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Infosys (NSE:INFY) Cyclically Adjusted PB Ratio : 7.51 (As of May. 20, 2024)


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What is Infosys Cyclically Adjusted PB Ratio?

As of today (2024-05-20), Infosys's current share price is ₹1444.30. Infosys's Cyclically Adjusted Book per Share for the quarter that ended in Dec. 2023 was ₹192.29. Infosys's Cyclically Adjusted PB Ratio for today is 7.51.

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

NSE:INFY' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 4.13   Med: 6.75   Max: 11.58
Current: 7.51

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.

NSE:INFY's Cyclically Adjusted PB Ratio is ranked worse than
84.08% of 1344 companies
in the Software industry
Industry Median: 2.62 vs NSE:INFY: 7.51

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 ₹193.432. 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 ₹192.29 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 8.02 -

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
=1444.30/192.29
=7.51

* 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)
=193.432/152.9243*152.9243
=193.432

Current CPI (Dec. 2023) = 152.9243.

Infosys Quarterly Data

Book Value per Share CPI Adj_Book
201403 105.770 91.425 176.919
201406 103.237 94.103 167.768
201409 109.133 96.780 172.443
201412 112.692 96.780 178.066
201503 119.761 97.163 188.491
201506 118.068 99.841 180.843
201509 126.551 101.753 190.193
201512 127.688 102.901 189.761
201603 136.438 102.518 203.522
201606 133.552 105.961 192.744
201609 142.000 105.961 204.936
201612 143.048 105.196 207.950
201703 153.112 105.196 222.580
201706 149.568 107.109 213.546
201709 156.308 109.021 219.253
201712 141.074 109.404 197.193
201803 149.048 109.786 207.613
201806 138.210 111.317 189.870
201809 149.429 115.142 198.462
201812 151.704 115.142 201.484
201903 150.504 118.202 194.715
201906 132.915 120.880 168.150
201909 143.598 123.175 178.280
201912 143.060 126.235 173.306
202003 151.988 124.705 186.381
202006 156.133 127.000 188.004
202009 166.768 130.118 195.998
202012 170.026 130.889 198.650
202103 179.118 131.771 207.873
202106 167.703 134.084 191.267
202109 164.940 135.847 185.675
202112 167.350 138.161 185.233
202203 180.634 138.822 198.984
202206 173.832 142.347 186.748
202209 188.022 144.661 198.762
202212 177.492 145.763 186.212
202303 182.417 146.865 189.944
202306 180.188 150.280 183.358
202309 195.089 151.492 196.933
202312 193.432 152.924 193.432

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  (NSE:INFY) 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 (NSE:INFY) 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).