Latest Ratios: P/E Ratio 13.0x · EV/EBITDA 9.1x · ROE 31.4%. (1999–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $43.7B | $54.0B | $75.8B | $74.3B | $73.0B | $105.0B | $79.6B | $35.0B | $47.6B | $40.3B | $36.1B |
| Enterprise Value | $42.3B | $52.6B | $73.9B | $73.5B | $72.6B | $103.4B | $76.9B | $33.2B | $44.8B | $37.3B | $32.6B |
| P/E Ratio → | 12.96 | 16.28 | 24.01 | 23.59 | 24.56 | 35.56 | 30.69 | 14.93 | 21.43 | 16.24 | 16.81 |
| P/S Ratio | 2.17 | 2.68 | 3.93 | 4.00 | 4.01 | 6.44 | 5.87 | 2.74 | 4.03 | 3.69 | 3.54 |
| P/B Ratio | 4.37 | 5.49 | 6.73 | 7.01 | 7.92 | 10.51 | 7.58 | 4.02 | 5.06 | 4.05 | 3.40 |
| P/FCF | 11.70 | 14.46 | 18.54 | 25.79 | 28.82 | 34.37 | 26.77 | 16.32 | 24.87 | 20.71 | 21.40 |
| P/OCF | 10.81 | 13.37 | 17.42 | 23.61 | 25.60 | 31.39 | 24.42 | 13.41 | 21.04 | 17.86 | 17.21 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.61 | 3.83 | 3.96 | 3.98 | 6.34 | 5.67 | 2.59 | 3.79 | 3.41 | 3.20 |
| EV / EBITDA | 9.12 | 11.35 | 15.92 | 16.72 | 16.68 | 24.50 | 20.43 | 10.59 | 15.00 | 12.65 | 11.77 |
| EV / EBIT | 10.35 | 11.55 | 16.43 | 16.71 | 17.35 | 25.45 | 21.29 | 12.17 | 14.90 | 14.02 | 12.95 |
| EV / FCF | — | 14.09 | 18.07 | 25.52 | 28.64 | 33.85 | 25.87 | 15.45 | 23.39 | 19.15 | 19.33 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 30.2% | 30.2% | 30.5% | 30.1% | 30.2% | 32.6% | 34.9% | 33.1% | 34.9% | 36.0% | 36.9% |
| Operating Margin | 20.3% | 20.3% | 21.1% | 20.7% | 21.0% | 23.0% | 24.5% | 21.3% | 22.8% | 24.3% | 24.7% |
| Net Profit Margin | 16.4% | 16.4% | 16.4% | 17.1% | 16.4% | 18.2% | 19.3% | 18.2% | 18.6% | 22.7% | 21.0% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 31.4% | 31.4% | 28.9% | 32.0% | 31.0% | 28.9% | 27.2% | 25.8% | 22.7% | 24.1% | 21.4% |
| ROA | 19.6% | 19.6% | 18.6% | 19.9% | 19.3% | 19.5% | 19.3% | 19.0% | 17.9% | 19.8% | 17.7% |
| ROIC | 34.4% | 34.4% | 31.8% | 30.9% | 33.4% | 34.6% | 33.9% | 30.4% | 30.0% | 28.4% | 32.8% |
| ROCE | 35.0% | 35.0% | 33.5% | 34.2% | 35.3% | 33.1% | 31.6% | 28.6% | 27.4% | 25.6% | 25.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.10 | 0.10 | 0.09 | 0.09 | 0.11 | 0.07 | 0.07 | 0.07 | — | — | — |
| Debt / EBITDA | 0.21 | 0.21 | 0.21 | 0.23 | 0.23 | 0.17 | 0.19 | 0.20 | — | — | — |
| Net Debt / Equity | — | -0.14 | -0.17 | -0.07 | -0.05 | -0.16 | -0.25 | -0.21 | -0.30 | -0.31 | -0.33 |
| Net Debt / EBITDA | -0.30 | -0.30 | -0.41 | -0.18 | -0.11 | -0.37 | -0.70 | -0.59 | -0.95 | -1.03 | -1.26 |
| Debt / FCF | — | -0.37 | -0.46 | -0.27 | -0.19 | -0.52 | -0.89 | -0.86 | -1.48 | -1.56 | -2.07 |
| Interest Coverage | 96.87 | 96.87 | 91.40 | 78.61 | 119.47 | 150.48 | 137.55 | 113.50 | — | — | — |
Net cash position: cash ($2.3B) exceeds total debt ($967M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.98 | 1.98 | 2.27 | 2.31 | 1.81 | 2.00 | 2.55 | 2.62 | 2.84 | 3.55 | 3.83 |
| Quick Ratio | 1.98 | 1.98 | 2.27 | 2.31 | 1.81 | 2.00 | 2.55 | 2.62 | 2.84 | 3.55 | 3.83 |
| Cash Ratio | 0.68 | 0.68 | 0.90 | 0.72 | 0.49 | 0.73 | 1.15 | 1.12 | 1.41 | 1.86 | 2.33 |
| Asset Turnover | — | 1.23 | 1.11 | 1.12 | 1.19 | 1.05 | 0.91 | 1.04 | 0.96 | 0.89 | 0.79 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 112.15 | 112.77 | 128.23 | 109.19 | 108.87 | 109.33 | 96.65 | 90.36 | 89.09 | 88.03 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 5.0% | 4.0% | 3.2% | 2.4% | 2.3% | 1.6% | 1.5% | 3.9% | 4.1% | 2.9% | 2.9% |
| Payout Ratio | 64.4% | 64.4% | 76.5% | 56.1% | 56.9% | 57.5% | 46.9% | 58.3% | 88.9% | 46.5% | 48.2% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.7% | 6.1% | 4.2% | 4.2% | 4.1% | 2.8% | 3.3% | 6.7% | 4.7% | 6.2% | 5.9% |
| FCF Yield | 8.6% | 6.9% | 5.4% | 3.9% | 3.5% | 2.9% | 3.7% | 6.1% | 4.0% | 4.8% | 4.7% |
| Buyback Yield | 4.6% | 3.7% | 0.0% | 0.0% | 1.9% | 1.4% | 0.0% | 3.1% | 0.2% | 5.1% | 0.0% |
| Total Shareholder Yield | 9.6% | 7.7% | 3.2% | 2.4% | 4.2% | 3.1% | 1.5% | 6.9% | 4.4% | 7.9% | 2.9% |
| Shares Outstanding | — | $4.0B | $4.2B | $4.1B | $4.2B | $4.2B | $4.3B | $4.3B | $4.4B | $4.5B | $4.6B |
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying INFY stock.
Infosys Limited's current P/E ratio is 13.0x. The historical average is 32.5x. This places it at the 4th percentile of its historical range.
Infosys Limited's current EV/EBITDA is 9.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 21.5x.
Infosys Limited's return on equity (ROE) is 31.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 30.1%.
Based on historical data, Infosys Limited is trading at a P/E of 13.0x. This is at the 4th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Infosys Limited's current dividend yield is 4.96% with a payout ratio of 64.4%.
Infosys Limited has 30.2% gross margin and 20.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Infosys Limited's Debt/EBITDA ratio is 0.2x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
AI-driven margin compression risk
Margin Resilience Amidst AI Transition
Gross margin expanded to 31.5% in 2027Q1 from 29.5% a year earlier, while operating margin held near 21%, according to recent quarterly data. This suggests cost discipline is offsetting AI-related investments.
The 200 basis point gross margin improvement over the past year appears driven by better utilization and offshore mix, though wage inflation remains a watch item. Operating margin stability at ~21% indicates that SG&A discipline is absorbing reinvestment in Topaz and other AI initiatives. However, the sustainability of these margins hinges on the company's ability to pass on productivity gains to clients without pricing concessions, a risk that warrants monitoring.
ROIC Stability Masks Underlying Efficiency
ROIC has hovered between 7.3% and 9.6% over the last ten quarters, with the latest at 9.6%, as per reported figures. This stability suggests consistent capital efficiency, though asset turnover remains low at 0.31.
The modest ROIC range indicates that Infosys is not experiencing significant decay or improvement in capital productivity. The low asset turnover reflects the asset-light model, but ROIC is supported by high margins. The slight uptick in 2027Q1 to 9.6% may indicate improved working capital management or higher utilization. Investors should monitor whether AI-driven automation can lift asset turnover without eroding margins, as this would be a key driver of future ROIC expansion.
Working Capital Efficiency Shows Mixed Signals
DSO improved to 103 days in 2027Q1 from 117 days a year earlier, while DPO remained stable at 13 days, based on financial statements. This suggests better receivables collection, but the cash conversion cycle remains elevated due to negative DPO.
The 14-day reduction in DSO indicates improved collection efficiency, possibly due to tighter credit management or a shift in contract mix. However, the consistently low DPO (around 12-13 days) suggests Infosys pays suppliers quickly, which may reflect its service-oriented model with limited payables leverage. The negative cash conversion cycle (since DIO is not disclosed, but likely minimal) implies that working capital is a drag on cash flow, though the company's strong FCF margin of 19.1% mitigates this concern.
Minimal Leverage Provides Strategic Flexibility
Debt-to-equity stands at 0.10 with interest coverage above 93x, as reported in the latest quarter. This indicates a net cash position and ample capacity to service debt, even under stress.
The low leverage and high interest coverage suggest that Infosys has significant financial flexibility to fund buybacks, dividends, or strategic acquisitions without straining its balance sheet. The D/EBITDA ratio of 0.77 is well below typical covenant thresholds, implying minimal refinancing risk. However, the company's conservative M&A approach may limit its ability to acquire AI capabilities, which could be a competitive disadvantage relative to peers like Accenture.
Liquidity Buffer Remains Comfortable
Current ratio improved to 1.86 in 2027Q1 from 1.79 in 2026Q3, with cash of $2.3 billion, according to the latest balance sheet. This suggests a solid buffer against short-term obligations.
The current ratio, though slightly down from 2.31 in 2024Q4, remains above 1.5, indicating adequate liquidity. The quick ratio equals the current ratio, reflecting minimal inventory, which is typical for a services firm. Under a severe stress scenario, such as a prolonged demand downturn, the cash position and strong FCF generation would likely cover obligations without needing external financing. However, the high payout ratio (near 60% of FCF) could reduce the buffer if earnings decline.
Misapplied P/E Overlooks AI Disruption
The trailing P/E of 14.39 appears cheap versus peers, but this multiple may be misleading given the potential for AI to compress billable hours, as suggested by industry trends. Investors should focus on EV/EBITDA and FCF yield instead.
The P/E ratio is commonly used to value IT services firms, but for Infosys, it may understate the risk of AI-driven margin compression. The forward P/E of 15.53 implies modest growth expectations, yet the PEG of 2.26 suggests the market is pricing in low growth. A more appropriate metric is EV/EBITDA, which at 10.15 is in line with peers and accounts for the company's net cash position. Additionally, the P/FCF of 12.98 highlights the company's strong cash generation, which is a more reliable indicator of value in a business facing potential disruption to its labor-based model.