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Infosys (BOM:500209) Cyclically Adjusted PB Ratio : 7.36 (As of May. 01, 2024)


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What is Infosys Cyclically Adjusted PB Ratio?

As of today (2024-05-01), Infosys's current share price is ₹1421.10. Infosys's Cyclically Adjusted Book per Share for the quarter that ended in Dec. 2023 was ₹192.98. Infosys's Cyclically Adjusted PB Ratio for today is 7.36.

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

BOM:500209' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 4.14   Med: 6.75   Max: 11.58
Current: 7.43

During the past years, Infosys's highest Cyclically Adjusted PB Ratio was 11.58. The lowest was 4.14. And the median was 6.75.

BOM:500209's Cyclically Adjusted PB Ratio is ranked worse than
83.91% of 1311 companies
in the Software industry
Industry Median: 2.54 vs BOM:500209: 7.43

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Infosys's adjusted book value per share data for the three months ended in Dec. 2023 was ₹193.957. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is ₹192.98 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Infosys Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Infosys's Cyclically Adjusted PB 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 Cyclically Adjusted PB Ratio Chart

Infosys Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.55 8.80 11.31 7.82 -

Infosys Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PB 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 7.82 7.12 7.55 7.99 -

Competitive Comparison of Infosys's Cyclically Adjusted PB Ratio

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

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

* The bar in red indicates where Infosys's Cyclically Adjusted PB Ratio falls into.



Infosys Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Infosys's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=1421.10/192.98
=7.36

* 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 Cyclically Adjusted Book per Share for the quarter that ended in Dec. 2023 is calculated as:

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

Adj_Book=Book Value per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=193.957/153.2548*153.2548
=193.957

Current CPI (Dec. 2023) = 153.2548.

Infosys Quarterly Data

Book Value per Share CPI Adj_Book
201403 103.855 91.425 174.091
201406 103.796 94.103 169.041
201409 110.350 96.780 174.743
201412 113.958 96.780 180.456
201503 119.873 97.163 189.075
201506 117.983 99.841 181.103
201509 126.078 101.753 189.891
201512 127.663 102.901 190.134
201603 135.439 102.518 202.468
201606 133.880 105.961 193.635
201609 142.279 105.961 205.782
201612 143.418 105.196 208.939
201703 150.902 105.196 219.842
201706 150.405 107.109 215.205
201709 158.447 109.021 222.734
201712 140.223 109.404 196.427
201803 149.182 109.786 208.249
201806 140.317 111.317 193.181
201809 149.932 115.142 199.561
201812 149.801 115.142 199.386
201903 150.416 118.202 195.022
201906 132.829 120.880 168.404
201909 141.999 123.175 176.676
201912 143.865 126.235 174.658
202003 153.766 124.705 188.969
202006 156.210 127.000 188.503
202009 168.053 130.118 197.935
202012 169.635 130.889 198.621
202103 180.658 131.771 210.113
202106 169.321 134.084 193.530
202109 166.478 135.847 187.811
202112 165.212 138.161 183.261
202203 179.778 138.822 198.469
202206 175.632 142.347 189.090
202209 190.897 144.661 202.237
202212 178.109 145.763 187.263
202303 182.050 146.865 189.971
202306 179.861 150.280 183.421
202309 195.413 151.492 197.687
202312 193.957 153.255 193.957

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

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  (BOM:500209) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Infosys Cyclically Adjusted PB Ratio Related Terms

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


Infosys (BOM:500209) Business Description

Industry
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).

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