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Firstsource SolutionsNSE:FSL +0.10%82 Cyclically Adjusted PB Ratio is 4.93 as of Jul. 21, 2026, which is 40% above its 10-year median of 3.51. GuruFocus rates NSE:FSL with a GF Score™ of 82/100 and a GF Value™ of ₹375.55 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,595 Software companies, Firstsource Solutions ranks worse than 75.67% on this metric.
The historical rank and industry rank for Firstsource Solutions's Cyclically Adjusted PB Ratio or its related term are showing as below:
NSE:FSL'
s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 0.65 Med: 3.51 Max: 7.68
Current: 4.93
During the past years, Firstsource Solutions's highest Cyclically Adjusted PB Ratio was 7.68. The lowest was 0.65. And the median was 3.51.
NSE:FSL's Cyclically Adjusted PB Ratio is ranked worse than 75.67% of 1595
companies
in the Software industry
Industry Median: 2.26
vs NSE:FSL: 4.93
The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.
Firstsource Solutions's adjusted book value per share data for the three months ended in Mar. 2026 was ₹63.511. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is ₹54.13 for the trailing ten years ended in Mar. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Firstsource Solutions (NSE:FSL) Cyclically Adjusted PB Ratio Explanation
Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.
Firstsource Solutions Cyclically Adjusted PB Ratio Related Terms
Firstsource Solutions Cyclically Adjusted PB Ratio Historical Data
* Premium members only.
The historical data trend for Firstsource Solutions's Cyclically Adjusted PB Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Firstsource Solutions Cyclically Adjusted PB Ratio Chart
NSE:FSL vs IBM, ACN, FISV: Cyclically Adjusted PB Ratio Comparison
For the Information Technology Services subindustry, Firstsource Solutions's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Firstsource Solutions Cyclically Adjusted PB Ratio vs Software Industry
For the Software industry and Technology sector, Firstsource Solutions's Cyclically Adjusted PB Ratio distribution charts can be found below:
* The bar in red indicates where Firstsource Solutions's Cyclically Adjusted PB Ratio falls into.
Firstsource Solutions Cyclically Adjusted PB Ratio Calculation
Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
What does a Cyclically Adjusted PB Ratio of 4.93 mean?
Firstsource Solutions (NSE:FSL) has a Cyclically Adjusted PB Ratio of 4.93 as of Jul. 21, 2026. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Firstsource Solutions and its competitors. This is 40% above median its historical median of 3.51. Over the past decade, Firstsource Solutions' Cyclically Adjusted PB Ratio has ranged from 0.65 to 7.68. According to the industry distribution chart, Firstsource Solutions ranks #1207 out of 1595 companies in the Software industry, placing it in the top 75.7%.
Is Firstsource Solutions' Cyclically Adjusted PB Ratio too high?
Firstsource Solutions' current Cyclically Adjusted PB Ratio of 4.93 is 40% above median its 10-year median of 3.51. Over the past 10 years, this metric has ranged from a low of 0.65 to a high of 7.68. The Software industry median Cyclically Adjusted PB Ratio is 2.26. Firstsource Solutions' value of 4.93 is 118.1% above this industry median. Based on the distribution chart, Firstsource Solutions ranks #1207 out of 1595 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Firstsource Solutions has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Firstsource Solutions' Cyclically Adjusted PB Ratio compare to IBM and ACN?
According to the Software industry distribution chart, Firstsource Solutions ranks #1207 out of 1595 companies for Cyclically Adjusted PB Ratio. This places Firstsource Solutions in the lower half of its industry. The industry median Cyclically Adjusted PB Ratio is 2.26. Firstsource Solutions' value of 4.93 is 118.1% above this benchmark. Historically, Firstsource Solutions' own Cyclically Adjusted PB Ratio has ranged from 0.65 to 7.68 over the past decade. While the company's 10-year median is 3.51 vs. the industry median of 2.26, Firstsource Solutions has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cyclically Adjusted PB Ratio for a Software company?
The median Cyclically Adjusted PB Ratio among Software companies is 2.26, based on 1,595 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Firstsource Solutions's current Cyclically Adjusted PB Ratio of 4.93 is 118.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cyclically Adjusted PB Ratio mean?
A high Cyclically Adjusted PB Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Firstsource Solutions and its competitors. For the Software industry, the median Cyclically Adjusted PB Ratio is 2.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Firstsource Solutions's current Cyclically Adjusted PB Ratio is 4.93, which is 40% above median its own 10-year median of 3.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Firstsource Solutions stock overvalued right now?
Based on GuruFocus' analysis, Firstsource Solutions (NSE:FSL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹375.55, compared to a current price of ₹266.65 — trading 29% below its estimated fair value. The current Cyclically Adjusted PB Ratio is 4.93, which is 40% above median its 10-year median of 3.51 and 118.1% above the Software industry median of 2.26. Firstsource Solutions' overall GF Score™ is 82/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PB Ratio calculated?
Cyclically Adjusted PB Ratio is calculated from a company's financial statements. For Firstsource Solutions (NSE:FSL), the current Cyclically Adjusted PB Ratio is 4.93 as of Jul. 21, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Firstsource Solutions (NSE:FSL) Overvalued in 2026?
Based on GuruFocus' analysis, Firstsource Solutions stock appears to be undervalued.
The current stock price of ₹266.65 is trading 29% below its estimated GF Value™ of ₹375.55.
GuruFocus considers Firstsource Solutions to be Modestly Undervalued.
Key valuation signals for NSE:FSL:
Cyclically Adjusted PB Ratio: 4.93 (40% above median its 10-year median of 3.51)
GF Value™: ₹375.55 vs. price of ₹266.65 (29% below fair value)
Industry Position: 118.1% above the Software median (#1207 of 1595)
No single metric tells the full story. See the NSE:FSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Firstsource Solutions Ltd is engaged in the business of providing customer management services like contact centers, transaction processing, and debt collection services. The company's business segment includes Banking and Financial Services, Healthcare, Communication, Media and Technology, and Diverse Industries. It generates maximum revenue from the Banking and Financial Services segment. Geographically, it derives a majority of its revenue from the United States of America.
82GF Score
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