Infosys Moves Ahead of TCS on Valuation Charts
Analysts expect Infosys to trade at a premium to TCS on superior revenue and earnings growth
Mumbai: Infosys is back to being the most expensive technology stock as the recent strong earnings performance has revived investor interest in the stock. Infosys’s valuations, as per consensus earnings estimates of analysts who track the company, have moved ahead of rival TCS following the recent outperformance in the stock price.
Infosys’ price to earnings (PE) ratio is currently at 18.59 times its 12-month forward earnings, a tad above TCS’ 18.56 times, according to Bloomberg estimates. Infosys shares have gained 16.43% in the last one year, while TCS gained only 3.46% over the same period.
Infosys hit a 52-week high of ₹ 1,267.90 on Monday as brokerages re-rated the stock after the company gave strong revenue guidance of 11.8-13.8% for this fiscal.