Firstsource Solutions Limited (FSL.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+364.8%

₹1,342.08

vs ₹288.75 price

Levered DCF

₹1,229.34

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

3.95

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	20.92×	38.73×	26.62×	13.97×	15.83×	21.45×	5.6×	8.84×
P/B	3.22×	5.76×	3.7×	2.13×	2.8×	2.77×	0.69×	1.23×
P/S	1.48×	2.96×	2.16×	1.2×	1.45×	1.54×	0.47×	0.88×
EV / EBITDA	11.44×	21.39×	15.16×	8.8×	10.61×	12.77×	4.82×	7.13×
Gross margin	11.7%	40.2%	40.2%	37.5%	35.0%	32.6%	44.8%	47.4%
Operating margin	11.7%	11.1%	11.6%	9.9%	12.5%	12.6%	11.6%	12.6%
Net margin	7.1%	7.5%	8.1%	8.6%	9.2%	7.2%	8.4%	10.0%
Current ratio	0.79×	0.92×	0.94×	0.9×	0.93×	0.88×	0.83×	0.94×
Debt / equity	0.67×	0.63×	0.41×	0.41×	0.59×	0.43×	0.5×	0.2×
Interest coverage	6.18×	4.83×	5.19×	5.39×	11.46×	7.26×	5.64×	10.4×
Dividend yield	2.7%	1.2%	1.8%	3.3%	2.8%	2.6%	19.8%	3.7%
Payout ratio	56.4%	46.4%	46.7%	46.4%	44.4%	56.3%	110.8%	32.9%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	15.4%	14.5%	13.9%	15.3%	17.7%	12.9%	12.3%	13.9%
Return on invested capital	11.4%	10.3%	11.1%	10.1%	12.0%	13.1%	9.6%	12.4%
Return on assets	7.2%	7.5%	8.5%	9.1%	9.4%	7.5%	7.4%	10.3%
Free cash flow yield	6.0%	1.9%	4.1%	10.3%	7.3%	10.3%	15.6%	8.3%
Earnings yield	4.8%	2.5%	3.8%	7.2%	6.3%	4.7%	17.9%	11.3%
Enterprise value	₹167.6B	₹260B	₹150.6B	₹84.2B	₹101.9B	₹88.2B	₹30.7B	₹38.4B
Net debt / EBITDA	1.81×	1.98×	1.37×	1.3×	1.76×	1.53×	1.84×	0.93×
Cash conversion cycle (days)	55	48	35	38	62	46	67	-67