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Infosys (HAM:IOY) Cyclically Adjusted PB Ratio : 8.26 (As of Jun. 20, 2024)


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What is Infosys Cyclically Adjusted PB Ratio?

As of today (2024-06-20), Infosys's current share price is €16.60. Infosys's Cyclically Adjusted Book per Share for the quarter that ended in Dec. 2023 was €2.01. Infosys's Cyclically Adjusted PB Ratio for today is 8.26.

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

HAM:IOY' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 4.13   Med: 6.78   Max: 11.58
Current: 7.86

During the past years, Infosys's highest Cyclically Adjusted PB Ratio was 11.58. The lowest was 4.13. And the median was 6.78.

HAM:IOY's Cyclically Adjusted PB Ratio is ranked worse than
85.4% of 1425 companies
in the Software industry
Industry Median: 2.52 vs HAM:IOY: 7.86

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 €2.131. 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 €2.01 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 8.81 11.31 7.83 -

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 7.83 7.13 7.57 8.02 -

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
=16.60/2.01
=8.26

* 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)
=2.131/152.9243*152.9243
=2.131

Current CPI (Dec. 2023) = 152.9243.

Infosys Quarterly Data

Book Value per Share CPI Adj_Book
201403 1.255 91.425 2.099
201406 1.272 94.103 2.067
201409 1.391 96.780 2.198
201412 1.457 96.780 2.302
201503 1.771 97.163 2.787
201506 1.649 99.841 2.526
201509 1.704 101.753 2.561
201512 1.763 102.901 2.620
201603 1.832 102.518 2.733
201606 1.767 105.961 2.550
201609 1.896 105.961 2.736
201612 2.000 105.196 2.907
201703 2.176 105.196 3.163
201706 2.065 107.109 2.948
201709 2.034 109.021 2.853
201712 1.856 109.404 2.594
201803 1.858 109.786 2.588
201806 1.745 111.317 2.397
201809 1.772 115.142 2.353
201812 1.883 115.142 2.501
201903 1.917 118.202 2.480
201906 1.695 120.880 2.144
201909 1.828 123.175 2.269
201912 1.809 126.235 2.191
202003 1.845 124.705 2.263
202006 1.831 127.000 2.205
202009 1.926 130.118 2.264
202012 1.898 130.889 2.218
202103 2.066 131.771 2.398
202106 1.892 134.084 2.158
202109 1.904 135.847 2.143
202112 1.964 138.161 2.174
202203 2.153 138.822 2.372
202206 2.106 142.347 2.262
202209 2.366 144.661 2.501
202212 2.032 145.763 2.132
202303 2.071 146.865 2.156
202306 2.023 150.280 2.059
202309 2.201 151.492 2.222
202312 2.131 152.924 2.131

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  (HAM:IOY) 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 (HAM:IOY) 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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