Question: solve this for Infosys. Take TCS as a the competitor Evaluate your company, along with that of your direct competitor, using data available to you

solve this for Infosys. Take TCS as a the competitor

Evaluate your company, along with that of your direct competitor, using data available to you for three financial years by using the multiples approach. Analyze it based on the following parameters:

  1. P/E ratio
  2. Price / sales ratio

What are your observations based on the above?

Also calculate the Enterprise value for 1 year (Enterprise Value can be calculated using the following formula = market value of common stock (number of shares outstanding x market price per share) + market value of preferred equity + total debt- cash - investments), for your company as well as your direct competitor, and analyse the following:

  1. EV/EBITDA
  2. EV/Sales

State your observations.

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