Intrinsic value of Infosys ADR - INFY

Previous Close

$14.79

  Intrinsic Value

$13.48

stock screener

  Rating & Target

hold

-9%

  Value-price divergence*

+4326%

Previous close

$14.79

 
Intrinsic value

$13.48

 
Up/down potential

-9%

 
Rating

hold

 
Value-price divergence*

+4326%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of INFY stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 33.7

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  9.68
  3.40
  3.56
  3.70
  3.83
  3.95
  4.06
  4.15
  4.23
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.63
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.82
  4.84
  4.86
  4.87
  4.89
  4.90
  4.91
  4.92
  4.92
Revenue, $m
  10,253
  10,602
  10,979
  11,386
  11,822
  12,289
  12,788
  13,318
  13,882
  14,481
  15,115
  15,786
  16,496
  17,247
  18,039
  18,875
  19,756
  20,686
  21,665
  22,696
  23,782
  24,924
  26,127
  27,392
  28,723
  30,122
  31,594
  33,141
  34,767
  36,476
  38,273
Variable operating expenses, $m
 
  7,949
  8,230
  8,533
  8,858
  9,206
  9,577
  9,972
  10,392
  10,838
  11,310
  11,756
  12,284
  12,843
  13,433
  14,055
  14,712
  15,404
  16,133
  16,901
  17,709
  18,560
  19,456
  20,398
  21,389
  22,431
  23,527
  24,679
  25,890
  27,163
  28,500
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  7,723
  7,949
  8,230
  8,533
  8,858
  9,206
  9,577
  9,972
  10,392
  10,838
  11,310
  11,756
  12,284
  12,843
  13,433
  14,055
  14,712
  15,404
  16,133
  16,901
  17,709
  18,560
  19,456
  20,398
  21,389
  22,431
  23,527
  24,679
  25,890
  27,163
  28,500
Operating income, $m
  2,530
  2,652
  2,749
  2,852
  2,964
  3,083
  3,210
  3,346
  3,490
  3,643
  3,805
  4,031
  4,212
  4,404
  4,606
  4,819
  5,044
  5,282
  5,532
  5,795
  6,072
  6,364
  6,671
  6,994
  7,334
  7,691
  8,067
  8,462
  8,877
  9,314
  9,772
EBITDA, $m
  2,785
  2,802
  2,902
  3,010
  3,125
  3,248
  3,380
  3,520
  3,670
  3,828
  3,995
  4,173
  4,361
  4,559
  4,768
  4,989
  5,222
  5,468
  5,727
  5,999
  6,286
  6,588
  6,906
  7,241
  7,592
  7,962
  8,351
  8,760
  9,190
  9,642
  10,117
Interest expense (income), $m
  0
  0
  3
  5
  8
  11
  15
  19
  22
  27
  31
  36
  41
  46
  51
  57
  63
  70
  77
  84
  91
  99
  108
  117
  126
  136
  146
  157
  168
  180
  193
Earnings before tax, $m
  2,987
  2,652
  2,746
  2,847
  2,956
  3,072
  3,195
  3,327
  3,467
  3,616
  3,774
  3,995
  4,172
  4,358
  4,555
  4,762
  4,981
  5,212
  5,455
  5,711
  5,981
  6,265
  6,563
  6,878
  7,208
  7,556
  7,921
  8,305
  8,709
  9,134
  9,580
Tax expense, $m
  838
  716
  741
  769
  798
  829
  863
  898
  936
  976
  1,019
  1,079
  1,126
  1,177
  1,230
  1,286
  1,345
  1,407
  1,473
  1,542
  1,615
  1,691
  1,772
  1,857
  1,946
  2,040
  2,139
  2,242
  2,352
  2,466
  2,587
Net income, $m
  2,149
  1,936
  2,005
  2,078
  2,158
  2,242
  2,333
  2,429
  2,531
  2,640
  2,755
  2,916
  3,045
  3,181
  3,325
  3,476
  3,636
  3,805
  3,982
  4,169
  4,366
  4,573
  4,791
  5,021
  5,262
  5,516
  5,782
  6,063
  6,358
  6,668
  6,993

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  4,880
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  12,480
  7,859
  8,139
  8,440
  8,764
  9,110
  9,479
  9,873
  10,291
  10,734
  11,205
  11,702
  12,229
  12,785
  13,372
  13,992
  14,645
  15,334
  16,060
  16,824
  17,629
  18,476
  19,368
  20,306
  21,292
  22,329
  23,420
  24,567
  25,773
  27,040
  28,371
Adjusted assets (=assets-cash), $m
  7,600
  7,859
  8,139
  8,440
  8,764
  9,110
  9,479
  9,873
  10,291
  10,734
  11,205
  11,702
  12,229
  12,785
  13,372
  13,992
  14,645
  15,334
  16,060
  16,824
  17,629
  18,476
  19,368
  20,306
  21,292
  22,329
  23,420
  24,567
  25,773
  27,040
  28,371
Revenue / Adjusted assets
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
  1.349
Average production assets, $m
  920
  954
  988
  1,025
  1,064
  1,106
  1,151
  1,199
  1,249
  1,303
  1,360
  1,421
  1,485
  1,552
  1,623
  1,699
  1,778
  1,862
  1,950
  2,043
  2,140
  2,243
  2,351
  2,465
  2,585
  2,711
  2,843
  2,983
  3,129
  3,283
  3,445
Working capital, $m
  5,942
  1,103
  1,142
  1,184
  1,230
  1,278
  1,330
  1,385
  1,444
  1,506
  1,572
  1,642
  1,716
  1,794
  1,876
  1,963
  2,055
  2,151
  2,253
  2,360
  2,473
  2,592
  2,717
  2,849
  2,987
  3,133
  3,286
  3,447
  3,616
  3,794
  3,980
Total debt, $m
  0
  72
  151
  237
  328
  426
  531
  642
  760
  886
  1,019
  1,160
  1,309
  1,466
  1,632
  1,808
  1,993
  2,188
  2,393
  2,609
  2,837
  3,077
  3,329
  3,594
  3,874
  4,167
  4,476
  4,800
  5,142
  5,500
  5,877
Total liabilities, $m
  2,152
  2,224
  2,303
  2,389
  2,480
  2,578
  2,683
  2,794
  2,912
  3,038
  3,171
  3,312
  3,461
  3,618
  3,784
  3,960
  4,145
  4,340
  4,545
  4,761
  4,989
  5,229
  5,481
  5,746
  6,026
  6,319
  6,628
  6,952
  7,294
  7,652
  8,029
Total equity, $m
  10,328
  5,635
  5,835
  6,052
  6,284
  6,532
  6,797
  7,079
  7,378
  7,697
  8,034
  8,391
  8,768
  9,167
  9,588
  10,032
  10,501
  10,994
  11,515
  12,063
  12,640
  13,247
  13,887
  14,559
  15,266
  16,010
  16,792
  17,615
  18,479
  19,387
  20,342
Total liabilities and equity, $m
  12,480
  7,859
  8,138
  8,441
  8,764
  9,110
  9,480
  9,873
  10,290
  10,735
  11,205
  11,703
  12,229
  12,785
  13,372
  13,992
  14,646
  15,334
  16,060
  16,824
  17,629
  18,476
  19,368
  20,305
  21,292
  22,329
  23,420
  24,567
  25,773
  27,039
  28,371
Debt-to-equity ratio
  0.000
  0.010
  0.030
  0.040
  0.050
  0.070
  0.080
  0.090
  0.100
  0.120
  0.130
  0.140
  0.150
  0.160
  0.170
  0.180
  0.190
  0.200
  0.210
  0.220
  0.220
  0.230
  0.240
  0.250
  0.250
  0.260
  0.270
  0.270
  0.280
  0.280
  0.290
Adjusted equity ratio
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717
  0.717

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,149
  1,936
  2,005
  2,078
  2,158
  2,242
  2,333
  2,429
  2,531
  2,640
  2,755
  2,916
  3,045
  3,181
  3,325
  3,476
  3,636
  3,805
  3,982
  4,169
  4,366
  4,573
  4,791
  5,021
  5,262
  5,516
  5,782
  6,063
  6,358
  6,668
  6,993
Depreciation, amort., depletion, $m
  255
  150
  154
  157
  161
  165
  170
  175
  180
  185
  191
  142
  148
  155
  162
  170
  178
  186
  195
  204
  214
  224
  235
  247
  259
  271
  284
  298
  313
  328
  344
Funds from operations, $m
  968
  2,086
  2,158
  2,236
  2,319
  2,408
  2,502
  2,604
  2,711
  2,825
  2,946
  3,059
  3,194
  3,336
  3,487
  3,646
  3,814
  3,991
  4,177
  4,374
  4,580
  4,798
  5,026
  5,267
  5,520
  5,787
  6,067
  6,361
  6,671
  6,996
  7,338
Change in working capital, $m
  -1,137
  36
  39
  42
  45
  49
  52
  55
  59
  62
  66
  70
  74
  78
  82
  87
  92
  97
  102
  107
  113
  119
  125
  132
  138
  146
  153
  161
  169
  178
  187
Cash from operations, $m
  2,105
  2,050
  2,119
  2,193
  2,273
  2,359
  2,451
  2,548
  2,652
  2,763
  2,880
  2,989
  3,120
  3,258
  3,405
  3,559
  3,722
  3,894
  4,075
  4,266
  4,467
  4,679
  4,901
  5,136
  5,382
  5,641
  5,914
  6,200
  6,502
  6,818
  7,151
Maintenance CAPEX, $m
  0
  -92
  -95
  -99
  -102
  -106
  -111
  -115
  -120
  -125
  -130
  -136
  -142
  -148
  -155
  -162
  -170
  -178
  -186
  -195
  -204
  -214
  -224
  -235
  -247
  -259
  -271
  -284
  -298
  -313
  -328
New CAPEX, $m
  -413
  -34
  -34
  -37
  -39
  -42
  -45
  -48
  -51
  -54
  -57
  -60
  -64
  -68
  -71
  -75
  -79
  -84
  -88
  -93
  -98
  -103
  -108
  -114
  -120
  -126
  -132
  -139
  -146
  -154
  -162
Cash from investing activities, $m
  -2,556
  -126
  -129
  -136
  -141
  -148
  -156
  -163
  -171
  -179
  -187
  -196
  -206
  -216
  -226
  -237
  -249
  -262
  -274
  -288
  -302
  -317
  -332
  -349
  -367
  -385
  -403
  -423
  -444
  -467
  -490
Free cash flow, $m
  -451
  1,924
  1,990
  2,058
  2,132
  2,211
  2,295
  2,385
  2,482
  2,584
  2,692
  2,792
  2,914
  3,042
  3,178
  3,322
  3,473
  3,633
  3,801
  3,978
  4,165
  4,362
  4,569
  4,787
  5,016
  5,257
  5,510
  5,777
  6,057
  6,351
  6,661
Issuance/(repayment) of debt, $m
  0
  72
  79
  85
  92
  98
  105
  111
  118
  126
  133
  141
  149
  157
  166
  175
  185
  195
  205
  216
  228
  240
  252
  265
  279
  294
  309
  325
  341
  359
  377
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  0
  72
  79
  85
  92
  98
  105
  111
  118
  126
  133
  141
  149
  157
  166
  175
  185
  195
  205
  216
  228
  240
  252
  265
  279
  294
  309
  325
  341
  359
  377
Total cash flow (excl. dividends), $m
  -469
  1,996
  2,069
  2,143
  2,223
  2,309
  2,400
  2,497
  2,600
  2,709
  2,825
  2,933
  3,063
  3,200
  3,345
  3,497
  3,658
  3,828
  4,007
  4,195
  4,393
  4,602
  4,821
  5,052
  5,295
  5,550
  5,819
  6,101
  6,398
  6,710
  7,038
Retained Cash Flow (-), $m
  -1,079
  -187
  -201
  -216
  -232
  -248
  -265
  -282
  -300
  -318
  -337
  -357
  -377
  -399
  -421
  -444
  -469
  -494
  -520
  -548
  -577
  -607
  -639
  -672
  -707
  -744
  -782
  -822
  -864
  -908
  -955
Prev. year cash balance distribution, $m
 
  4,880
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  6,689
  1,868
  1,927
  1,991
  2,060
  2,135
  2,215
  2,300
  2,391
  2,488
  2,576
  2,685
  2,801
  2,923
  3,053
  3,190
  3,334
  3,486
  3,647
  3,816
  3,994
  4,182
  4,380
  4,588
  4,807
  5,037
  5,279
  5,534
  5,802
  6,083
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  6,413
  1,710
  1,677
  1,640
  1,597
  1,549
  1,496
  1,438
  1,374
  1,304
  1,223
  1,146
  1,065
  981
  896
  811
  725
  642
  561
  485
  413
  347
  287
  234
  187
  147
  113
  86
  63
  46
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Infosys Limited, together with its subsidiaries, provides consulting, technology, and outsourcing services in North America, Europe, India, and internationally. The company offers business information technology services, including application development and maintenance, independent validation, infrastructure management, business process management, and engineering services consisting of product engineering and life cycle solutions; and consulting and systems integration services comprising consulting, enterprise solutions, systems integration, and advanced technologies. Its products include Infosys Mana, a knowledge-based AI platform; Infosys Information Platform, an analytics platform that enables to get insights from varied data sources for accurate decisions across industries; AssistEdge, CreditFinanceEdge, ProcureEdge, and TradeEdge that are cloud-hosted business platforms; Finacle, a banking platform that provides various solutions, including analytics, banking, origination, payments, SME enable, treasury, and wealth management; and Panaya that enables various SAP and Oracle EBS changes. Infosys Limited serves clients in financial services and insurance; manufacturing and Hi-tech; energy, communications, and services; utilities; retail, consumer packaged goods, and logistics; and life sciences and healthcare industries. Infosys Limited was formerly known as Infosys Technologies Limited and changed its name to Infosys Limited in June 2011. Infosys Limited was founded in 1981 and is headquartered in Bengaluru, India.

FINANCIAL RATIOS  of  Infosys ADR (INFY)

Valuation Ratios
P/E Ratio 15.7
Price to Sales 3.3
Price to Book 3.3
Price to Tangible Book
Price to Cash Flow 16.1
Price to Free Cash Flow 20
Growth Rates
Sales Growth Rate 9.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 1.2%
Cap. Spend. - 3 Yr. Gr. Rate -1%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 0
Management Effectiveness
Return On Assets 18.1%
Ret/ On Assets - 3 Yr. Avg. 18.9%
Return On Total Capital 22%
Ret/ On T. Cap. - 3 Yr. Avg. 23%
Return On Equity 22%
Return On Equity - 3 Yr. Avg. 23%
Asset Turnover 0.9
Profitability Ratios
Gross Margin 36.8%
Gross Margin - 3 Yr. Avg. 37.5%
EBITDA Margin 31.6%
EBITDA Margin - 3 Yr. Avg. 32.8%
Operating Margin 24.7%
Oper. Margin - 3 Yr. Avg. 25.2%
Pre-Tax Margin 29.1%
Pre-Tax Margin - 3 Yr. Avg. 30.5%
Net Profit Margin 21%
Net Profit Margin - 3 Yr. Avg. 21.9%
Effective Tax Rate 28.1%
Eff/ Tax Rate - 3 Yr. Avg. 28.2%
Payout Ratio 48.3%

INFY stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the INFY stock intrinsic value calculation we used $10253 million for the last fiscal year's total revenue generated by Infosys ADR. The default revenue input number comes from 2017 income statement of Infosys ADR. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our INFY stock valuation model: a) initial revenue growth rate of 3.4% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for INFY is calculated based on our internal credit rating of Infosys ADR, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Infosys ADR.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of INFY stock the variable cost ratio is equal to 75%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for INFY stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Infosys ADR.

Corporate tax rate of 27% is the nominal tax rate for Infosys ADR. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the INFY stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for INFY are equal to 9%.

Life of production assets of 10 years is the average useful life of capital assets used in Infosys ADR operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for INFY is equal to 10.4%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $10328 million for Infosys ADR - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 2281.25 million for Infosys ADR is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Infosys ADR at the current share price and the inputted number of shares is $33.7 billion.

RELATED COMPANIES Price Int.Val. Rating
CTSH Cognizant Tech 70.07 65.89  hold
WIT Wipro ADR 5.96 10.75  str.buy
ORCL Oracle 48.62 53.68  hold
SAP SAP ADR 104.82 167.24  str.buy
MSFT Microsoft 72.49 47.21  sell
LXFT Luxoft Holding 48.05 80.15  buy
HPQ HP 18.51 13.95  sell
HPE Hewlett Packar 17.18 35.08  str.buy

COMPANY NEWS

▶ [$$] Vishal Sikka Resigns as Infosys CEO   [Aug-18-17 11:53PM  The Wall Street Journal]
▶ Infosys promised 2,000 jobs for Wake County; now the CEO is gone   [03:25PM  American City Business Journals]
▶ [$$] Infosys: founders' folly   [09:47AM  Financial Times]
▶ Infosys CEO Sikka resigns, blames founders   [07:45AM  Reuters Videos]
▶ [$$] Vishal Sikka Resigns as Infosys CEO   [06:44AM  The Wall Street Journal]
▶ India's Infosys CEO and MD Sikka resigns   [Aug-17-17 11:51PM  Reuters]
▶ Reboot or Booted? Infosys Must Choose   [Aug-16-17 07:00PM  Bloomberg]
▶ India's Infosys Inks Deal to Acquire Brilliant Basics   [Aug-03-17 11:57AM  TheStreet.com]
▶ ETFs with exposure to Infosys Ltd. : July 31, 2017   [Jul-31-17 04:49PM  Capital Cube]
▶ Infosys Wins Three Catalyst Awards at TM Forum Live   [Jul-27-17 06:23AM  CNW Group]
▶ Infosys beats Street 1Q forecasts   [Jul-14-17 11:39PM  Associated Press]
▶ Story Stocks from Briefing.com   [09:58AM  Briefing.com]
▶ Infosys Struggles to Be Cool   [03:24AM  Bloomberg]
▶ Infosys plans 2,000 new tech Jobs in North Carolina by 2021   [Jul-06-17 03:09PM  Associated Press]
▶ Infosys to bring 2,000 jobs to Wake County   [11:27AM  American City Business Journals]
▶ India PM Modi Before Trump Meeting: We Need U.S. Jobs   [Jun-26-17 02:21PM  Barrons.com]
▶ [$$] Infosys Settles Visa Case With New York   [Jun-23-17 03:51PM  The Wall Street Journal]
▶ ETFs with exposure to Infosys Ltd. : June 22, 2017   [Jun-22-17 03:52PM  Capital Cube]
▶ [$$] Infosys culture questioned as its CEO looks abroad   [Jun-19-17 09:22PM  Financial Times]
▶ Infosys is worried, and it shows   [Jun-14-17 03:39AM  Quartz]
▶ Grow Up, Infosys   [03:37AM  Bloomberg]
▶ Indian IT Giants List H-1B Proposals as Risks   [Jun-13-17 06:57AM  Investopedia]
▶ Comerica and DuPont Fabros climb while Endo dives   [Jun-09-17 04:58PM  Associated Press]
Stock chart of INFY Financial statements of INFY
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.