Infosys Limited (INFY): fair value, margin of safety and Wheel Score

Is INFY undervalued?

INFY has a margin of safety of 97%: the stock closed at 12.13 on 16 Oct 2026 against a GLS average fair value of 355.75. 6 of the 9 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.

The 9 models disagree widely: Lynch gives 5.86 while 10 Cap gives 1,770.68. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files INFY under Quality / Blue-Chip: a high moat score and a high health score together.

Nine valuation models for INFY

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

On financial health INFY scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 7.6 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.

Returns on capital are high - ROIC 30.8%, ROE 33.9%, ROA 20.1% - with debt at 0.10 times equity and a free-cash-flow yield of 7.5%.

The dividend yield is high at 4.17% (payout ratio 65%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Software Services 95%, Software Products And Platforms 5% (fiscal year FY2026).

Institutional ownership scores 2/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 92: Prime

INFY scores 92 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 25/25), Piotroski health (16/20), the GLS moat (11/15), the option premium on offer (20/20) and how easily the stock trades (20/20).

Implied volatility is 49% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 210,647 contracts of open interest across all expiries, which means tight fills at most strikes.

Volume runs at 28.3M shares a day on a market cap of $49.2B, with a beta of 0.13 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 20 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

Infosys Limited reports earnings on 23 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

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