Newgen Software Technologies Limited (NEWGEN) fair value: what the stock is really worth
As of Oct 1, 2026: fair value of Newgen Software Technologies Limited ₹527, price ₹456, upside +15.4%, quality 62 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 Oct 1, 2026.
How to read this chart
60‑month range ₹159.19 – ₹1,747 · fair‑value band ₹281.84 – ₹673.15 · the ₹456.35 price screens below the ₹526.50 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 1, 2026.
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Newgen Software Technologies Limited, a software company, engages in the business of software product development in India, Europe, the Middle East, Africa, the Asia Pacific, Australia, and the United States. It designs and delivers end-to-end software solutions, including workflow automation, document management, and imaging.
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Newgen Software Technologies Limited, a software company, engages in the business of software product development in India, Europe, the Middle East, Africa, the Asia Pacific, Australia, and the United States. It designs and delivers end-to-end software solutions, including workflow automation, document management, and imaging. The company also offers the NewgenONE platform comprising NewgenONE AI platform, Agentic AI, AI and data science, intelligent process automation, content services platform, omnichannel customer engagement, and low code application development, as well as integration ecosystem. Its NewgenONE platform includes enterprise content management, records management, document management, intelligent document processing, case management, document generation, hyper automation, rapid application development, business process management, digital process automation, workflow management, and customer communication management. It serves financial institutions, insurance, government, healthcare, energy and utilities, and other industries. Newgen Software Technologies Limited was incorporated in 1992 and is based in New Delhi, India.
Stock analysis
Newgen Software Technologies Limited (NEWGEN) currently trades at ₹456.35, while our model-based Fair Value estimate is ₹526.50, implying the stock looks roughly 13.3% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of ₹609.83 per share, and 12 of the 26 models we run sit above the ₹456.35 price.
Bear case: the Dividend Discount group reads lowest at ₹64.16, and 14 of the 26 models stay below the price. Evidence for this calculation is high.
Scenario range: ₹281.84 (bear) to ₹673.15 (bull), the price of ₹456.35 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 62/100 (solid quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Newgen Software Technologies Limited reported revenue of ₹15.7B in FY2026 versus ₹7.8B in FY2022, a compound +19.2%/yr. Reported net income was ₹3.0B in FY2026, compounding +16.3%/yr from FY2022.
Key figures
Market cap ₹64.6B (≈ $671M) · P/E ratio 20.6 · P/S ratio 3.93 · EPS (TTM) ₹22.18 · Dividend yield 1.3% · Net margin 19.1% · Return on equity 18.3% · Return on assets (EBIT) 30.0%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 54% below its 52-week high and 13% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at −23% fair-value upside, at 15%, NEWGEN screens cheaper than that median.
Fair Value models
Bear ₹281.84Fair Value ₹526.50Bull ₹673.15
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 (₹8.20 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.100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+5.9%
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.
+17.4%
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.
+18.5%
Start year 2021 (pandemic). Over 10 years: +16.3% a year
Revenue growth 13 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.
+17.1%
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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.
+19.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year+18.5%
Dividend (yield on the price)1.3%
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.18.5% vs 20.4%, steady
Start year 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes about as much growth as 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).
+16.8%
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.
+11.3%
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 +12.2% a year for the price and +6.9% for the forecasts.
Compare Newgen Software Technologies Limited with another stock
Price, fair value, quality and upside side by side.
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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.Software - Infrastructure · 339 stocks
Beats the industry median on 8/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score62 · Above median
Fair Value upside+15.4% · Above median
Profitability
Return on equity (TTM)18.3% · Top 25%
Return on assets10.5% · Top 25%
Net margin (TTM)19.5% · Top 25%
Operating margin (TTM)13.1% · Above median
Growth and dividend
Revenue growth11.2% · Below median
Dividend yield (TTM)1.3% · Below median
Valuation Multiplesvs Software - Infrastructure median · lower = cheaper
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Is Newgen Software Technologies Limited (NEWGEN) overvalued or undervalued?
As of Oct 1, 2026, our model estimates a fair value of ₹526.50 versus a price of ₹456.35, about +15% upside (undervalued).
What is the fair value of NEWGEN?
Our model-based fair value for Newgen Software Technologies Limited is ₹526.50 (as of Oct 1, 2026), built from audited fundamentals. The current price: ₹456.35.
What is the quality score of NEWGEN?
Newgen Software Technologies Limited has a Quality Score of 62/100. 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 Newgen Software Technologies Limited (NEWGEN)?
Our model-based price target is the fair value of ₹526.50 (as of Oct 1, 2026) from 26 valuation models. Cautious scenario ₹281.84, optimistic scenario ₹673.15. It is a calculation from audited fundamentals, not an analyst target.
What is the Newgen Software Technologies Limited stock forecast for 2026?
Our models put fair value at ₹526.50, about +15% upside versus a price of ₹456.35 (undervalued). Cautious scenario ₹281.84, optimistic scenario ₹673.15. The calculation is refreshed regularly with new filings.
What is the revenue of Newgen Software Technologies Limited (NEWGEN)?
Newgen Software Technologies Limited reported trailing-twelve-month revenue of about ₹16.1B (latest available figure, as of Oct 1, 2026).
Does Newgen Software Technologies Limited pay a dividend?
Newgen Software Technologies Limited currently shows a dividend yield of about 1.31% relative to its recent price (as of Oct 1, 2026).
What growth is priced into Newgen Software Technologies Limited (NEWGEN)?
For today's price to be fair in a discounted-cash-flow model, Newgen Software Technologies Limited would have to grow free cash flow by +16.8 % 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 +18.5 % per year. As of Oct 1, 2026.
What discount rate (WACC) does the fair value of NEWGEN use?
Our models discount Newgen Software Technologies Limited at 12.4 %: a base by market capitalisation (small), damped by beta 0.53, 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 Newgen Software Technologies Limited that is +16.8 % 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 Newgen Software Technologies Limited (NEWGEN) delivered so far?
Over the past 5 years revenue at Newgen Software Technologies Limited grew +18.5 % a year. The price currently implies +16.8 % 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 Newgen Software Technologies Limited (NEWGEN) growing?
The median revenue growth in the sector is +9.6 % a year. That is the yardstick for the growth priced into Newgen Software Technologies Limited (+16.8 % 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 Newgen Software Technologies Limited (NEWGEN)?
The free-cash-flow yield on the price is 3.92 %: that much free cash flow Newgen Software Technologies 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 Newgen Software Technologies Limited (NEWGEN)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Newgen Software Technologies Limited it is ₹526.50 per share (as of Oct 1, 2026), against a price of ₹456.35. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Newgen Software Technologies Limited stock overvalued or undervalued in 2026?
As of Oct 1, 2026, NEWGEN trades below its calculated fair value: price ₹456.35, fair value ₹526.50, a gap of about +15% (undervalued). 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 NEWGEN?
No. The price is what the market pays today (₹456.35); the fair value is what the company's own numbers justify (₹526.50). For Newgen Software Technologies Limited the two are ₹70.15 per share apart. That gap is exactly why we show both numbers side by side.
How much is Newgen Software Technologies Limited worth?
The market values Newgen Software Technologies Limited at about ₹64.6B (market capitalisation, as of Oct 1, 2026). Per share that is ₹456.35; our models calculate a fair value of ₹526.50 per share.
What do the bullish and bearish scenarios say about NEWGEN?
Our models span a range for Newgen Software Technologies Limited: cautious scenario ₹281.84, base ₹526.50, optimistic ₹673.15 per share (as of Oct 1, 2026, price ₹456.35). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of NEWGEN?
Newgen Software Technologies Limited trades at a price-to-earnings ratio of 20.6 (as of Oct 1, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹526.50 is built from several models across several years. Other multiples: P/B 3.6, P/S 4.0, EV/EBITDA 14.9.
How solid is the balance sheet of Newgen Software Technologies Limited (NEWGEN)?
Balance-sheet figures for Newgen Software Technologies Limited (as of Oct 1, 2026): return on equity 18.3%. They feed the Quality Score of 62/100, which measures business quality independently of the share price.
How far is NEWGEN from its 52-week high?
Newgen Software Technologies Limited trades at ₹456.35, about 54% below its 52-week high of ₹996.55 and 13% above the low of ₹402.30 (as of Oct 1, 2026). Distance from the high says nothing about value: that is what the fair value of ₹526.50 is for.
Which stocks are comparable to Newgen Software Technologies Limited?
From the same area (Technology) we also value Microsoft Corporation, Palantir Technologies Inc, Oracle Corporation, CrowdStrike Holdings, 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 Newgen Software Technologies Limited stock attractive at the current price?
The data as of Oct 1, 2026: price ₹456.35, calculated fair value ₹526.50 (+15%), Quality Score 62/100, 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 NEWGEN calculated?
We run Newgen Software Technologies 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 ₹526.50, 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 14.5 % above its aggregate fair value. Newgen Software Technologies Limited currently trades 13 % below its own fair value, and the market average says nothing about that. 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 Newgen Software Technologies Limited (NEWGEN)?
The closing price on Oct 1, 2026 was ₹456.35. Our model-based fair value is ₹526.50, about +15% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Newgen Software Technologies Limited right now?
A fairly wide model range (₹281.84 to ₹673.15) leaves room in how you read the outcome. The price sits in the lower half of our model range, the side with the larger margin of safety. The data supports the verdict: every model runs on fully documented inputs.
Where does the earnings growth of Newgen Software Technologies Limited (NEWGEN) come from?
Earnings per share at Newgen Software Technologies Limited grew +20.9 % a year from 2015 to 2026. Broken into its drivers: revenue per share +13.7 %, EBIT margin −1.6 %, tax rate +0.2 %, residual (interest, one-offs) +7.8 %. 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 Newgen Software Technologies Limited
How large is the market capitalisation of Newgen Software Technologies Limited (NEWGEN)?
The market capitalisation of Newgen Software Technologies Limited is ₹64.6B (≈ $671M). 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 Newgen Software Technologies Limited (NEWGEN)?
The price-to-sales ratio of Newgen Software Technologies Limited is 3.93 (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 Newgen Software Technologies Limited (NEWGEN)?
Earnings per share at Newgen Software Technologies Limited are ₹22.18 (price ÷ EPS = P/E 20.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Newgen Software Technologies Limited (NEWGEN)?
The dividend yield of Newgen Software Technologies Limited is 1.3% (payout 27.1%). 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 Newgen Software Technologies Limited (NEWGEN)?
The net margin of Newgen Software Technologies Limited is 19.1% (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 Newgen Software Technologies Limited (NEWGEN)?
The return on equity (ROE) of Newgen Software Technologies Limited is 18.3% (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 Newgen Software Technologies Limited (NEWGEN)?
On an EBIT basis the return on assets of Newgen Software Technologies Limited is 30.0% (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 Newgen Software Technologies Limited (NEWGEN)?
The operating margin of Newgen Software Technologies Limited is 13.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Newgen Software Technologies Limited (NEWGEN)?
Revenue at Newgen Software Technologies Limited is growing +11.2% versus a year earlier (3y avg +17.4%). 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 Newgen Software Technologies Limited (NEWGEN)?
Earnings per share at Newgen Software Technologies Limited are growing +27.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Newgen Software Technologies Limited (NEWGEN) hold?
Newgen Software Technologies Limited holds more cash than debt, ₹3.7B net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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