QualityDipStocks / Technology · IT services
Infosys INFY
In a deep dip: 38% below its 52-week high.
A quality company trading below our fair value estimate.
- Fair value est.
- $15.37+22%
- Market Value
- —
- Off 52-wk high
- −38%
- Risk vs market
- Lowbeta 0.35
5 bullish · 4 bearish See why
Key levels
Every level vs today’s $12.55
- 52-wk lowlowest close, 1 year$10.49−16.4%
- PriceFri Oct 30 close$12.55you are here
- Fair value est.base case$15.37+22.5%
- 52-wk highhighest close, 1 year$20.22+61.1%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 4.2% ±2 points. Bear = 10.5% and 2.2%; bull = 8.5% and 6.2% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, INFY’s free cash flow would need to grow about 1% a year for five years; our estimate uses 4%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much INFY moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves much less than the market, but its own price swings are 3.2× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.35
- Volatility
- 42% vs 13% SPY
- Correlation SPY
- 0.11
- Correlation QQQ
- −0.05
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ValuationOur DCF fair value estimate is $15.37, 22% above the price.
ValuationP/E of 15.6× is 35% below its own average of 24.1× at the last 3 fiscal year-ends.
ValuationP/E of 15.6× vs a 33.9× median for the 138 Technology companies we cover.
TechnicalA company that passes our quality screen, now 38% off its 52-week high (deep dip).
QualityPasses all four of our quality checks: cash generation, returns on capital, growth and balance sheet.
Top bearish points 4 of 5
GrowthSales grew 4.6% over the last 12 months, below the 18% median for the 163 Technology companies we cover.
GrowthSales grew only 3.4% a year from FY2023 to FY2026.
ProfitabilityGross margin of 30%, below the 59% median for the 151 Technology companies we cover.
GrowthDiluted EPS grew 0.0% in the last fiscal year, below the 18% median for the 118 Technology companies we cover.
Who’s talking about it
Notable investors, executives, analysts and public figures on Infosys in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in IT services
All fundamentals
P/E 15.6 · ROE 32% · Sales +5%
Valuation
- P/E
- 15.6×3-yr-end avg 24.1× · Technology median 33.9×
- Price / FCF
- n/anot reported in its SEC filings
- FCF yield
- n/anot reported in its SEC filings
- EV / EBITDA
- n/aD&A or debt not tagged in SEC data
- Price / sales
- 2.57×
- Price / book
- 5.28×
- Market cap
- $51.7Bprice × diluted shares
- Enterprise value
- n/anot reported in its SEC filings
Growth
- Revenue, 12 months
- $20.2B
- Sales growth, 12 months
- +4.6%vs the 12 months before
- Sales growth, 3 yrs
- +3.4%/yrfrom FY2023
- Diluted EPS, 12 months
- n/anot reported in its SEC filings
- EPS growth, last FY
- 0.0%
- Net income, 12 months
- $3.3B
- Net income growth
- +5%12 months vs before
Profitability
- Gross margin
- 30.2%
- Operating margin
- 20.3%
- Net margin
- 16.4%
- FCF margin
- n/anot reported in its SEC filings
- Return on equity
- 32%
- Return on invested capital
- n/aoperating income, debt, equity or cash not tagged
Balance sheet
- Cash & short-term inv.
- $2.3B
- Total debt
- n/anot reported in its SEC filings
- Net cash
- n/acash or debt not tagged in SEC data
- Debt / equity
- n/adebt or equity not tagged in SEC data
- Interest coverage
- 86.9×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- n/anot reported in its SEC filings
- FCF growth, 12 months
- n/anot reported in its SEC filings
- Dividend yield
- 4.13%$2.1B paid
- Payout ratio
- 64%
- Buybacks, 12 months
- $2.0B3.9% of market cap
- Share count, 1 year
- n/ano quarterly diluted share count
- Stock-based comp
- n/anot reported in its SEC filings
Trailing 12 months to Mar 31, 2026; balance sheet at Mar 31, 2026. From Infosys’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $15.37 · FCF value $23.01
Assumes 4.2% growth for 5 years (revenue grew 4.2% a year FY24–FY26), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $0.91 a share (fiscal year to Mar 31, 2026), from the 20-F filed Jun 15, 2026. Capex: purchases of property, plant and equipment (from the filing).
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. We watch it daily for our three reversal signal rules while it sits in a dip.
Momentum & 52-week range
RSI 61 · 5 days +1.6%
The business
FCF $3.6B · Sales +1%
- Free cash flow, 12 months$3.6B
- Free-cash-flow yield7.3%
- Free-cash-flow margin18%
- Gross margin30%
- Operating margin20%
- Return on invested capital32%
- Return on equity33%
- Sales growth (latest quarter vs year-ago quarter)+1%
- Net debt / EBITDA−0.4×
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
Get a text when INFY fires a reversal signal
One text when a published rule fires on INFY or any of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.