Short-term assets cover long-term debt 10.9B vs 1.1B
- ✓ Short-term assets cover short-term bills 10.9B vs 5.5B
Dividend 4/6 passed
- ✓ Dividend covered by earnings and cash flow covered by both earnings and free cash flow
- ✓ Dividend growing over time over 4yr on record
- ⚠ No dividend cut in recent years a cut shows in the record
- ✓ Payout ratio under 75% payout 64.6% of earnings
- ✓ Yield beats the market yield 4.68% vs market ~1.5%
- ⚠ Yield in the top quartile of payers yield 4.68% vs 5.05% cut among the 12 payers Otto tracks
What does this show?
Pass/fail rules on the company's finances — debt levels, profitability, cash cover and so on. More greens means a sturdier balance sheet; an n/a just means we didn't have that data point.
Learn more on Investopedia →Past performance
recent history from Yahoo FinanceRevenue
Earnings
Free cash flow
dashed line = what it'd look like growing at our ~9% market-average benchmark, for comparison
Deeper 10-yr statements are US-only for now — Otto's showing INFY.NS's Yahoo figures instead.
What does this show?
How revenue, earnings and free cash flow have grown over the years. Bars rising left-to-right show a growing business; the dashed line is a market-average pace for comparison.
Learn more on Investopedia →Future
trend, not analyst forecastRevenue · extended at 3.4%/yr
Earnings · extended at 3.6%/yr
Dashed bars just extend the historical trend (capped at ±15%/yr) — the same growth our DCF uses. It's arithmetic on the past, not an analyst forecast; real futures bend.
What does this show?
Solid bars are history; dashed bars simply extend the past growth trend a few years forward — capped so it stays sane. It's a trend line, not an analyst forecast.
Learn more on Investopedia →Dividend
from cash actually paid, not promisesTotal dividends paid · split-proof, unlike per-share history
What does this show?
The share of profit paid back to shareholders as cash. Yield is that cash as a % of the price; the payout gauge shows how much of earnings is paid out (over ~75% can be hard to sustain).
Learn more on Investopedia →Ownership & insiders
Insider-trade filings come from SEC EDGAR, which covers US companies only — there's no free equivalent for Indian filings yet, so Otto skips this one for INFY.NS.
What does this show?
Buys and sells by the company's own directors and officers, from their SEC filings. Insiders sell for many reasons, but clusters of open-market buying can signal confidence.
Learn more on Investopedia →Competitors
hand-picked peers · tap to jumpWhat does this show?
A few peers in the same business, each with its own mini snowflake, so you can see how this company stacks up rather than judging it in isolation.
Learn more on Investopedia →In the news
- Infosys Limited (INFY) Partners with Sentara To Enable AI Integration and Use in Hospitals
- Asian Equities Traded in the US as American Depositary Receipts Drop Sharply in Tuesday Trading
- Indian IT firms face muted Q1 as AI shift, weak demand weigh
- Madison Square Garden Entertainment Corp. (MSGE) To Remain Fully Operational Amid New York Penn Station Redevelopment
- Infosys (NSEI:INFY) Stock Sees Modest Fair Value Cut As AI Hopes Meet Choppy Demand
- Asian Equities Traded in the US as American Depositary Receipts Surge in Thursday Trading
- Robinhood initiation, Nike downgrade among today's top calls on Wall Street
- Former Infosys chief has a new startup that wants to challenge the IT services world
My notes
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Hi! I can explain INFOSYS's numbers — valuation, health, the dividend, the fair-value gap. What would you like to know?
Otto explains the numbers on this page — not investment advice.