Infosys ends down 4.5%, valuation gap with TCS hits all-time high

ET Intelligence Group: The valuation gap between TCS and Infosys reached its widest on Thursday after the latter’s stock closed 4.5 per cent lower at Rs 1,284.5 on the BSE. The stock of TCS touched a 52-week high of Rs 1,887 intraday before closing 0.6 per cent higher at Rs 1,881.7.

At Thursday’s closing price of Rs 1,284.5, Infosys was valued at a trailing priceearnings multiple of 17.5. This was 10.4 points lower than TCS’ P/E of 27.9. Five years ago, the gap was at 6.5 while 10 years ago, Infy’s P/E was 5.5 points higher than that for TCS.


The gap has widened over the past few years with TCS commanding a better valuation following improved operating profitability and higher traction in the digital solutions.

In addition, the gap between their market caps has also widened to Rs 4.4 lakh crore now from Rs 1.6 lakh crore five years ago.