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STOCK COMPARISON

Firstsource Solutions vs International Business Machines: Fair Value & Quality

Both stocks run through our valuation models. Here is how Firstsource Solutions (FSL) and International Business Machines (IBM) compare, as of Sep 27, 2026.

As of Sep 27, 2026, Fair Value Calculator sees Firstsource Solutions as the less overvalued of the two: Firstsource Solutions trades at ₹259 versus a fair value of ₹222 (−14.6%), while International Business Machines trades at $226 versus $187 (−17.3%).
Firstsource Solutions
FSL.NSE · INR · Information Technology
−14.6%
upside to fair value
overvalued
Price₹259
Fair Value₹222
Quality59/100
International Business Machines
IBM · USD · Information Technology
−17.3%
upside to fair value
overvalued
Price$226
Fair Value$187
Quality63/100
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Head-to-head numbers

Green is the better side of a row, red the weaker one (for valuation multiples: lower = cheaper). Grey rows are for reference only and are not scored.

betterweakerfor reference, not scored

Firstsource SolutionsInternational Business Machines
Valuation
27.1×P/E (TTM)19.9×
24.3×P/E ex one-offs19.5×
n/aForward P/E (FY2026)18.3×
1.92×P/S (TTM)3.11×
4.17× · book value is mostly goodwillP/B6.58× · book value is mostly goodwill
11.7×EV/EBITDA15.5×
n/aPEG2.19×
−14.6%Fair value upside−17.3%
2.3%Dividend yield3.0%
n/aDividend per share$6.73
Profitability
12.2%Operating margin16.6%
0.93×EBIT margin trend (5Y)1.63×
15.9%Return on equity34.5%
8.1%Return on assets5.3%
Growth
19.5%Revenue growth (YoY)1.1%
16.9%Avg. growth/yr (3Y)3.7%
13.7%Avg. growth/yr (5Y)n/a
+15.6%Value creation/yr+16.2%
Balance & size
6.2×Interest coverage (EBIT/interest)5.3×
0.04×Debt / equity1.68×
$2BMarket cap$215B
healthyGrowth qualityhealthy
The P/E excluding one-off items is only shown where the special items are documented in the accounts (our own raw data or SEC filings). If one side lacks it, the reported P/E stays scored.

Firstsource Solutions leads: 7 to 5 metric wins.

n/a = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Firstsource Solutionsof which business quality 58 · market factors 43 International Business Machinesof which business quality 61 · market factors 32
ProfitabilityMargins and returns on capital today
49
59
Quality GrowthAre margins and returns improving?
48
68
CashflowEarnings quality: real cash, not paper profit
60
70
Fin. StrengthBalance sheet, leverage, solvency risk
59
39
InvestmentDisciplined investing over empire-building
55
66
Low VolatilityCalm price path (market factor)
62
52
MomentumPrice trend over the last 3–12 months (market factor)
43
27
52W MomentumDistance to the 52-week high (market factor)
20
18
Net IssuanceShare count: buybacks or dilution?
81
74

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyFirstsource SolutionsPrice ₹259International Business MachinesPrice $226
DCF Models+7.4%close to the price₹279−18.1%below the price$185
Earnings-Based−52.9%below the price₹122−62.6%below the price$84.42
Dividend Discount−71.6%below the price₹73.74−66.2%below the price$76.12
Multiples−6.4%close to the price₹243−9.0%close to the price$205
Asset-Based−83.6%below the price₹42.54−89.7%below the price$23.22
Growth DCF−4.0%close to the price₹249−36.9%below the price$142
Economic Profit−55.8%below the price₹115−67.2%below the price$74.02
Growth Earnings−14.6%close to the price₹222+4.6%close to the price$236
Minimum−83.6%below the price₹42.54−89.7%below the price$23.22
Maximum+7.4%close to the price₹279+4.6%close to the price$236
Median−33.8%below the price₹172−49.7%below the price$113
Geometric mean−45.3%below the price₹142−53.7%below the price$104

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Firstsource Solutions: 17 of 26 models see the stock below the current price.

International Business Machines: 20 of 24 models see the stock below the current price.

Scenario ranges

From our cautious bear scenario to the optimistic bull scenario. The white tick is the current price (value above it), the green tick the fair value (value below it): if the price sits left of the fair value, there is room to rise.

Firstsource Solutions
Price ₹259
Fair Value ₹222
Bear ₹152Bull ₹304
International Business Machines
Price $226
Fair Value $187
Bear $121Bull $266

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Firstsource Solutions · Information Technology

Quality score59 · above median
Fair value upside−14.6% · above median

International Business Machines · Information Technology

Quality score63 · above median
Fair value upside−17.3% · above median

Bottom line

As of Sep 27, 2026, Fair Value Calculator sees Firstsource Solutions as the less overvalued of the two: Firstsource Solutions trades at ₹259 versus a fair value of ₹222 (−14.6%), while International Business Machines trades at $226 versus $187 (−17.3%).

International Business Machines has the higher quality score (63/100).

Open Firstsource Solutions live analysis →

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.