International Business Machines Corp (IBM) is fairly valued and Infosys Ltd ADR (INFY) is undervalued.
Against our estimates of intrinsic value, INFY trades at the wider discount: a margin of safety of +76%, against -5% for IBM.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.4% (average of 3 methods) values the shares at $220.67; the price of $231.38 is 5% above that value, and 78% of that value comes from beyond year five.
Leak Score 65/100 on 9 of 12 signals
A 8.8x revenue multiple, adjusted for growth and margin, values the shares at $44.68; the price of $10.76 is 76% below that value.
Leak Score 100/100 on 3 of 12 signals
| Metric | IBM | INFY |
|---|---|---|
| Verdict | Fairly valued | Undervalued |
| Price | $231.38 | $10.76 |
| Intrinsic value | $220.67 | $44.68 |
| Margin of safety | -5% | +76% |
| Leak Score | 65/100 (9/12) | 100/100 (3/12) |
| Market cap | $218.0B | $43.7B |
| Revenue growth, 5 years | 4.1% | 8.4% |
| Operating margin | 20.9% | 20.7% |
| Net margin | 15.5% | 16.4% |
| Return on equity | 34.5% | 32.3% |
| Debt to equity | 1.89 | 0.10 |
| P/E | 20.5x | 13.2x |
| Forward P/E | 17.6x | 12.9x |
| P/B | 6.3x | 4.5x |
| Dividend yield | 2.9% | 5.8% |