Check Buy or Sell

Is Infosys Ltd. in the Buy Zone or Sell Zone? See how many days this stock has traded above or below historically at its current PE (Price to Earnings) or P/BV (Price to Book Value). This is a reverse percentile score. Values close to 100% are bad while values close to 0% are good.

Note: Current PE of a stock may be impacted downward by adverse events. Investors should check for red flags before buying.

Analyze undervaluation/ overvaluation of Infosys with current and 1 Year Forward PE

INSIGHT
Infosys is undervalued at both current PE and future earnings estimates.
Right Now : Current PE vs 5 year Average PE
Undervalued
Fair price

Based on 5Yr Average PE

1850.6
Upside

Current PE versus 5Yr Average PE

56.4 %
1 Year Forward : 5 Yr Average PE & Projected 1Yr Forward EPS*
Undervalued
Fair price

Based on 1Yr Forward EPS

1895.8
Upside

5 Yr Average PE & 1Yr Forward EPS

60.3 %
Info: The Infosys's current PE is 15.85 ,while its 5 year PE average is 24.8. Its forward PE based on analyst estimates is 15.5
Note: The forward PE ratio (or forward price-to-earnings ratio) is calculated by dividing the current share price of a company by the estimated(1Yr) future (“forward”) earnings per share (EPS) of that company.

Analyze undervaluation/ overvaluation of Infosys Ltd. with historical PE and PBV ratios

from 11 Aug, 2024 to 10 Aug, 2026

Standalone PE

Strong Buy Zone

8.5% into PE buy sell zone

% time spent below current PE
0 20 40 60 80 100
Strong upside potential
Gains already realized

Out of 494 days, Infosys Ltd. traded 42 (8.5%) days below the current PE of on Standalone basis.

Consolidated PE

Strong Buy Zone

9.5% into PE buy sell zone

% time spent below current PE
0 20 40 60 80 100
Strong upside potential
Gains already realized

Out of 494 days, Infosys Ltd. traded 47 (9.5%) days below the current PE of on Consolidated basis.

Note: This is a reverse percentile score. Values close to 100% are bad while values close to 0% are good. Days when PE is negative are not considered in the analysis
9.5%

Strong Buy Zone

% Days traded below current PE

15.9
 

Current PE

23.4
 

Average PE

23.6
 

Median PE

1895.8
 

Forward 1Y Price

15.5
 

Forward PE

76.5
 

Forward EPS

PE range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
13-15
 24 4.9% 24 4.9%
15-16
Current PE is 15.9 Forward PE is 15.47
28 5.7% 52 10.5%
16-19
 52 10.5% 104 21.1%
19-23
 108 21.9% 212 42.9%
23-24
 63 12.8% 275 55.7%
24-25
 57 11.5% 332 67.2%
25-29
 88 17.8% 420 85.0%
29-31
 74 15.0% 494 100.0%
Total 494 494
8.5%

Strong Buy Zone

% Days traded below current PE

15.8
 

Current PE

23.8
 

Average PE

24.5
 

Median PE

1895.8
 

Forward 1Y Price

15.5
 

Forward PE

76.5
 

Forward EPS

PE range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
13-16
Current PE is 15.8 Forward PE is 15.47
47 9.5% 47 9.5%
16-17
 25 5.1% 72 14.6%
17-20
 39 7.9% 111 22.5%
20-24
 92 18.6% 203 41.1%
24-25
 77 15.6% 280 56.7%
25-26
 51 10.3% 331 67.0%
26-29
 107 21.7% 438 88.7%
29-31
 56 11.3% 494 100.0%
Total 494 494

FAQ

  • What is the PE ratio?
    The Price to Earnings ratio (PE ratio) for a stock tells us how expensive or cheap a company’s share price is relative to its earnings.
    In its most simple definition, the price to earnings ratio is the price an investor needs to pay (invest) to receive Rs. 1 of the company’s earnings.
    So if a company is trading at a PE of 25, it means that investors are willing to pay Rs. 25 in price for Rs. 1 for current earnings. This means that investors are valuing the stock at 25x its current earnings, and they expect earnings to grow in the future.
    The Price to Earnings ratio changes depending on how bullish or bearish investors and analysts are about a company. A strongly positive sentiment about a stock pushes the stock price up, and therefore the PE moves higher (investors have to pay more money for an equivalent Rs. 1 of earnings) while a bearish sentiment pushes PE lower (investors have to pay less for an equivalent Rs 1 of earnings).
  • What is the PE buy/sell zone?
    The PE buy/sell zone is calculated based on how many days a stock has traded at its current PE level.
    To do this, we compare the current PE to the stock’s historical PE performance, to find out how often (for how many days in the past) the stock has traded at its current PE value.
    If the stock has usually traded above its current PE level (it’s at a higher PE for the majority of trading days), then the stock is cheaper than usual and in the PE buy zone.
    If the stock has usually traded below its current PE level (it’s at a lower PE for the majority of trading days), then the stock is more expensive than usual and in the PE sell zone.
  • How is the PE buy sell zone useful?
    The PE buy sell zone tells you if a stock’s current PE level is unusually high or low, and if a stock doesn’t typically trade at that level. It helps investors identify stocks that are undervalued or overvalued in terms of their typical PE trading behavior.
    Investors should keep in mind that the buy zone/sell zone is not a foolproof buy or sell signal. For example, the PE of a stock may have fallen substantially due to adverse events or negative news. Or the PE may have risen sharply after the company has won new orders, made an acquisition, announced a buyback, or some other positive event. PE Buy/Sell Zone signals should be looked at in conjunction with other information.
  • Why are the number of days different for Standalone and Consolidated data?
    This can be because of any of the 2 following reasons:
    1. Days when PE is negative are not considered in the analysis. So if only 1 of the Standalone or Consolidated PE is negative and the other is not, then the days will be different
    2. Companies have reported Consolidated data for limited period.
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