Firstsource Solutions Intrinsic Value

FSL • Commercial Services
Current Stock Price
₹318.50
Primary Intrinsic Value
₹124.80
Market Cap
₹222.0K Cr
-63.2% Downside
Median Value
₹117.29
Value Range
₹64 - ₹159
Assessment
Trading Above Calculated Value
Safety Margin
-100.0%

FSL Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹124.80 ₹99.84 - ₹149.76 -60.8% EPS: ₹10.40, Sector P/E: 12x
Book Value Method asset ₹63.70 ₹57.33 - ₹70.07 -80.0% Book Value/Share: ₹58.79, P/B: 1.0x
Revenue Multiple Method revenue ₹106.28 ₹95.65 - ₹116.91 -66.6% Revenue/Share: ₹132.86, P/S: 0.8x
EBITDA Multiple Method earnings ₹127.40 ₹114.66 - ₹140.14 -60.0% EBITDA: ₹1516.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹127.40 ₹101.92 - ₹152.88 -60.0% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹95.55 ₹86.00 - ₹105.11 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹95.55 ₹86.00 - ₹105.11 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹159.25 ₹143.33 - ₹175.18 -50.0% ROE: 17.6%, P/E Multiple: 14x
Graham Defensive Method conservative ₹117.29 ₹105.56 - ₹129.02 -63.2% EPS: ₹10.40, BVPS: ₹58.79
Method Types: Earnings Asset DCF Growth Dividend Conservative

Want to compare with current market value? Check FSL share price latest .

Valuation Comparison Chart

FSL Intrinsic Value Analysis

What is the intrinsic value of FSL?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Firstsource Solutions (FSL) is ₹117.29 (median value). With the current market price of ₹318.50, this represents a -63.2% variance from our estimated fair value.

The valuation range spans from ₹63.70 to ₹159.25, indicating ₹63.70 - ₹159.25.

Is FSL undervalued or overvalued?

Based on our multi-method analysis, Firstsource Solutions (FSL) appears to be trading above calculated value by approximately 63.2%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 1.59 Industry Standard: 2.0+ Above 1.5 Measures short-term liquidity capacity
Debt to Equity Ratio 1.93 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 17.6% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 16.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 1.17x Industry Standard: 1.0x+ Above 1.0x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹701 Cr ₹329 Cr Positive Free Cash Flow 7/10
March 2024 ₹644 Cr ₹616 Cr Positive Free Cash Flow 8/10
March 2023 ₹795 Cr ₹795 Cr Positive Free Cash Flow 8/10
March 2022 ₹704 Cr ₹407 Cr Positive Free Cash Flow 8/10
March 2021 ₹976 Cr ₹804 Cr Positive Free Cash Flow 8/10