Consider the following:1 US Dollar = 45.19500 Indian Rupee BSE Price of INFY = Rs.4,925.60 = 109 US DollarsBut BSE INFY = 2 x INFY ADRthis means INFY ADR = 0.5 x BSE INFY or INRY ADR = 55 US DollarsThis makes INFY overvalued? I hope someone prove me wrong. I like the stock but the data which is of 20 May 2004 is really confusing.
All of the indian stocks trade at a premium over here. The premium is actually much less than it used to be.
INFY is overvalued ..it is trading at almost the price of IBM which is ridiculous. IBM is 80 Billion dollar company. INFY is 1 billion. The true value and the price is bound to converge