From Business Week
According to Capitaline data, since 2005 India's largest IT company TCS has seen a decline of almost 52.5% in its P/E ratio while Infosys has seen a decline of 39.5% during the same period. In fact, Infosys P/E ratio has come down from 202.92 in fiscal 1999-2000 to 19.73 in the fiscal year ended March 31, 2008, a decline of 90.2%.
That is truly interesting. As they say earlier in the article P/E ratio the investor way of saying how much growth this comany has in store, P/E going down is not a growth slowing down indicator. Where are those concerns for growth from the investors coming from. The Recession in the US, to the contrary wouldn't that drive more outsourcing. Or maybe investors don't see india as cheap anymore and in recession time money is king. The recent quarter numbers among the big Outsourcers in India were still very good. On the other hand Infectious greed mentioned recently he had heard from two Indian outsourcers business was down.