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Infosys Limited (INFY) Fair Value & Analysis

Technology · IN · Market cap ₹4.3T

IL Infosys Limited INFY · NSE
Price₹1,175
Fair Value₹1,998
Upside+70.0%
Quality83/100
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Healthy Growth
Solidly profitable · 16.4% net margin
generates free cash flow
Ranks above peers (9/14)
Wide moat 82/100
Evidence: High Range ₹1,189 – ₹2,490 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated today

Fair value updated Aug 13, 2026, revised from ₹1,457 to ₹1,998 (+37.1%) since Jul 30, 2026. Share price +7.5% over the past month.

A strong business, screening 70% undervalued on our models.

What matters now

  • The rarer combination: high quality (83/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • A fairly wide model range (₹1,189 to ₹2,490) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹1,901 ₹986.00 Fair Value ₹1,998 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹986.00 – ₹1,901 · fair‑value band ₹1,189 – ₹2,490 · the ₹1,175 price screens below the ₹1,998 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Infosys Limited (INFY) currently trades at ₹1,175, while our model-based Fair Value estimate is ₹1,998, implying the stock looks roughly 70.0% undervalued today. The Quality Score stands at 83/100 (high quality), in the Technology sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Infosys Limited generated revenue of ₹20.2B at a net margin of 16.4%. Revenue grew 6.6% year over year. It earns a return on equity of 31.4%. The balance sheet holds a net cash position of ₹1.4B. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹1,189 (bear case) to ₹2,490 (bull case); at ₹1,175, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 32% below its 52-week high and 8% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -6% fair-value upside, at 70%, INFY screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹365.81 ₹451.76 ₹2,202 76
Growth DCF ₹884.96 ₹1,535 ₹2,689 72
Gordon GGM ₹348.62 ₹760.50 ₹1,280 70
All 26 models by family
DCF Models
FCF DCF ₹884.27 ₹1,569 ₹2,790 38
Owner Earnings ₹845.08 ₹1,498 ₹2,661 31
5Y Revenue Exit ₹730.93 ₹1,218 ₹1,868 39
5Y EBITDA Exit ₹975.72 ₹1,714 ₹2,631 41
5Y P/E Exit ₹1,051 ₹1,865 ₹2,788 38
10Y Revenue Exit ₹752.94 ₹1,236 ₹1,954 36
10Y EBITDA Exit ₹939.97 ₹1,604 ₹2,598 37
10Y P/E Exit ₹990.16 ₹1,717 ₹2,731 35
Earnings-Based
Graham-Dodd ₹382.31 ₹1,674 ₹2,290 54
Lynch FV ₹431.82 ₹616.79 ₹801.76 50
PEG = 1.0 ₹431.82 ₹616.79 ₹801.76 46
EPV ₹531.52 ₹618.16 ₹695.18 59
Dividend Discount
Gordon GGM ₹348.62 ₹760.50 ₹1,280 70
DDM Multi-Stage ₹348.62 ₹622.98 ₹792.82 61
Multiples
P/E Multiple ₹1,181 ₹1,575 ₹1,969 63
P/S Multiple ₹717.18 ₹956.47 ₹1,196 58
P/B Multiple ₹717.18 ₹956.47 ₹1,196 55
EV/EBIT ₹1,289 ₹1,705 ₹2,121 53
EV/EBITDA ₹1,103 ₹1,457 ₹1,812 54
EV/Revenue ₹671.11 ₹941.34 ₹1,212 43
Asset-Based
NCAV (Graham) ₹83.20 ₹111.39 ₹166.40 50
Growth DCF
Growth DCF ₹884.96 ₹1,535 ₹2,689 72
Rev-Margin DCF ₹730.93 ₹1,209 ₹1,816 67
Economic Profit
Residual Income ₹365.81 ₹451.76 ₹2,202 76
ROIC Compounder ₹583.10 ₹746.06 ₹944.09 67
Growth Earnings
Growth-Adj P/E ₹848.51 ₹1,212 ₹1,576 68

Widest divergence: DCF Models (₹1,569) versus Asset-Based (₹111.39). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹20.2B
Revenue growth (YoY) +6.6%
Net margin 16.4%
Return on equity 31.4%
Free cash flow ₹3.7B FY2026
P/E ratio 15.3
More key figures
Operating margin 20.9%
EPS (TTM) ₹76.68
Dividend yield 0.1%
EPS growth (YoY) +11.8%
Net cash ₹1.4B FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 83/100

Of which business quality 81 · Market factors (momentum, volatility) 42

Profitability 86
Margins and returns on capital today
Quality Growth 65
Are margins and returns improving?
Cashflow 73
Earnings quality: real cash, not paper profit
Fin. Strength 88
Balance sheet, leverage, solvency risk
Investment 92
Disciplined investing over empire-building
Low Volatility 84
Calm price path (market factor)
Momentum 26
Price trend over the last 3–12 months (market factor)
52W Momentum 21
Distance to the 52-week high (market factor)
Net Issuance 85
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Infosys Limited provides consulting, technology, outsourcing, and digital services worldwide. It provides digital marketing and digital workplace, digital commerce, digital experience and interactions, and metaverse; data analytics and AI, applied AI, generative AI, and sustainability; blockchain, engineering, and Internet of Things; enterprise agile …

Full company description

Infosys Limited provides consulting, technology, outsourcing, and digital services worldwide. It provides digital marketing and digital workplace, digital commerce, digital experience and interactions, and metaverse; data analytics and AI, applied AI, generative AI, and sustainability; blockchain, engineering, and Internet of Things; enterprise agile DevOps, API economy and microservices, application modernization, cloud, digital process automation, digital supply chain, Microsoft business application and cloud business, service experience transformation, energy transition, Network Transformation Services, Infrastructure Services cyber security, and quality engineering solutions; Oracle, SAP, and Saleforce solutions; Topaz, an AI-first set of services, solutions, and platforms using generative AI technologies; and Aster, a set of AI-amplified marketing services, solutions, and platforms. The company also offers Finacle, a core banking solution; Edge suite of products; Panaya platform, Infosys Equinox, Infosys Live Enterprise Suite, Infosys Wingspan, Infosys Helix, Infosys Meridian, Infosys Polycloud, Infosys Cortex, and Stater digital platforms; and Infosys McCamish, an insurance platform. It serves aerospace and defense, agriculture, automotive, chemical manufacturing, communication, consumer packaged goods, education, engineering procurement and construction, financial, healthcare, high technology, industrial manufacturing, information services and publishing, insurance, life science, logistics and distribution, media, entertainment, mining, oil and gas, private equity, professional, public, retail, semiconductor, travel, hospitality, utilities, and waste management industries. It has a strategic collaboration with Anthropic PBC, Intel, and Harness Inc. The company was formerly known as Infosys Technologies Limited and changed its name to Infosys Limited in June 2011. Infosys Limited was incorporated in 1981 and is headquartered in Bengaluru, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Infosys Limited reported revenue of ₹20.2B in FY2026 versus ₹16.3B in FY2022, a compound +5.4%/yr. Reported net income was ₹3.3B in FY2026, compounding +2.8%/yr from FY2022.

Growth Quality 87/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹20.2B
Latest YoY
+4.6%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.4%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.3%
Avg. growth/yr (27Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+20.9%
Revenue +5.4%/yr
FY22 ₹16.3B
FY23 ₹18.2B
FY24 ₹18.6B
FY25 ₹19.3B
FY26 ₹20.2B
Net income +2.8%/yr
FY22 ₹3.0B
FY23 ₹3.0B
FY24 ₹3.2B
FY25 ₹3.2B
FY26 ₹3.3B
Character of growth · EPS growth decomposed (2015-2026) +6.2 % p.a.
Revenue per share +9.4 pp

of which total revenue +8.2 pp · buybacks/dilution +1.2 pp

EBIT margin −2.2 pp
Tax rate +0.1 pp
Residual (interest, one-offs) −1.2 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Infosys Limited Fair Value". https://www.fairvalue-calculator.com/stock/INFY

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Information Technology Services · 488 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 83 · Top 25%
Fair Value upside +70% · Top 25%
Return on equity (TTM) 31% · Top 25%
Return on assets 15% · Top 25%
Net margin (TTM) 16% · Top 25%
Operating margin (TTM) 21% · Top 25%
Revenue growth 7% · Above median
Dividend yield (TTM) 0.1% · Bottom 25%

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/E (TTM) 15.3× · Cheaper than median
P/B 4.64× · Pricier than 75% of peers
P/S (TTM) 2.25× · Pricier than 75% of peers
P/FCF 12.2× · Pricier than 75% of peers
EV/EBITDA 9.7× · Cheaper than median
PEG 1.96× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 33
FUTURE 33 · sector 31
PAST 100 · sector 35
HEALTH 0 · sector 97
DIVIDEND 1 · sector 36

Insider activity: 28/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
International Business Machines Corporation IBM $235.98 $175.76 -26%
Accenture plc ACNN 2,460 MXN 300.07 MXN -88%
Tata Consultancy Services Limited TCS ₹2,350 ₹3,473 +48%
HCL Technologies Limited HCLTECH ₹1,365 ₹1,722 +26%
Wipro Limited WIPRO ₹183.94 ₹314.26 +71%
Tech Mahindra Limited TECHM ₹1,625 ₹1,521 -6%
Samsung SDS Co 018260 235,500 KRW 235,321 KRW -0%
Persistent Systems Limited PERSISTENT ₹5,474 ₹3,259 -40%
Hyundai Autoever Corporation 307950 433,000 KRW 186,323 KRW -57%
Coforge Limited COFORGE ₹1,829 ₹983.97 -46%

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Frequently asked questions

Is Infosys Limited (INFY) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹1,998 versus a price of ₹1,175, about +70% (undervalued).
What is the fair value of INFY?
Our model-based fair value for Infosys Limited is ₹1,998 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹1,175.
What is the quality score of INFY?
Infosys Limited has a Quality Score of 83/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Infosys Limited (INFY)?
Infosys Limited reported trailing-twelve-month revenue of about ₹20.2B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of INFY?
The net profit margin of Infosys Limited is about 16.4%, meaning it keeps roughly 16.4% of revenue as net income. Based on the latest reported figures.
Does Infosys Limited pay a dividend?
Infosys Limited currently shows a dividend yield of about 0.04% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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