6. 3. According to their stock price in the late December 1998, what does this price imply for Infosys’ growth and key operating ratios if we assume that the price reflects the true operation of the firm? AVG 200 AVG 600 AVG 1100
7. (3.) According to their stock price in the late December 1998, what does this price imply for Infosys’ growth and key operating ratios if we assume that the price reflects the true operation of the firm?
8. (3.) According to their stock price in the late December 1998, what does this price imply for Infosys’ growth and key operating ratios if we assume that the price reflects the true operation of the firm? Year 1996 1997 1998 AVG Stock Price 200.00 600.00 1,100.00 Earning per Share 6.35 10.18 18.25 PE Ratio 31.50 58.94 60.27 Revenue 934.10 1,438.10 2,603.70 Revenue Growth Rate 60% 55% 81% Operating Profit 339.50 500.60 886.10 Gross Margin 36% 35% 34%
9. (3.) According to their stock price in the late December 1998, what does this price imply for Infosys’ growth and key operating ratios if we assume that the price reflects the true operation of the firm?
10. (3.) According to their stock price in the late December 1998, what does this price imply for Infosys’ growth and key operating ratios if we assume that the price reflects the true operation of the firm?
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12. 4.The case describes how Infosys differs from other software companies in India. To what degree is Infosys’s performance show this fact. Please cite numbers and examples? 1. Founders of company - had complementary skills in their position and responsibility - had experienced in technology and software industry - held leadership positions in Indian business associations 2. Responsive government but create a sustainable business themselves - attractive and retain employees by….. = Learning value-added = Financial value-added >> stock option plan/ loan program (low interest ) = Emotional value-added - creating max. value in India in a legal and ethical manner >> share & implement to Indian companies
13. (4.) The case describes how Infosys differs from other software companies in India. To what degree is Infosys’s performance show this fact. Please cite numbers and examples? 3. Attractive place for Headquarter : moved from Bombay to Bangalore (better access to engineering talent & quality of life) 4. Financial policy : - had avoided debt as much as possible - tight cost control and low capital expenditure - have liquidity of up to 25% of revenue (in cash & liquid assets) - pay dividend if cash surplus => 20% of a year’s profit - push for transparency business
14. 5. Take advantage of the capital market - launch 1 st market –priced IPO in 1993 (realize the employees create value of investment and creation the wealth in India) - take growth opportunities through investment ( Rs 95 million in 1992 => Rs 145 million in 1993 / stock split in 1994 / generate sufficient cash flow for all of its capitals needs) 6. The establishment of software development parks > offer facillities 7. “be a master at managing offshore opportunities, especially new technology” (technology move very fast but deliver capability the service in highest demand) 8. Infosys needs to establish brand in U.S. to protect its margins and drive future growth (others indian companies weak in sale and marketing) (4.) The case describes how Infosys differs from other software companies in India. To what degree is Infosys’s performance show this fact. Please cite numbers and examples?
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16. (5.) What is an appropriate value of Infosys in 1999 and please identify your reason and criticize your valuation method? Selected Valuation Method Method Multiple method Change stock market ,There is no PER of competitor. DFCF method Not suitable for fluctuate income firm and reorganize firm. Venture cap method Suitable
17. 6. Should Infosys list on a US exchange? If yes, why and on which exchange? What should Infosys’ management do to mitigate the issues stated by Mr. Nilekani, Infosys’ President? Should Infosys list on a US exchange? - เพื่อการเติบโตของบริษัท Infosys บริษัทควรเข้าตลาดหลักทรัพย์ If yes, why and on which exchange? - Infosys ได้มีทางเลือกในการขึ้น US Exchange ไว้ 2 ที่คือ NYSE และ Nasdaq ซึ่งสามารถพิจารณาได้ดังต่อไปนี้ หากเปรียบเทียบข้อดีและข้อเสียของทั้งสองตลาด ได้ดังต่อไปนี้ VS.
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19. (6.) Should Infosys list on a US exchange? If yes, why and on which exchange? What should Infosys’ management do to mitigate the issues stated by Mr. Nilekani, Infosys’ President? - ควรจะปรับปรุงและพัฒนาการจัดการสาธารณูปโภคด้าน เพื่อรองรับให้ตอบสนองกับจำนวนพนักงานที่มีความเป็นสากลมากขึ้นและจะเพิ่มขึ้นในอนาคต สิ่งที่ต้องทำเพื่อแก้ไขและบรรเทา บริจาคเงินให้กับเทศบาลเมือง Bangalor เพื่อจัดการปรับปรุงและพัฒนาด้านสาธารณูปโภคให้มีความเจริญและรองรับกับจำนวนพนักงานที่จะเพิ่มขึ้นในอนาคต ลงทุนติดตั้งเครื่องปั่นไฟสำรอง : เนื่องจากจำนวนพนักงานที่เพิ่มขึ้น ทำให้มีการใช้ระบบสาธารณูปโภคเพิ่มมากขึ้น แต่ระบบรองรับยังไม่มีพอ เพื่อเป็นการป้องกันในกรณีฉุกเฉิน
![[object Object],Timeline of Finanacial Issue 1977 1981 1986 1989 1991 1992 1993 1995 PCS Firm Infosys established Loan $225,000 Loan $250,000 Loan $150,000 Loan $100,000 Launch first IPO Private placement to international Investors](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)