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Infosys (NSE:INFY) Shiller PE Ratio : 27.97 (As of May. 05, 2024)


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What is Infosys Shiller PE Ratio?

As of today (2024-05-05), Infosys's current share price is ₹1416.30. Infosys's E10 for the quarter that ended in Dec. 2023 was ₹50.64. Infosys's Shiller PE Ratio for today is 27.97.

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

NSE:INFY' s Shiller PE Ratio Range Over the Past 10 Years
Min: 16.43   Med: 24.1   Max: 46.18
Current: 27.97

During the past years, Infosys's highest Shiller PE Ratio was 46.18. The lowest was 16.43. And the median was 24.10.

NSE:INFY's Shiller PE Ratio is ranked better than
54.79% of 909 companies
in the Software industry
Industry Median: 31.22 vs NSE:INFY: 27.97

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Infosys's adjusted earnings per share data for the three months ended in Dec. 2023 was ₹14.986. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is ₹50.64 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Infosys Shiller PE Ratio Historical Data

The historical data trend for Infosys's Shiller PE 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 Shiller PE Ratio Chart

Infosys Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.45 35.57 44.94 30.36 -

Infosys Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Shiller PE 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 30.36 27.47 28.93 30.47 -

Competitive Comparison of Infosys's Shiller PE Ratio

For the Information Technology Services subindustry, Infosys's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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 Shiller PE Ratio Distribution in the Software Industry

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

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



Infosys Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Infosys's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=1416.30/50.64
=27.97

* 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.

Infosys's E10 for the quarter that ended in Dec. 2023 is calculated as:

For example, Infosys's adjusted earnings per share data for the three months ended in Dec. 2023 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=14.986/153.2548*153.2548
=14.986

Current CPI (Dec. 2023) = 153.2548.

Infosys Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201403 6.476 91.425 10.856
201406 6.272 94.103 10.215
201409 6.699 96.780 10.608
201412 7.211 96.780 11.419
201503 6.873 97.163 10.841
201506 6.697 99.841 10.280
201509 7.609 101.753 11.460
201512 7.648 102.901 11.391
201603 7.692 102.518 11.499
201606 7.399 105.961 10.701
201609 8.006 105.961 11.579
201612 8.137 105.196 11.854
201703 7.896 105.196 11.503
201706 7.734 107.109 11.066
201709 8.382 109.021 11.783
201712 10.922 109.404 15.300
201803 8.456 109.786 11.804
201806 8.135 111.317 11.200
201809 9.396 115.142 12.506
201812 8.500 115.142 11.314
201903 9.034 118.202 11.713
201906 9.020 120.880 11.436
201909 9.270 123.175 11.534
201912 10.674 126.235 12.959
202003 10.437 124.705 12.826
202006 9.842 127.000 11.877
202009 11.028 130.118 12.989
202012 12.515 130.889 14.654
202103 11.651 131.771 13.551
202106 12.508 134.084 14.296
202109 12.518 135.847 14.122
202112 13.571 138.161 15.054
202203 13.714 138.822 15.140
202206 12.494 142.347 13.451
202209 14.446 144.661 15.304
202212 15.670 145.763 16.475
202303 14.808 146.865 15.452
202306 13.978 150.280 14.255
202309 14.953 151.492 15.127
202312 14.986 153.255 14.986

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Infosys  (NSE:INFY) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Infosys Shiller PE Ratio Related Terms

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


Infosys (NSE:INFY) 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).