DCF Tool

INFY

Infosys Ltd – Custom Computer Programming Services
Analysis Results
Intrinsic Value $13.02
Latest Price $18.45
Relative Value 42% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 8.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 8.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 2.69 2.49
2023 2.91 2.51
2024 3.16 2.52
2025 3.42 2.54
2026 3.71 2.55
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 65.9 billion. This corresponds to a present value of 42.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 12.6 billion. Adding in the terminal value gives a total present value of 54.8 billion.

There are presently 4.21 billion outstanding shares, so the intrinsic value per share is 13.02.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 8,307,000,000
Current Cash 3,700,000,000
Current Liabilities 3,264,000,000
Current Debt 101,000,000
Non-Cash Working Capital (NCWC) 1,444,000,000
Change in NCWC -65,000,000
EBIT 3,325,000,000
Tax Provision 973,000,000
Depreciation and Amortization 441,000,000
Capital Expenditure -285,000,000
Unlevered Free Cash Flow 2,516,326,751
Current Assets 7,212,000,000
Current Cash 3,028,000,000
Current Liabilities 2,757,000,000
Current Debt 82,000,000
Non-Cash Working Capital (NCWC) 1,509,000,000
Change in NCWC 293,000,000
EBIT 2,724,000,000
Tax Provision 757,000,000
Depreciation and Amortization 407,000,000
Capital Expenditure -465,000,000
Unlevered Free Cash Flow 2,292,742,164
Current Assets 7,644,000,000
Current Cash 3,735,000,000
Current Liabilities 2,693,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,216,000,000
Change in NCWC -352,000,000
EBIT 2,696,000,000
Tax Provision 803,000,000
Depreciation and Amortization 287,000,000
Capital Expenditure -349,000,000
Unlevered Free Cash Flow 1,561,091,575
Current Assets 7,673,000,000
Current Cash 3,941,000,000
Current Liabilities 2,164,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,568,000,000
Change in NCWC 386,000,000
EBIT 2,648,000,000
Tax Provision 657,000,000
Depreciation and Amortization 289,000,000
Capital Expenditure -310,000,000
Unlevered Free Cash Flow 2,459,472,796
Current Assets 8,282,000,000
Current Cash 4,939,000,000
Current Liabilities 2,161,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,182,000,000
Change in NCWC 250,000,000
EBIT 2,515,000,000
Tax Provision 834,000,000
Depreciation and Amortization 254,000,000
Capital Expenditure -411,000,000
Unlevered Free Cash Flow 1,902,717,552
Current Assets 7,802,000,000
Current Cash 4,872,000,000
Current Liabilities 1,998,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 932,000,000
Change in NCWC 200,000,000
EBIT 2,375,000,000
Tax Provision 799,000,000
Depreciation and Amortization 222,000,000
Capital Expenditure -413,000,000
Unlevered Free Cash Flow 1,718,400,210
Current Assets 7,551,000,000
Current Cash 4,999,000,000
Current Liabilities 1,820,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 732,000,000
Change in NCWC -83,000,000
EBIT 2,258,000,000
Tax Provision 805,000,000
Depreciation and Amortization 175,000,000
Capital Expenditure -367,000,000
Unlevered Free Cash Flow 1,337,971,611
Current Assets 7,180,000,000
Current Cash 4,841,000,000
Current Liabilities 1,524,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 815,000,000
Change in NCWC -191,000,000
EBIT 1,979,000,000
Tax Provision 668,000,000
Depreciation and Amortization 226,000,000
Capital Expenditure -451,000,000
Unlevered Free Cash Flow 1,016,504,754
Current Assets 6,505,000,000
Current Cash 4,341,000,000
Current Liabilities 1,158,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,006,000,000
Change in NCWC 119,000,000
EBIT 1,909,000,000
Tax Provision 617,000,000
Depreciation and Amortization 207,000,000
Capital Expenditure -384,000,000
Unlevered Free Cash Flow 1,348,073,868
Current Assets 5,945,000,000
Current Cash 4,121,000,000
Current Liabilities 937,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 887,000,000
Change in NCWC 160,000,000
EBIT 2,013,000,000
Tax Provision 694,000,000
Depreciation and Amortization 195,000,000
Capital Expenditure -320,000,000
Unlevered Free Cash Flow 1,468,322,821

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