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INFOSYS
PE (Price/Earnings) Ratio

The Current P/E Ratio of INFOSYS is 22.80.

Share Price ₹1,441.7Apr 23,2024
Market Cap ₹598,435.3 Cr
Earnings-TTM₹26,248.0 CrTTM-Consolidated Results
Price/Earnings22.80xCalculated as Market Cap/Earnings
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Definition & Calculation of PE (Price/Earnings) ratio of INFOSYS

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

P/E = Market Capitalization / Net Income

or, using per-share numbers:

P/E = Stock Price / Earnings Per Share (EPS)

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

Current Market Cap [ ₹598,435.3 Cr] as on Apr 23,2024

(/) Earnings [ ₹26,248.0 Cr] based on TTM-Consolidated Results

(=) P/E Ratio [ 22.80x ]

P/E Ratio indicates the multiple of earnings investors are willing to pay to own one share of the company.

Thus, for INFOSYS , the investors are currently willing to pay 22.80 times earnings to own 1 share of the company.

PE Multiples are the most widely used valuation multiple in practice.

Since P/E ratio uses Net Income in the calculation, P/E multiples are not always reliable for valuing companies with negative earnings.

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

P/E ratios, also, would not adjust for differences in the capital structure between companies.

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

Historical PE (Price/Earnings) ratio chart of INFOSYS


PE Ratio Performance Analysis for INFOSYS

- INFOSYS 's latest p/e ratio is 22.80x.

- INFOSYS 's p/e ratio for fiscal years ending Mar2024 to Mar2020 averaged 26.15x.

- INFOSYS 's operated at median p/e ratio of 24.52x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, INFOSYS 's p/e ratio peaked in Mar2022 at 36.16x.

- INFOSYS 's p/e ratio hit its five-year low in Mar2020 of 16.36x.


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

Peer Comparison (IT - Software Industry)Earnings-TTM (Cr)PE RatioMarket Cap
INFOSYS 26,248.0022.80598,435.3
TATA CONSULTANCY SERVICES LTD46,099.0030.411,401,720.0
HCL TECHNOLOGIES LTD15,696.0025.70403,413.0
WIPRO LTD11,135.4021.68241,407.0
LTIMINDTREE LTD4,598.0030.41139,844.0
TECH MAHINDRA LTD2,858.5041.01117,226.0
ORACLE FINANCIAL SERVICES SOFTWARE LTD2,138.5429.7863,686.9
PERSISTENT SYSTEMS LTD1,093.4949.7254,365.8
L&T TECHNOLOGY SERVICES LTD1,275.7043.1955,096.2
TATA ELXSI LTD792.2458.1246,046.3
MPHASIS LTD1,566.9127.0542,384.3

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

Top 10 Industry PeersPE Ratio
Min industry PE 21.68x
Max industry PE 58.12x
Median industry PE 30.41x
Average industry PE 34.53x



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