Firstsource Solutions Limited (FSL) fair value: what the stock is really worth
As of Sep 25, 2026: fair value of Firstsource Solutions Limited ₹222, price ₹259, upside -14.6%, quality 59 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 27, 2026.
How to read this chart
60‑month range ₹87.08 – ₹393.70 · fair‑value band ₹152.38 – ₹303.52 · the ₹259.45 price screens above the ₹221.50 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 27, 2026.
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Firstsource Solutions Limited provides tech-enabled business processes in India, the United Kingdom, the United States, the United Arab Emirates, and internationally. It operates through Healthcare; Banking and Financial Services; Communication, Media and Technology; and Diverse Industries segments.
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Firstsource Solutions Limited provides tech-enabled business processes in India, the United Kingdom, the United States, the United Arab Emirates, and internationally. It operates through Healthcare; Banking and Financial Services; Communication, Media and Technology; and Diverse Industries segments. The company offers various banking and financial services and solutions, including customer acquisition, onboarding, transaction processing and payments, disputes and complaints, servicing, bereavement and power of attorney, fraud and financial crime, and account closure; lending services, such as origination, post-closing, title, settlement, and quality control and due diligence services; and collections. It also provides health plan services comprising claims operations, enrollment and billing, customer service, care coordination, credential provider, data and network management, benefit coding, maintenance, coverage, Medicaid enrollment, prior authorization, medical coding, denial management and prevention, patient billing and collections, and receivables management; and communication services, such as sales and retention, tech ops, receivables and collections management, and generative AI. In addition, it offers media/edtech solutions, such as content development and enrichment, learner support, student pre-registration and enrollment, and digital collections; and other services for retention and loyalty, meter-to-cash operations, crisis/contingency management, smart meter conversions, debt management, and complaints handling industries; and consulting services. It serves banking and financial services, healthcare, communications, media and technology, retail, energy, and utilities sectors. The company was formerly known as ICICI Onesource Limited and changed its name to Firstsource Solutions Limited in November 2006. The company was incorporated in 2001 and is based in Mumbai, India. Firstsource Solutions Limited is a subsidiary of RPSG Ventures Limited.
Stock analysis
Firstsource Solutions Limited (FSL) currently trades at ₹259.45, while our model-based Fair Value estimate is ₹221.50, implying the stock looks roughly 17.1% overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of ₹277.16 per share, and 9 of the 26 models we run sit above the ₹259.45 price.
Bear case: the Asset-Based group reads lowest at ₹42.54, and 17 of the 26 models stay below the price. Evidence for this calculation is high.
Scenario range: ₹152.38 (bear) to ₹303.52 (bull), the price of ₹259.45 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 59/100 (solid quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Firstsource Solutions Limited reported revenue of ₹95.6B in FY2026 versus ₹58.7B in FY2022, a compound +13.0%/yr. Reported net income was ₹6.7B in FY2026, compounding +5.8%/yr from FY2022.
Key figures
Market cap ₹183B (≈ $1.9B) · P/E ratio 27.1 · P/S ratio 1.91 · EPS (TTM) ₹9.56 · Dividend yield 2.3% · Net margin 7.1% · Return on equity 15.9% · Return on assets (EBIT) 11.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 41 out of 100 (medium confidence).
What moves the price
The share trades about 28% below its 52-week high and 27% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at 53% fair-value upside, at −15%, FSL screens richer than that median.
Fair Value models
Bear ₹152.38Fair Value ₹221.50Bull ₹303.52
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then (₹4.72 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+19.9%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+16.9%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.7%
Start year 2021 (pandemic). Over 10 years: +11.5% a year
Revenue growth 21 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+17.5%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+15.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year+13.3%
Dividend (yield on the price)2.3%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.13.3% vs 9.9%, picking up
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.13% → 12%
Start year 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+19.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+10.5%
Yearly sales growth analysts expect, extended to five years.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +14.3% a year for the price and +6.1% for the forecasts.
Compare Firstsource Solutions Limited with another stock
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Information Technology Services · 488 stocks
Beats the industry median on 9/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score59 · Above median
Fair Value upside−14.6% · Below median
Profitability
Return on equity (TTM)15.9% · Above median
Return on assets8.1% · Top 25%
Net margin (TTM)7.1% · Above median
Operating margin (TTM)12.2% · Above median
Growth and dividend
Revenue growth19.5% · Above median
Dividend yield (TTM)2.3% · Above median
Balance sheet
Debt / equity0.04× · Below median
Valuation Multiplesvs Information Technology Services median · lower = cheaper
P/E (TTM)27.1× · Pricier than median
P/B4.17× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Firstsource Solutions Limited (FSL) overvalued or undervalued?
As of Sep 27, 2026, our model estimates a fair value of ₹221.50 versus a price of ₹259.45, about −15% upside (overvalued).
What is the fair value of FSL?
Our model-based fair value for Firstsource Solutions Limited is ₹221.50 (as of Sep 27, 2026), built from audited fundamentals. The current price: ₹259.45.
What is the quality score of FSL?
Firstsource Solutions Limited has a Quality Score of 59/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Firstsource Solutions Limited (FSL)?
Our model-based price target is the fair value of ₹221.50 (as of Sep 27, 2026) from 26 valuation models. Cautious scenario ₹152.38, optimistic scenario ₹303.52. It is a calculation from audited fundamentals, not an analyst target.
What is the Firstsource Solutions Limited stock forecast for 2026?
Our models put fair value at ₹221.50, about −15% upside versus a price of ₹259.45 (overvalued). Cautious scenario ₹152.38, optimistic scenario ₹303.52. The calculation is refreshed regularly with new filings.
What is the revenue of Firstsource Solutions Limited (FSL)?
Firstsource Solutions Limited reported trailing-twelve-month revenue of about ₹95.6B (latest available figure, as of Sep 27, 2026).
Does Firstsource Solutions Limited pay a dividend?
Firstsource Solutions Limited currently shows a dividend yield of about 2.27% relative to its recent price (as of Sep 27, 2026).
What growth is priced into Firstsource Solutions Limited (FSL)?
For today's price to be fair in a discounted-cash-flow model, Firstsource Solutions Limited would have to grow free cash flow by +19.1 % per year for five years (discount rate 12.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +13.7 % per year. As of Sep 27, 2026.
What discount rate (WACC) does the fair value of FSL use?
Our models discount Firstsource Solutions Limited at 12.4 %: a base by market capitalisation (small), damped by beta 0.20, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Firstsource Solutions Limited that is +19.1 % per year a year over ten years, using the same discount rate (12.4 %) and the same formula as our fair value.
How much growth has Firstsource Solutions Limited (FSL) delivered so far?
Over the past 5 years revenue at Firstsource Solutions Limited grew +13.7 % a year. The price currently implies +19.1 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Firstsource Solutions Limited (FSL) growing?
The median revenue growth in the sector is +8.5 % a year. That is the yardstick for the growth priced into Firstsource Solutions Limited (+19.1 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Firstsource Solutions Limited (FSL)?
The free-cash-flow yield on the price is 4.61 %: that much free cash flow Firstsource Solutions Limited produces per unit of market value. When it exceeds the discount rate of our models (12.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Firstsource Solutions Limited (FSL)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Firstsource Solutions Limited it is ₹221.50 per share (as of Sep 27, 2026), against a price of ₹259.45. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Firstsource Solutions Limited stock overvalued or undervalued in 2026?
As of Sep 27, 2026, FSL trades above its calculated fair value: price ₹259.45, fair value ₹221.50, a gap of about −15% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of FSL?
No. The price is what the market pays today (₹259.45); the fair value is what the company's own numbers justify (₹221.50). For Firstsource Solutions Limited the two are ₹37.95 per share apart. That gap is exactly why we show both numbers side by side.
How much is Firstsource Solutions Limited worth?
The market values Firstsource Solutions Limited at about ₹183B (market capitalisation, as of Sep 27, 2026). Per share that is ₹259.45; our models calculate a fair value of ₹221.50 per share.
What do the bullish and bearish scenarios say about FSL?
Our models span a range for Firstsource Solutions Limited: cautious scenario ₹152.38, base ₹221.50, optimistic ₹303.52 per share (as of Sep 27, 2026, price ₹259.45). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of FSL?
Firstsource Solutions Limited trades at a price-to-earnings ratio of 27.1 (as of Sep 27, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹221.50 is built from several models across several years. Excluding one-off items of fiscal year 2026 it is 24.3 (reported 27.1). Other multiples: P/B 4.2, P/S 1.9, EV/EBITDA 11.7.
How solid is the balance sheet of Firstsource Solutions Limited (FSL)?
Balance-sheet figures for Firstsource Solutions Limited (as of Sep 27, 2026): return on equity 15.9%, debt of 0.04 per unit of equity. They feed the Quality Score of 59/100, which measures business quality independently of the share price.
How far is FSL from its 52-week high?
Firstsource Solutions Limited trades at ₹259.45, about 28% below its 52-week high of ₹359.36 and 27% above the low of ₹204.39 (as of Sep 25, 2026). Distance from the high says nothing about value: that is what the fair value of ₹221.50 is for.
Which stocks are comparable to Firstsource Solutions Limited?
From the same area (Technology) we also value International Business Machines Corporation, Accenture plc, Tata Consultancy Services Limited, Infosys Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Firstsource Solutions Limited stock attractive at the current price?
The data as of Sep 27, 2026: price ₹259.45, calculated fair value ₹221.50 (−15%), Quality Score 59/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of FSL calculated?
We run Firstsource Solutions Limited through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹221.50, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.9 % above its aggregate fair value. Firstsource Solutions Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Firstsource Solutions Limited (FSL)?
The closing price on Sep 25, 2026 was ₹259.45. Our model-based fair value is ₹221.50, about −15% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Firstsource Solutions Limited right now?
Solid but not exceptional quality (59/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range (₹152.38 to ₹303.52) leaves room in how you read the outcome.
Where does the earnings growth of Firstsource Solutions Limited (FSL) come from?
Earnings per share at Firstsource Solutions Limited grew +9.6 % a year from 2015 to 2026. Broken into its drivers: revenue per share +10.3 %, EBIT margin +2.2 %, tax rate −1.2 %, residual (interest, one-offs) −1.6 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Firstsource Solutions Limited
How large is the market capitalisation of Firstsource Solutions Limited (FSL)?
The market capitalisation of Firstsource Solutions Limited is ₹183B (≈ $1.9B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Firstsource Solutions Limited (FSL)?
The price-to-sales ratio of Firstsource Solutions Limited is 1.91 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Firstsource Solutions Limited (FSL)?
Earnings per share at Firstsource Solutions Limited are ₹9.56 (price ÷ EPS = P/E 27.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Firstsource Solutions Limited (FSL)?
The dividend yield of Firstsource Solutions Limited is 2.3% (payout 61.7%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Firstsource Solutions Limited (FSL)?
The net margin of Firstsource Solutions Limited is 7.1% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Firstsource Solutions Limited (FSL)?
The return on equity (ROE) of Firstsource Solutions Limited is 15.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Firstsource Solutions Limited (FSL)?
On an EBIT basis the return on assets of Firstsource Solutions Limited is 11.7% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Firstsource Solutions Limited (FSL)?
The operating margin of Firstsource Solutions Limited is 12.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Firstsource Solutions Limited (FSL)?
Revenue at Firstsource Solutions Limited is growing +19.5% versus a year earlier (3y avg +16.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Firstsource Solutions Limited (FSL)?
Earnings per share at Firstsource Solutions Limited are growing +27.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Firstsource Solutions Limited (FSL) carry?
The net debt of Firstsource Solutions Limited is ₹26.5B (fiscal year 2026, ≈ 3.1 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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