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INFOSYS
PB (Price/Book ) Ratio

The Current P/B Ratio of INFOSYS is 8.87.

Share Price ₹1,863.8Feb 12,2025
Market Cap ₹773,884.9 Cr
Book Value₹87,203.0 CrMar2024 - Consolidated Results
Price/Book 8.87xCalculated as MarketCap/Book Value
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Definition & Calculation of PB (Price/Book ) ratio of INFOSYS

Price-to-Book ratio, P/B Multiple, or P/B Ratio is an important valuation multiple that is defined as:

P/B = Market Capitalization / Book Value

or, using per-share numbers:

P/B = Stock Price / Book Value Per Share

Applying the above formula, P/B ratio of INFOSYS is calculated as :

Current Market Cap [ ₹773,884.9 Cr] as on Feb 12,2025

(/) Book Value [ ₹87,203.0 Cr] based on Mar2024 - Consolidated Results

(=) P/B Ratio [ 8.87x ]

P/B Ratio indicates 'the multiple of book value' investors are willing to pay to own one share of the company.

Thus, for INFOSYS , the investors are currently willing to pay '8.87 times book value' to own 1 share of the company.

PB Multiples are one of the most widely used valuation multiple in industry.

Since P/B ratio uses Book Value in the calculation, P/B multiples are not always reliable for valuing companies with negative book value.

In such cases, you may consider using Price to Earnings ratio or Price to Sales ratio of INFOSYS !

The chart below summarizes the trend in P/B Ratio of INFOSYS over the last five years.

Historical PB (Price/Book ) ratio chart of INFOSYS


PB Ratio Performance Analysis for INFOSYS

- INFOSYS 's latest p/b ratio is 8.87x.

- INFOSYS 's p/b ratio for fiscal years ending Mar2024 to Mar2020 averaged 7.51x.

- INFOSYS 's operated at median p/b ratio of 7.65x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, INFOSYS 's p/b ratio peaked in Mar2022 at 10.7x.

- INFOSYS 's p/b ratio hit its five-year low in Mar2020 of 4.17x.


How does INFOSYS 's P/B Ratio benchmark against top 10 peers in IT - Software Industry?

Peer Comparison (IT - Software Industry)Book ValuePB RatioMarket Cap
INFOSYS 87,203.008.87773,884.9
TATA CONSULTANCY SERVICES LTD90,489.0015.791,429,220.0
HCL TECHNOLOGIES LTD67,624.006.89465,991.0
WIPRO LTD73,894.604.40324,826.0
LTIMINDTREE LTD19,673.808.59169,069.0
TECH MAHINDRA LTD26,364.906.23164,161.0
ORACLE FINANCIAL SERVICES SOFTWARE LTD7,725.9310.1778,572.3
PERSISTENT SYSTEMS LTD4,720.8718.6287,912.5
L&T TECHNOLOGY SERVICES LTD5,231.0010.3354,057.9
TATA ELXSI LTD2,490.6315.3838,298.8
MPHASIS LTD8,541.345.9350,673.0

IT - Software Industry Benchmark (Top 10) PB Analysis vs INFOSYS 's P/B Ratio

Top 10 Industry PeersPB Ratio
Min industry PB 4.40x
Max industry PB 18.62x
Median industry PB 8.87x
Average industry PB 10.11x



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