MeritValue

Infosys Ltd

INFYdata completeness 75%10 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

Infosys Ltd earns about 38% on invested capital, and has bought back 3% of its shares over 5 years. The applicable estimate puts fair value near $7.44 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$13.6B1$16.3B2$18.2B3$18.6B3$19.3B3
Net income$2.61B4$2.96B5$2.98B6$3.17B6$3.16B6
Operating cash flow$3.26B7$3.35B8$2.85B9$3.15B9$4.35B9
Capital expenditure—————
Free cash flow (derived)—————
Total debt—————
Cash & equivalents$3.38B10$2.31B11$1.48B11$1.77B11$2.86B11
Diluted shares4.26B4.21B4.15B4.15B4.15B

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$26.98
your share of equity
Profit it earned you last year
$7.6
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $26.98 of net worth that earned you $7.6 last year.

iii. Is this a good business?
Moat signal · return on invested capital
38% avg · 5y
FY21 37%FY22 39%FY23 39%FY24 36%FY25 38%

It earned an average 38% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−3% shares · 5y

Share count is down 3% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 1 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 1 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$7.44
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$2.98B
  • growthAssumed0.0%
Graham Number
$6.79
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2021-03-31 · accession 0000950170-23-028187 (RevenueFromContractsWithCustomers)
  2. 20-F · period ending 2022-03-31 · accession 0000950170-24-076649 (RevenueFromContractsWithCustomers)
  3. 20-F · period ending 2023-03-31 · accession 0000950170-25-091925 (RevenueFromContractsWithCustomers)
  4. 20-F · period ending 2021-03-31 · accession 0000950170-23-028187 (ProfitLossAttributableToOwnersOfParent)
  5. 20-F · period ending 2022-03-31 · accession 0000950170-24-076649 (ProfitLossAttributableToOwnersOfParent)
  6. 20-F · period ending 2023-03-31 · accession 0000950170-25-091925 (ProfitLossAttributableToOwnersOfParent)
  7. 20-F · period ending 2021-03-31 · accession 0000950170-23-028187 (CashFlowsFromUsedInOperatingActivities)
  8. 20-F · period ending 2022-03-31 · accession 0000950170-24-076649 (CashFlowsFromUsedInOperatingActivities)
  9. 20-F · period ending 2023-03-31 · accession 0000950170-25-091925 (CashFlowsFromUsedInOperatingActivities)
  10. 20-F · period ending 2021-03-31 · accession 0000950170-24-076649 (CashAndCashEquivalents)
  11. 20-F · period ending 2022-03-31 · accession 0000950170-25-091925 (CashAndCashEquivalents)