Infosys DCF

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Varying return on equity and terminal growth rate .  1.

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Varying Change in Infosys Market Share and Return on Equity 3  .     2.

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Terminal growth rate 3  . Change in Infosys Market Share vs. 3.

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0% . Infosys Market Share % 1997-98 Growth Rate of Infosys Market Share 35 0.

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25 689.474.5 64.15 23.782. all amounts are in US$ M) Time Period Year 0 1999 1 2000 2 2001 3 2002 4 2003 5 2004 Market Size Infosys Market Share (%) 4.535.93 19.06 2.32 1. (Unless otherwise specified.99 1.613.06 18.61 438.00 2.20 12.94 320.314.73 Total Revenues 1.047.36 1.414.04 41.53  !" !#$%& ?  !" !'#($ .35 35 15.170.9 22.41 8.948.366.00 4.67 39.054. net -44.04 41.51 26.60 951.51 18.46 35 Local revenues (in US$ terms) Y2K Revenues Other Revenues 135.42 620.95 27.57 3.00 3.37 0.00 7.43 382.62 5.57 268.73 Discounted Cash Flows -44.705.59 603.084.48 1.610.501.30 250.00 Free Cash Flows for ADSs.92 5.29 204.44 170.48 27.682.42 975.05 35 10.59 Free Cash Outflows -50.37 19.300.71 757.17 Net Present Value 43.26 492.86 43.31 495.73 Operating Margin (%) Operating Profits Taxes Net Income Free Cash Flows for the Entire Company Free Cash InFlows for ADSs Terminal Value in 2004 Terminal Value in 1999 ADS Share of TV 453.07 1.72 278.06 64.27 10.65 2.26 20.641.165.81 20.18 35 24.65 Depreciation 6.34 16.41 10.239.06 64.1 45.33 0.6 32.87 35 36.93 12.41 8.94 108.75 394.83 68.7 242.96 11.31 Working Capital Increases 3.661.47 16.73 0.2 15.00 16.00 Capital Expenditures 11.48 208.70 29.70 0.00 11.994.45 322.35 1.559.80 9.47 16.505.51 26.66 13.29 5.00 35 6.419.08 2.14 21.981.72 19.91 1.59 7.

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535.00 11.00% Cash Flow Projections (Unless otherwise specified.2 15.20 12.18 35 24.35 35 15.57 268.613.60 951.1 45.94 320.610.42 975.73 0.32 1.165.30 250.25 689.67 39.72 19.559.93 19.80 9.300.87 35 36.5 64.782.084.91 1.59 7.46 35 Local revenues (in US$ terms) Y2K Revenues Other Revenues 135.        % of shares held in the form of ADSs Terminal Value Growth Rate 2.62 5.36 1.08 2.661.054.99 1.26 20.65 Depreciation 6.15 23.414.73 Total Revenues 1.81 20.34 16.37 0.07 1.75 394.06 18.366.83 68.42 620.72 278.92 5.705.00 35 6.59 603.474.31 Working Capital Increases 3.170.501.00 2.00 4.047.419.48 1.7 242.37 19.96 11.57 3.94 108.05 35 10.66 13.74% 3.65 2.71 757.48 27.9 22.00 Capital Expenditures 11.239.00 7.6 32.682.948.48 208.70 0.45 322.86 43.51 18.31 495.505.43 382.61 438.994. all amounts are in US$ M) Time Period Year 0 1999 1 2000 2 2001 3 2002 4 2003 5 2004 Market Size Infosys Market Share (%) 4.44 170.641.35 1.33 0.26 492.06 2.314.27 Operating Margin (%) Operating Profits Taxes Net Income Free Cash Flows for the Entire Company .41 8.00 3.981.95 27.

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