Today we're going to take a closer look at large-cap Technology company Infosys, whose shares are currently trading at $17.62. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!
Infosys Limited, together with its subsidiaries, provides consulting, technology, outsourcing, and next-generation digital services in North America, Europe, India, and internationally. The company belongs to the Technology sector, which has an average price to earnings (P/E) ratio of None and an average price to book (P/B) ratio of None. In contrast, Infosys has a trailing 12 month P/E ratio of 24.1 and a P/B ratio of 7.51.
Infosys's PEG ratio is 1.67, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.