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Infosys (NSE:INFY) Shiller PE Ratio : 28.38 (As of Apr. 29, 2024)


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What is Infosys Shiller PE Ratio?

As of today (2024-04-29), Infosys's current share price is ₹1434.75. Infosys's E10 for the quarter that ended in Dec. 2023 was ₹50.56. Infosys's Shiller PE Ratio for today is 28.38.

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: 16.53   Med: 24.24   Max: 46.42
Current: 28.29

During the past years, Infosys's highest Shiller PE Ratio was 46.42. The lowest was 16.53. And the median was 24.24.

NSE:INFY's Shiller PE Ratio is ranked better than
54.55% of 902 companies
in the Software industry
Industry Median: 31.045 vs NSE:INFY: 28.29

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 ₹15.026. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is ₹50.56 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 18.58 35.74 45.08 30.40 -

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 30.40 27.52 28.97 30.52 -

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
=1434.75/50.56
=28.38

* 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)
=15.026/153.2548*153.2548
=15.026

Current CPI (Dec. 2023) = 153.2548.

Infosys Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201403 6.358 91.425 10.658
201406 6.306 94.103 10.270
201409 6.773 96.780 10.725
201412 7.292 96.780 11.547
201503 6.879 97.163 10.850
201506 6.692 99.841 10.272
201509 7.581 101.753 11.418
201512 7.646 102.901 11.388
201603 7.636 102.518 11.415
201606 7.417 105.961 10.727
201609 8.021 105.961 11.601
201612 8.158 105.196 11.885
201703 6.687 105.196 9.742
201706 7.777 107.109 11.128
201709 8.497 109.021 11.944
201712 10.856 109.404 15.207
201803 8.464 109.786 11.815
201806 8.259 111.317 11.371
201809 9.428 115.142 12.549
201812 8.393 115.142 11.171
201903 9.028 118.202 11.705
201906 9.015 120.880 11.429
201909 9.167 123.175 11.406
201912 10.734 126.235 13.032
202003 10.559 124.705 12.976
202006 9.847 127.000 11.883
202009 11.114 130.118 13.090
202012 12.487 130.889 14.621
202103 11.751 131.771 13.667
202106 12.629 134.084 14.435
202109 12.635 135.847 14.254
202112 13.398 138.161 14.862
202203 13.649 138.822 15.068
202206 12.624 142.347 13.591
202209 14.667 144.661 15.538
202212 15.725 145.763 16.533
202303 14.778 146.865 15.421
202306 13.953 150.280 14.229
202309 14.977 151.492 15.151
202312 15.026 153.255 15.026

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).