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INFOSYS
PB (Price/Book ) Ratio

The Current P/B Ratio of INFOSYS is 6.82.

Share Price ₹1,432.5Apr 22,2024
Market Cap ₹594,616.4 Cr
Book Value₹87,203.0 CrMar2024 - Consolidated Results
Price/Book 6.82xCalculated as MarketCap/Book Value
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Definition & Calculation of PB (Price/Book ) ratio of INFOSYS

Price-to-Book ratio, P/B Multiple, or P/B Ratio is an important valuation multiple that is defined as:

P/B = Market Capitalization / Book Value

or, using per-share numbers:

P/B = Stock Price / Book Value Per Share

Applying the above formula, P/B ratio of INFOSYS is calculated as :

Current Market Cap [ ₹594,616.4 Cr] as on Apr 22,2024

(/) Book Value [ ₹87,203.0 Cr] based on Mar2024 - Consolidated Results

(=) P/B Ratio [ 6.82x ]

P/B Ratio indicates 'the multiple of book value' investors are willing to pay to own one share of the company.

Thus, for INFOSYS , the investors are currently willing to pay '6.82 times book value' to own 1 share of the company.

PB Multiples are one of the most widely used valuation multiple in industry.

Since P/B ratio uses Book Value in the calculation, P/B multiples are not always reliable for valuing companies with negative book value.

In such cases, you may consider using Price to Earnings ratio or Price to Sales ratio of INFOSYS !

The chart below summarizes the trend in P/B Ratio of INFOSYS over the last five years.

Historical PB (Price/Book ) ratio chart of INFOSYS


PB Ratio Performance Analysis for INFOSYS

- INFOSYS 's latest p/b ratio is 6.82x.

- INFOSYS 's p/b ratio for fiscal years ending Mar2024 to Mar2020 averaged 7.51x.

- INFOSYS 's operated at median p/b ratio of 7.65x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, INFOSYS 's p/b ratio peaked in Mar2022 at 10.7x.

- INFOSYS 's p/b ratio hit its five-year low in Mar2020 of 4.17x.


How does INFOSYS 's P/B Ratio benchmark against top 10 peers in IT - Software Industry?

Peer Comparison (IT - Software Industry)Book ValuePB RatioMarket Cap
INFOSYS 87,203.006.82594,616.4
TATA CONSULTANCY SERVICES LTD90,489.0015.461,398,550.0
HCL TECHNOLOGIES LTD65,017.006.12397,769.0
WIPRO LTD74,533.003.24241,381.0
LTIMINDTREE LTD16,108.208.60138,597.0
TECH MAHINDRA LTD27,540.404.28117,963.0
ORACLE FINANCIAL SERVICES SOFTWARE LTD7,305.658.9465,345.4
PERSISTENT SYSTEMS LTD3,735.8414.4854,080.8
L&T TECHNOLOGY SERVICES LTD4,857.1011.2954,855.1
TATA ELXSI LTD2,085.7722.2046,309.7
MPHASIS LTD7,731.085.4742,280.4

IT - Software Industry Benchmark (Top 10) PB Analysis vs INFOSYS 's P/B Ratio

Top 10 Industry PeersPB Ratio
Min industry PB 3.24x
Max industry PB 22.20x
Median industry PB 8.60x
Average industry PB 9.72x



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