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Infosys (LTS:0XSE) Cyclically Adjusted PB Ratio : 7.35 (As of May. 15, 2024)


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What is Infosys Cyclically Adjusted PB Ratio?

As of today (2024-05-15), Infosys's current share price is $16.91. Infosys's Cyclically Adjusted Book per Share for the quarter that ended in Dec. 2023 was $2.30. Infosys's Cyclically Adjusted PB Ratio for today is 7.35.

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

LTS:0XSE' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 4.13   Med: 6.75   Max: 11.58
Current: 7.39

During the past years, Infosys's highest Cyclically Adjusted PB Ratio was 11.58. The lowest was 4.13. And the median was 6.75.

LTS:0XSE's Cyclically Adjusted PB Ratio is ranked worse than
83.82% of 1335 companies
in the Software industry
Industry Median: 2.6 vs LTS:0XSE: 7.39

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 $2.323. 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 $2.30 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 8.01 -

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
=16.91/2.3
=7.35

* 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)
=2.323/153.2548*153.2548
=2.323

Current CPI (Dec. 2023) = 153.2548.

Infosys Quarterly Data

Book Value per Share CPI Adj_Book
201403 1.735 91.425 2.908
201406 1.728 94.103 2.814
201409 1.792 96.780 2.838
201412 1.797 96.780 2.846
201503 1.917 97.163 3.024
201506 1.851 99.841 2.841
201509 1.913 101.753 2.881
201512 1.920 102.901 2.860
201603 2.040 102.518 3.050
201606 1.985 105.961 2.871
201609 2.128 105.961 3.078
201612 2.110 105.196 3.074
201703 2.327 105.196 3.390
201706 2.321 107.109 3.321
201709 2.424 109.021 3.407
201712 2.196 109.404 3.076
201803 2.291 109.786 3.198
201806 2.039 111.317 2.807
201809 2.067 115.142 2.751
201812 2.142 115.142 2.851
201903 2.166 118.202 2.808
201906 1.916 120.880 2.429
201909 2.014 123.175 2.506
201912 2.010 126.235 2.440
202003 2.039 124.705 2.506
202006 2.062 127.000 2.488
202009 2.268 130.118 2.671
202012 2.310 130.889 2.705
202103 2.460 131.771 2.861
202106 2.279 134.084 2.605
202109 2.240 135.847 2.527
202112 2.220 138.161 2.463
202203 2.371 138.822 2.618
202206 2.226 142.347 2.397
202209 2.343 144.661 2.482
202212 2.152 145.763 2.263
202303 2.217 146.865 2.313
202306 2.191 150.280 2.234
202309 2.348 151.492 2.375
202312 2.323 153.255 2.323

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  (LTS:0XSE) 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 (LTS:0XSE) 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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