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Infosys (Infosys) PEG Ratio : 1.61 (As of Apr. 25, 2024)


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What is Infosys PEG Ratio?

PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Infosys's PE Ratio without NRI is 22.32. Infosys's 5-Year EBITDA growth rate is 13.90%. Therefore, Infosys's PEG Ratio for today is 1.61.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


The historical rank and industry rank for Infosys's PEG Ratio or its related term are showing as below:

INFY' s PEG Ratio Range Over the Past 10 Years
Min: 0.89   Med: 1.52   Max: 2.64
Current: 1.73


During the past 13 years, Infosys's highest PEG Ratio was 2.64. The lowest was 0.89. And the median was 1.52.


INFY's PEG Ratio is ranked worse than
54.27% of 772 companies
in the Software industry
Industry Median: 1.59 vs INFY: 1.73

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.


Infosys PEG Ratio Historical Data

The historical data trend for Infosys's PEG Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Infosys PEG Ratio Chart

Infosys Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
PEG Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.26 2.18 2.46 2.02 -

Infosys Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
PEG Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.02 1.84 1.96 2.14 -

Competitive Comparison of Infosys's PEG Ratio

For the Information Technology Services subindustry, Infosys's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Infosys's PEG Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Infosys's PEG Ratio distribution charts can be found below:

* The bar in red indicates where Infosys's PEG Ratio falls into.



Infosys PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Infosys's PEG Ratio for today is calculated as

PEG Ratio=PE Ratio without NRI/5-Year EBITDA Growth Rate*
=22.320261437908/13.90
=1.61

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


Infosys  (NYSE:INFY) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Infosys PEG Ratio Related Terms

Thank you for viewing the detailed overview of Infosys's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Infosys (Infosys) Business Description

Address
44, Infosys Avenue, Hosur Road, Electronics City, Bengaluru, KA, IND, 560 100
Infosys is a leading global IT services provider, with nearly 250,000 employees. Based in Bangalore, the Indian IT services firm leverages its offshore outsourcing model to derive 60% of its revenue from North America. The company offers traditional IT services offerings: consulting, managed services and cloud infrastructure services, and business process outsourcing as a service (BPaaS).