Financial Mode

Infosys Recommendation BUY Target

Company Overview
Price Key Stats Market Data
Ticker NSE: INFY Founded 1981 Shares O/S (Crores)
Current Price ₹ 1,584.00 Chairman N.r. Narayana Murthy Market Cap (Crores)
Target Price ₹ 1,608.89 Primary Industry Information Technology 52 Week High/Low

Revenue EBITDA Net Income

102,673 30,090 19,423

9.70% 20.02% 16.73%
vs. previous financial year vs. previous financial year vs. previous financial year

Gross Profit Margin EBITDA Margin Net Profit Margin

34.89% 29.31%
 Financial Model of Infosys
₹ 1,608.89 Date ### Year of Financial Metrics

Market Data Valuation Market DCF (Exit Multiple)

Shares O/S (Crores) 425 Share Price ₹ 1,584.00 ₹ 1,604.55
Market Cap (Crores) ₹ 665,695.00 Net Debt (Crores) ₹ -19,389.00 ₹ -19,389.00
52 Week High/Low ₹ 1,591.00 ₹ 761.50 Enterprise Value (Crores) ₹ 685,084.00 ₹ 662,706.07

Net Income Current Ratio

19,423 2.5x
16.73% -2.75%
vs. previous financial year vs. previous financial year

Net Profit Margin Return on Equity

29.31% 18.92% 25.44%
 2021

DCF (Gordon Growth) Comps

₹ 1,608.89 ₹ 1,720.40
₹ -19,389.00 ₹ -19,389.00
₹ 664,551.16 ₹ 750,299.63

Revenue vs EBITDA Margin

200,000 31.00%

180,000
30.00%
160,000

140,000
29.00%
120,000
25.44% 100,000 28.00%

80,000
27.00%
60,000

40,000
26.00%
20,000

0 25.00%
2018A 2019A 2020A 2021A 2022A 2023A 2024A 2025A 2026A

Revenue EBITDA Margin

 Ass
Historical
(Unless otherwise specified, all financials are in INR Crores) 2018A 2019A 2020A
Income Statement
Revenue
Revenue from operations 70,522 82,675 90,791
Growth % 17.23% 9.82%
Other Income 3,311 2,882 2,803
Growth % -12.96% -2.74%
Total Revenue 73,833 85,557 93,594
Growth % 15.88% 9.39%

Cost of Revenue
Employee benefit expenses 38,893 45,315 50,887
% of Revenue 52.68% 52.96% 54.37%
Cost of Technical Sub-Contractors 4,297 6,033 6,714
% of Revenue 5.82% 7.05% 7.17%
Cost of Software Packages 1,870 2,553 2,703
% of Revenue 2.53% 2.98% 2.89%

Expenses
Travel Expenses 1,995 2,433 2,710
% of Revenue 2.70% 2.84% 2.90%
Communication Expenses 489 471 528
% of Revenue 0.66% 0.55% 0.56%
Consultancy and Professional Charges 1,043 1,324 1,326
% of Revenue 1.41% 1.55% 1.42%
Other Expenses 3,042 4,376 3,656
% of Revenue 4.12% 5.11% 3.91%

Taxes 4,241 5,631 5,368

Tax Rate (%) 20.85% 26.76% 24.39%

Balance Sheet
Liabilities

Current Liabilities
Financial Liabilities
Accounts Payable (Days) 6 11 17
Other Financial Liabilities 6,946 10,452 10,481
Current Portion of LT debt/Leases Liabilities - - 619
Other Current Liabilities 3,606 4,388 4,842
Provisions 492 576 572
Tax Liabilities 2,043 1,567 1,490
% Increase in Tax Payments 32.78% -4.67%
 Liabilities Associated with Assets Held for Sale 324 - -

Equity
Equity Share Capital 1,088 2,170 2,122
Other Equity 63,835 62,778 63,328
Non Controlling Interests 1 58 394

Current Assets
Financial Assets
Cash & Cash Equivalents 19,818 19,568 18,649
Investments 6,407 6,627 4,655
Accounts Receivable 65 63 72
Loans 239 241 239
Other Financial Assets 6,684 5,505 5,457
Income Tax Assets (Net) - 423 7
Other Current Assets 1,667 5,687 7,082
Assets Held For Sale 2,060 - -

Non Current Assets

Property Plant & Equipment 10,116 11,479 12,435
Right-of-Use Assets - - 4,168
% of Lease Liabilities - - 14.85%
Capital Work-in-Progress 1,606 1,388 954
2.18% 1.62% 1.02%
Goodwill 2,211 3,540 5,286
Other Intangible Assets 247 691 1,900
Financial Assets
Investments 5,756 4,634 4,137
Loans 36 19 21
Other Financial Assets 284 312 737
Deferred Tax Assets (Net) 1,282 1,372 1,744
Income Tax Assets (Net) 6,070 6,320 5,384
Other Non Current Assets 2,265 2,105 1,426

Non Current Liabilities

Financial Liabilities
Lease Liabilities - - 4,014
Other Financial Liabilities 61 147 807
Deferred Tax Liabilities 541 672 968
Other Non Current Liabilities 259 275 279
 Assumptions
Forecasted
2021A 2022F 2023F 2024F 2025F 2026F

100,472 113,102 127,727 144,703 164,457 187,481

10.66% 12.57% 12.93% 13.29% 13.65% 14.00%
2,201 1,928 1,677 1,447 1,240 1,054
-21.48% -12.39% -13.04% -13.69% -14.34% -15.00%
102,673 115,030 129,404 146,151 165,696 188,534
9.70% 12.04% 12.50% 12.94% 13.37% 13.78%

55,541 61,572 69,266 78,230 88,692 100,916

54.10% 53.53% 53.53% 53.53% 53.53% 53.53%
7,084 7,749 8,717 9,845 11,161 12,700
6.90% 6.74% 6.74% 6.74% 6.74% 6.74%
4,223 3,600 4,050 4,574 5,185 5,900
4.11% 3.13% 3.13% 3.13% 3.13% 3.13%

554 2,583 2,905 3,281 3,720 4,233

0.54% 2.25% 2.25% 2.25% 2.25% 2.25%
634 689 775 875 992 1,129
0.62% 0.60% 0.60% 0.60% 0.60% 0.60%
1,261 1,612 1,813 2,048 2,322 2,642
1.23% 1.40% 1.40% 1.40% 1.40% 1.40%
3,286 4,699 5,287 5,971 6,769 7,702
3.20% 4.09% 4.09% 4.09% 4.09% 4.09%

7,205 7,201 8,142 9,238 10,514 12,001

27.06% 24.77% 24.77% 24.77% 24.77% 24.77%

14 12 12 12 12 12
11,390 12,761 14,355 16,213 18,381 20,915
738 590 443 295 148 0
6,233 6,983 7,856 8,872 10,059 11,445
713 799 899 1,015 1,151 1,309
2,146 (4) 1,065 1,243 1,453 1,698
34.22% -0.06% 13.08% 13.45% 13.82% 14.14%
 - - - - - -

2,124 2,124 2,124 2,124 2,124 2,124

74,227 83,161 93,552 105,659 119,789 136,300
431 431 431 431 431 431

24,714
2,342 2,624 2,952 3,334 3,780 4,301
69 67 67 67 67 67
159 178 200 226 257 292
6,410 6,014 6,014 6,014 6,014 6,014
- - - - - -
7,814 8,754 9,848 11,123 12,610 14,349
- - - - - -

12,560
4,794 3,904 2,928 1,952 976 -
15.39% 15.12% 15.12% 15.12% 15.12% 15.12%
922 811 710 618 535 461
0.90% 0.75% 0.63% 0.53% 0.45% 0.37%
6,079 6,079 6,079 6,079 6,079 6,079
2,072 2,321 2,611 2,949 3,344 3,805

11,863 13,291 14,952 16,886 19,145 21,784

32 27 27 27 27 27
1,141 1,278 1,438 1,624 1,841 2,095
1,098 1,230 1,384 1,563 1,772 2,016
5,811 5,896 5,896 5,896 5,896 5,896
1,281 1,281 1,281 1,281 1,281 1,281

4,587 4,587 4,587 4,587 4,587 4,587

1,514 1,696 1,908 2,155 2,443 2,780
875 980 1,103 1,246 1,412 1,607
763 763 763 763 763 763
 Incom
Historical
(Unless otherwise specified, all financials are in INR Crores) 2018A 2019A 2020A

Revenue
Revenue from operations 70,522 82,675 90,791
Other Income 3,311 2,882 2,803
Total Revenue 73,833 85,557 93,594

Cost of Revenue
Employee benefit expenses 38,893 45,315 50,887
Cost of Technical Sub-Contractors 4,297 6,033 6,714
Cost of Software Packages 1,870 2,553 2,703
Total Cost of Revenue 45,060 53,901 60,304

Expenses
Travel Expenses 1,995 2,433 2,710
Communication Expenses 489 471 528
Consultancy and Professional Charges 1,043 1,324 1,326
Other Expenses 3,042 4,376 3,656
Total Expenses 6,569 8,604 8,220

EBITDA 22,204 23,052 25,070

Depreciation 1,634 1,782 2,598
Amortization 229 229 295

EBIT 20,341 21,041 22,177

Interest Expense - - 170

PBT 20,341 21,041 22,007

Taxes 4,241 5,631 5,368

Net Income 16,100 15,410 16,639

`
 Income Statement
Forecasted
2021A 2022F 2023F 2024F 2025F 2026F

100,472 113,102 127,727 144,703 164,457 187,481

2,201 1,928 1,677 1,447 1,240 1,054
102,673 115,030 129,404 146,151 165,696 188,534

55,541 61,572 69,266 78,230 88,692 100,916

7,084 7,749 8,717 9,845 11,161 12,700
4,223 3,600 4,050 4,574 5,185 5,900
66,848 72,920 82,032 92,648 105,039 119,516

554 2,583 2,905 3,281 3,720 4,233

634 689 775 875 992 1,129
1,261 1,612 1,813 2,048 2,322 2,642
3,286 4,699 5,287 5,971 6,769 7,702
5,735 9,583 10,780 12,175 13,803 15,706

30,090 32,528 36,592 41,327 46,854 53,312

2,801 2,820 3,085 3,386 3,728 4,115
466 364 420 490 582 707

26,823 29,344 33,087 37,451 42,545 48,490

195 268 209 149 90 30

26,628 29,076 32,878 37,302 42,455 48,460

7,205 7,201 8,142 9,238 10,514 12,001

19,423 21,875 24,736 28,064 31,941 36,459

 Ba
Historical
(Unless otherwise specified, all financials are in INR Crores) 2018A 2019A 2020A

Liabilities

Current Liabilities
Financial Liabilities
Accounts Payable 694 1,655 2,852
Other Financial Liabilities 6,946 10,452 10,481
Current Portion of LT debt/Leases Liabilities - - 619
Other Current Liabilities 3,606 4,388 4,842
Provisions 492 576 572
Tax Liabilities 2,043 1,567 1,490
Liabilities Associated with Assets Held for Sale 324 - -
Total Current Liabilities 14,105 18,638 20,856

Non Current Liabilities

Financial Liabilities
Lease Liabilities - - 4,014
Other Financial Liabilities 61 147 807
Deferred Tax Liabilities 541 672 968
Other Non Current Liabilities 259 275 279
Total Non Current Liabilities 861 1,094 6,068

Equity
Equity Share Capital 1,088 2,170 2,122
Other Equity 63,835 62,778 63,328
Total Equity Attributable to Equity Holders 64,923 64,948 65,450
Non Controlling Interests 1 58 394

Total Equity 64,924 65,006 65,844

Total Equity and Liabilities 79,890 84,738 92,768

Assets

Current Assets
Financial Assets
Cash & Cash Equivalents 19,818 19,568 18,649
Investments 6,407 6,627 4,655
Accounts Receivable 13,142 14,827 18,487
Loans 239 241 239
Other Financial Assets 6,684 5,505 5,457
Income Tax Assets (Net) - 423 7
Other Current Assets 1,667 5,687 7,082
 Assets Held For Sale 2,060 - -
Total Current Assets 50,017 52,878 54,576

Non Current Assets

Property Plant & Equipment 10,116 11,479 12,435
Right-of-Use Assets - - 4,168
Capital Work-in-Progress 1,606 1,388 954
Goodwill 2,211 3,540 5,286
Other Intangible Assets 247 691 1,900
Financial Assets
Investments 5,756 4,634 4,137
Loans 36 19 21
Other Financial Assets 284 312 737
Deferred Tax Assets (Net) 1,282 1,372 1,744
Income Tax Assets (Net) 6,070 6,320 5,384
Other Non Current Assets 2,265 2,105 1,426
Total Non Current Assets 29,873 31,860 38,192

Total Assets 79,890 84,738 92,768

Balance Check 0 0 0
 Balance Sheet
Forecasted
2021A 2022F 2023F 2024F 2025F 2026F

2,645 2,424 2,727 3,080 3,492 3,973

11,390 12,761 14,355 16,213 18,381 20,915
738 590 443 295 148 -
6,233 6,983 7,856 8,872 10,059 11,445
713 799 899 1,015 1,151 1,309
2,146 (4) 1,065 1,243 1,453 1,698
- - - - - -
23,865 23,553 27,344 30,718 34,683 39,340

4,587 4,587 4,587 4,587 4,587 4,587

1,514 1,696 1,908 2,155 2,443 2,780
875 980 1,103 1,246 1,412 1,607
763 763 763 763 763 763
7,739 8,027 8,361 8,751 9,205 9,737

2,124 2,124 2,124 2,124 2,124 2,124

74,227 83,161 93,552 105,659 119,789 136,300
76,351 85,285 95,676 107,783 121,913 138,424
431 431 431 431 431 431

76,782 85,716 96,107 108,214 122,344 138,855

108,386 117,295 131,813 147,683 166,233 187,932

24,714 28,593 35,796 42,841 50,698 59,315

2,342 2,624 2,952 3,334 3,780 4,301
19,294 21,187 23,834 26,919 30,519 34,725
159 178 200 226 257 292
6,410 6,014 6,014 6,014 6,014 6,014
- - - - - -
7,814 8,754 9,848 11,123 12,610 14,349
 - - - - - -
60,733 67,350 78,645 90,457 103,878 118,995

12,560 15,122 17,099 19,409 22,116 25,291

4,794 3,904 2,928 1,952 976 -
922 811 710 618 535 461
6,079 6,079 6,079 6,079 6,079 6,079
2,072 1,025 1,375 1,890 2,686 4,006

11,863 13,291 14,952 16,886 19,145 21,784

32 27 27 27 27 27
1,141 1,278 1,438 1,624 1,841 2,095
1,098 1,230 1,384 1,563 1,772 2,016
5,811 5,896 5,896 5,896 5,896 5,896
1,281 1,281 1,281 1,281 1,281 1,281
47,653 49,945 53,168 57,226 62,355 68,937

108,386 117,295 131,813 147,683 166,233 187,932

0 0 0 0 0 0
 As
Historical
(Unless otherwise specified, all financials are in INR Crores) 2018A 2019A 2020A

Fixed Asset Schedule

Opening Balance 9,751 10,116 11,479
Add: Net Purchases 1,999 3,145 3,554
Total Fixed Assets 11,750 13,261 15,033
Less:Depreciation 1,634 1,782 2,598
Closing Balance 9,751 10,116 11,479 12,435

Rate Of Depreciation 13.91% 13.44% 17.28%

Fixed Asset Turnover Ratio 6.28 6.45 6.23

Intangible Asset Schedule

Opening Balance 776 247 691
Add: Net Purchases (300) 673 1,504
Total Intangible Assets 476 920 2,195
Less:Amortization 229 229 295
Closing Balance 776 247 691 1,900

Rate Of Amortization 48.11% 24.89% 13.44%

Intangible Asset Turnover Ratio 155.11 93.00 42.64

 Asset Schedule
Forecasted
2021A 2022F 2023F 2024F 2025F 2026F

12,435 12,560 15,122 17,099 19,409 22,116

2,926 5,382 5,061 5,697 6,435 7,290
15,361 17,942 20,184 22,796 25,844 29,406
2,801 2,820 3,085 3,386 3,728 4,115
12,560 15,122 17,099 19,409 22,116 25,291

18.23% 15.72% 15.29% 14.86% 14.43% 14.00%

6.68 6.41 6.41 6.41 6.41 6.41

1,900 2,072 1,025 1,375 1,890 2,686

638 (683) 770 1,005 1,378 2,027
2,538 1,389 1,795 2,380 3,268 4,713
466 364 420 490 582 707
2,072 1,025 1,375 1,890 2,686 4,006

18.36% 26.20% 23.40% 20.60% 17.80% 15.00%

40.45 83 72 61 51 40
 Debt
Historical
(Unless otherwise specified, all financials are in INR Crores) 2018A 2019A 2020A

Debt Schedule
Opening Balance - - -
Add/Less: Debt Taken (Repaid) - - 4,014
Closing Balance - - - 4,014

Interest Expense - - 170

Interest Rate (Pre Tax) - - 8.47%
 Debt Schedule
Forecasted
2021A 2022F 2023F 2024F 2025F 2026F

4,014 4,587 3,670 2,753 1,836 919

573 -917 -917 -917 -917 -919
4,587 3,670 2,753 1,836 919 0

195 268 209 149 90 30

4.53% 6.50% 6.50% 6.50% 6.50% 6.50%
 Work
Historical
(Unless otherwise specified, all financials are in INR Crores) 2018A 2019A

Current Assets
Cash & Cash Equivalents 19,818 19,568
Investments 6,407 6,627
Accounts Receivable 13,142 14,827
Loans 239 241
Other Financial Assets 6,684 5,505
Income Tax Assets (Net) - 423
Other Current Assets 1,667 5,687
Assets Held For Sale 2,060 -
Total Current Assets 50,017 52,878

Current Liabilities
Accounts Payable 694 1,655
Other Financial Liabilities 6,946 10,452
Current Portion of LT debt/Leases Liabilities - -
Other Current Liabilities 3,606 4,388
Provisions 492 576
Tax Liabilities 2,043 1,567
Liabilities Associated with Assets Held for Sale 324 -
Total Current Liabilities 14,105 18,638

Net Working Capital 35,912 34,240

Changes in Working Capital 1,672
 Working Capital Schedule
Historical Forecasted
2020A 2021A 2022F 2023F 2024F 2025F

18,649 24,714 28,593 35,796 42,841 50,698

4,655 2,342 2,624 2,952 3,334 3,780
18,487 19,294 21,187 23,834 26,919 30,519
239 159 178 200 226 257
5,457 6,410 6,014 6,014 6,014 6,014
7 - - - - -
7,082 7,814 8,754 9,848 11,123 12,610
- - - - - -
54,576 60,733 67,350 78,645 90,457 103,878

2,852 2,645 2,424 2,727 3,080 3,492

10,481 11,390 12,761 14,355 16,213 18,381
619 738 590 443 295 148
4,842 6,233 6,983 7,856 8,872 10,059
572 713 799 899 1,015 1,151
1,490 2,146 -4 1,065 1,243 1,453
- - - - - -
20,856 23,865 23,553 27,344 30,718 34,683

33,720 36,868 43,797 51,300 59,739 69,195

520 -3,148 -6,929 -7,503 -8,438 -9,456
2026F

59,315
4,301
34,725
292
6,014
-
14,349
-
118,995

3,973
20,915
-
11,445
1,309
1,698
-
39,340

79,655
-10,460
 Weighted Average C
Risk Free Rate 5-Jul-21

Cost Of Debt
Risk Free Rate 5-Jul-21
Add: Company Risk Premium Ashwath Damodaran (Baa1 Rating)
Cost of Debt
Tax Rates
Post Tax Cost of Debt

Cost of Equity
Risk Free Rate 5-Jul-21
Beta
Return on Markets
Equity Risk Premium Ashwath Damodaran
Cost of Equity
Weighted Average Cost of Capital
6.09%

WACC Calculation
6.09%
1.52% Cost of Debt 5.73% Weight of Debt 6.49%
7.61% Cost of Equity 10.91% Weight of Equity 93.51%
24.77%
5.73% WACC

6.09%
0.74
12.63%
6.85%
10.91%
Value of Debt 5,325
Value of Equity 76,782

10.57%
 Discounted Cashflo
Forecasted
(Unless otherwise specified, all financials are in INR Crores) 2022F 2023F

Perpetuity Growth Approach

EBIT 29,344 33,087
Less:Taxes 7,201 8,142
NOPAT 22,143 24,945
Add: Depreciation & Amortization 3,184 3,505
Add/Less: Changes in Working Capital (6,929) (7,503)
Less: Investments in Fixed Assets (5,382) (5,061)
FCFF 13,016 15,885

Terminal Growth Rate (As per Annual Report) 8.00%

WACC 10.57%

Terminal Value

Cashflows including Terminal Value 13,016 15,885

Implied Enterprise Value 664,551

Less: Total Debt 5,325
Add: Total Cash 24,714
Implied Equity Value 683,940
No of Shares Outstanding 425
Implied Share Price (INR) 1,609
Share Price as on 5-July-2021 (INR) 1,584
% Change in Share Price 1.59%

Exit Multiples Approach

EBIT 29,344 33,087
Less:Taxes 7,201 8,142
NOPAT 22,143 24,945
Add: Depreciation & Amortization 3,184 3,505
Add/Less: Changes in Working Capital (6,929) (7,503)
Less: Investments in Fixed Assets (5,382) (5,061)
FCFF 13,016 15,885

EV/EBITDA Multiple 18.5x

WACC 10.57%

Terminal Value

Cashflows including Terminal Value 13,016 15,885

Implied Enterprise Value 662,706

 Less: Total Debt 5,325
Add: Total Cash 24,714
Implied Equity Value 682,095
No of Shares Outstanding 425
Implied Share Price (INR) 1,605
Share Price as on 5-July-2021 (INR) 1,584
% Change in Share Price 1.32%
ounted Cashflow Sensitivit
Forecasted
2024F 2025F 2026F

37,451 42,545 48,490 Sensitivi

9,238 10,514 12,001
28,213 32,030 36,489 1608.9
3,877 4,310 4,822 8.57%
(8,438) (9,456) (10,460) 9.57%
(5,697) (6,435) (7,290) WACC 10.57%
17,954 20,449 23,560 11.57%
12.57%

989,330

17,954 20,449 1,012,890

37,451 42,545 48,490 Sensitivi

9,238 10,514 12,001
28,213 32,030 36,489 1604.6
3,877 4,310 4,822 8.57%
(8,438) (9,456) (10,460) 9.57%
(5,697) (6,435) (7,290) WACC 10.57%
17,954 20,449 23,560 11.57%
12.57%

986,280

17,954 20,449 1,009,841

Sensitivity Analysis

Sensitivity Analysis
Terminal Growth Rate
6.00% 7.00% 8.00% 9.00% 10.00%

Sensitivity Analysis
Exit Multiples
16.50x 17.50x 18.50x 19.50x 20.50x
 Com
Market Data
Price Market Cap
Company Name (₹/Share) (₹ Cr)
Tata Consultancy Services 3,307 1,223,257
Wipro 535 293,194
HCL Tech 976 264,772
Tech Mahindra 1,065 103,177

High 1,223,257
Mean 471,100
Median 278,983
Low 103,177

Valuation of Target
Target Financials
Valuation Multiple High
Net Debt (19,389)
Enterprise Value
Implied Equity Capital
Implied Share Price

Implied Share Price (Weighted) 1,720

 Comparable Company Analysis (Relative Valuation)
rket Data Financial Data
EV Revenue EBITDA EBIT Earnings EPS
(₹ Cr) (₹ Cr) (₹ Cr) (₹ Cr) (₹ Cr) (₹/Share)
1,216,412 164,177 48,462 44,397 32,430 87.67
284,548 61,943 17,096 14,331 10,795 19.70
262,079 75,379 20,975 16,364 11,145 41.07
102,148 37,855 7,585 6,127 4,428 45.70

1,216,412 164,177 48,462 44,397 32,430 88

466,297 84,839 23,529 20,305 14,699 49
273,313 68,661 19,036 15,347 10,970 43
102,148 37,855 7,585 6,127 4,428 20
tion)
Valuation
EV/Revenue EV/EBITDA EV/EBIT P/E
x x x x
7.4x 25.1x 27.4x 37.72x
4.6x 16.6x 19.9x 27.16x
3.5x 12.5x 16.0x 23.76x
2.7x 13.5x 16.7x 23.30x

7.4x 25.1x 27.4x 37.7x

4.5x 16.9x 20.0x 28.0x
4.0x 15.1x 18.3x 25.5x
2.7x 12.5x 16.0x 23.3x

Revenue EBITDA EBIT EPS

102,673 30,090 26,823 46
7.4x 25.1x 27.4x 37.7x

760,720 755,269 734,910

741,331 735,880 715,521
1,744 1,731 1,683 1,723
 Ratio
Historical
2018A 2019A 2020A

Liquidity Ratios
Current Ratio 3.5x 2.8x 2.6x
Cash Ratio 1.4x 1.0x 0.9x

Leverage Ratios
Debt Ratio 0.2x 0.2x 0.3x
Debt to Equity Ratio 0.2x 0.3x 0.4x

Efficiency Ratios
Asset Turnover Ratio 0.9x 1.0x 1.0x

Profitability Ratios
Gross Margin 38.97% 37.00% 35.57%
EBITDA Margin 30.07% 26.94% 26.79%
Return on Assets 20.15% 18.19% 17.94%
Return on Equity 24.80% 23.73% 25.42%

EPS 38 36 39
 Ratio Analysis
Forecasted
2021A 2022F 2023F 2024F 2025F 2026F

2.5x 2.9x 2.9x 2.9x 3.0x 3.0x

1.0x 1.2x 1.3x 1.4x 1.5x 1.5x

0.3x 0.3x 0.3x 0.3x 0.3x 0.3x

0.4x 0.4x 0.4x 0.4x 0.4x 0.4x

0.9x 1.0x 1.0x 1.0x 1.0x 1.0x

34.89% 36.61% 36.61% 36.61% 36.61% 36.61%

29.31% 28.28% 28.28% 28.28% 28.28% 28.28%
17.92% 18.65% 18.77% 19.00% 19.21% 19.40%
25.44% 25.65% 25.85% 26.04% 26.20% 26.34%

46 51 58 66 75 86