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Infosys Limited (INFY)
The model for this company lays out financial schedules across multiple columns. Open it on a viewport at least 900px wide to work with the figures.
MINIMUM VIEWPORT: 900PX
DCF Implied Price
₹1,028.67
-11.3% vs mkt
From NSE filing
Market Price
₹1,160.10
As of 2026-11-04 · Close
Statements
FY26
Ended 2026-03-31
Enterprise Value
₹3.90L Cr
PV FCFF + PV TV
Terminal value 70.1% of EV
Equity Value
₹4.24L Cr
Net Debt Adjusted
WACC
12.68%
CAPM / Capital Cost
Terminal Growth (g)
4.00%
Gordon Growth
Valuation Drivers
base scenario
WACC & Capital Cost
Risk-Free Rate (Rf)6.78%
Beta (β)0.86
Equity Risk Premium (ERP)7.08%
Cost of Equity (Ke)12.86%
Pre-Tax Cost of Debt (Kd)4.53%
Effective Tax Rate (t)25.17%
After-Tax Cost of Debt3.39%
Weights (Equity / Debt)98.1% / 1.9%
Weighted Average Cost of Capital12.68%
Source: CAPM: Rfr=6.78% (INDIA market default for rfr (10Y sovereign yield %)), Beta=0.86 (Per-company registry benchmark beta vs primary index (0.79), Blume-adjusted), ERP=7.08% (INDIA market default for erp (Equity Risk Premium %)). Cost of Equity=12.86% = Rf + Beta x ERP. Pre-tax Cost of Debt=4.53% (after-tax 3.39%). Capital Weights: Equity=98.1%, Debt=1.9%.
Return Metrics & Financial Health
Terminal ROIC
45.8%
+33.1% vs WACC
FCF Yield (Yr 1)
6.3%
FCFF / Equity Val
Implied EV / EBIT
9.8x
Forward Multiple
Net Debt Position
+₹34,460
Net Cash Balance
FCFF & DCF Valuation Schedule
PV FCFF: ₹1.17L Cr
|PV TV: ₹2.73L Cr
|Net: +₹34,460@ 2026-03-31
|Price: ₹1,028.67
| DCF Line Item (Mid-Year) | FY27 | FY28 | FY29 | FY30 | FY31 |
|---|---|---|---|---|---|
EBIT (Operating Profit) EBIT (Operating Profit)Definition Earnings Before Interest and Taxes: core operating profitability before capital structure and taxes. Formula: Revenue - COGS - Operating Expenses - D&A | 39,853 | 42,970 | 46,330 | 49,953 | 53,859 |
Tax Rate % Tax Rate %Definition Effective corporate tax rate applied to operating earnings for NOPAT calculation. Formula: Taxes / PBT | 26.3% | 26.0% | 25.7% | 25.5% | 25.2% |
NOPAT NOPATDefinition Net Operating Profit After Tax: un-levered profit generated purely by core operations. Formula: EBIT × (1 - Effective Tax Rate) | 29,368 | 31,789 | 34,405 | 37,235 | 40,303 |
+ D&A + D&ADefinition Depreciation & Amortization added back because it is a non-cash accounting expense. Formula: Cash Flow Statement D&A Add-back | 5,605 | 6,044 | 6,516 | 7,026 | 7,575 |
− CapEx − CapExDefinition Capital Expenditures: net cash spent on property, plant, equipment, and intangible assets. Formula: Cash Flow Statement Capital Investments | (3,590) | (3,871) | (4,174) | (4,500) | (4,852) |
± ΔNWC ± ΔNWCDefinition Change in Non-Cash Operating Working Capital: cash invested or freed up in working capital. Formula: − (Δ Receivables + Δ Inventory − Δ Payables) | -3,578 | -3,875 | -4,178 | -4,505 | -4,857 |
− Stock Comp − Stock CompDefinition Stock-based compensation deducted as a real economic cost even though non-cash under accounting rules. Formula: Cash Flow Statement SBC (when reported) | (1,026) | (1,107) | (1,193) | (1,287) | (1,387) |
= FCFF (Free Cash Flow) = FCFF (Free Cash Flow)Definition Free Cash Flow to Firm: unlevered cash flow available to all debt and equity capital providers. Formula: NOPAT + D&A − CapEx − ΔNWC − Stock Comp | 26,778 | 28,980 | 31,376 | 33,969 | 36,782 |
Discount Factor (Mid-Year) Discount Factor (Mid-Year)Definition Mid-year discount factor assuming cash flows arrive continuously throughout the year. Formula: 1 / (1 + WACC)^(t - 0.5) | 0.9421 | 0.8359 | 0.7418 | 0.6584 | 0.5843 |
PV(FCFF) PV(FCFF)Definition Present Value of Free Cash Flow discounted back to current fiscal year. Formula: FCFF × Mid-Year Discount Factor | 25,228 | 24,223 | 23,276 | 22,365 | 21,493 |
| Σ PV of Explicit Forecasts (PV FCFF) | ₹116,586 | ||||
| + PV of Terminal Value (4.0% g, 70% of EV) | ₹273,232 | ||||
| Enterprise Value (EV) | ₹389,819 | ||||
| + Net Cash & Liquid Assets | + ₹34,460 | ||||
| Equity Value DCF Implied Share Price | ₹424,279 ₹1,028.67 / share | ||||
WACC: 12.68%Cost of Equity: 12.86%Cost of Debt: 3.39%Equity Wt: 98.1%
Terminal ROIC: 45.8% (Reinvest 8.7%)
Financial Forecast Summary
| Line Item | FY27 | FY28 | FY29 | FY30 | FY31 |
|---|---|---|---|---|---|
| Revenue | ₹192,620 | ₹207,683↑ | ₹223,924↑ | ₹241,435↑ | ₹260,315↑ |
| EBITDA | ₹45,458 | ₹49,013↑ | ₹52,846↑ | ₹56,979↑ | ₹61,434↑ |
| EBIT (Operating Profit) | ₹39,853 | ₹42,970↑ | ₹46,330↑ | ₹49,953↑ | ₹53,859↑ |
| Net Profit (PAT) | ₹32,125 | ₹34,557↑ | ₹37,183↑ | ₹40,023↑ | ₹43,102↑ |
| D&A | ₹5,605 | ₹6,044↑ | ₹6,516↑ | ₹7,026↑ | ₹7,575↑ |
| CapEx | ₹3,590 | ₹3,871↑ | ₹4,174↑ | ₹4,500↑ | ₹4,852↑ |
| Operating Cash Flow | ₹34,152 | ₹36,725↑ | ₹39,521↑ | ₹42,545↑ | ₹45,821↑ |