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Is this Large Market Cap Stock target price reasonable for Infosys Limited (NYSE:INFY)?

The company in question is, Infosys Limited (NYSE:INFY) currently with a stock price of 15.88 (-0.28% today). The market cap for Infosys Limited is 36564.58, and is in the sector Technology, and Technical & System Software industry. The target price for Infosys Limited is 19.13. Currently Infosys Limited is trading with a P/E of 17.48, and a forward P/E of 14.8. Average volume for Infosys Limited is 4173.69 and so far today it is 4673454.

Performance in the last year for Infosys Limited has been -9.79%. For EPS growth, Infosys Limited has seen a growth of 6.70%, and is looking to grow in the next year to 12.55%. More long term stats show that EPS growth has been 145.90% over the last five years and could be 11.67% for the next five years. Infosys Limited has seen sales growth quarter over quarter at 16.90%, with EPS growth quarter over quarter at 13.40%. The 20-day simple moving average is -8.38%, with the 200-day simple moving average coming to -9.11%.

Since the IPO date for Infosys Limited on the 3/11/1999, Infosys Limited has seen performance year to date to be -3.92%. With Infosys Limited trading at 15.88, the dividend yield is 2.26%, and the EPS is 0.91.

So could Infosys Limited, be undervalued? Well as said before P/E is 17.48. The PEG is 1.5, P/S is 3.76 and the P/B is at 3.96. The P/cash is 7.85, with P/free cash flow at 70.47.

Infosys Limited ability to deal with debt shows that the current ratio is 3.5, and the quick ratio is 3.5. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, Infosys Limited has a gross margin of 37.10%, an operating margin of 25.00% and a profit margin of 21.40%.Payout ratio for Infosys Limited is 40.30%. Return on assets come to 18.90% with return on investment coming to 16.80%.

Insider ownership for Infosys Limited, is at 18.20% and institutional ownership comes to 19.10%. Outstanding shares are at 2296.77. While shares float is 2012.04. The float short is currently 2.17%, and short ratio is 10.45.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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