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Firstsource SolutionsNSE:FSL +0.32%82 Debt-to-EBITDA is 1.70 as of Mar. 2026, which is 5% below its 10-year median of 1.79. GuruFocus rates NSE:FSL with a GF Score™ of 82/100 and a GF Value™ of ₹377.00 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,722 Software companies, Firstsource Solutions ranks worse than 63.7% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Firstsource Solutions's Debt-to-EBITDA or its related term are showing as below:
NSE:FSL'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.03 Med: 1.79 Max: 2.19
Current: 1.99
During the past 13 years, the highest Debt-to-EBITDA Ratio of Firstsource Solutions was 2.19. The lowest was 1.03. And the median was 1.79.
NSE:FSL's Debt-to-EBITDA is ranked worse than 63.7% of 1722
companies
in the Software industry
Industry Median: 1.08
vs NSE:FSL: 1.99
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Firstsource Solutions Debt-to-EBITDA Related Terms
Firstsource Solutions Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Firstsource Solutions's Debt-to-EBITDA 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.
NSE:FSL vs IBM, ACN, FISV: Debt-to-EBITDA Comparison
For the Information Technology Services subindustry, Firstsource Solutions's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Firstsource Solutions's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Firstsource Solutions's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Firstsource Solutions (NSE:FSL) has a Debt-to-EBITDA of 1.70 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Firstsource Solutions. This is near median its historical median of 1.79. Over the past decade, Firstsource Solutions' Debt-to-EBITDA has ranged from 1.03 to 2.19. According to the industry distribution chart, Firstsource Solutions ranks #1097 out of 1722 companies in the Software industry, placing it in the top 63.7%.
Is Firstsource Solutions' Debt-to-EBITDA too high?
Firstsource Solutions' current Debt-to-EBITDA of 1.70 is near median its 10-year median of 1.79. Over the past 10 years, this metric has ranged from a low of 1.03 to a high of 2.19. The Software industry median Debt-to-EBITDA is 1.08. Firstsource Solutions' value of 1.70 is 57.4% above this industry median. Based on the distribution chart, Firstsource Solutions ranks #1097 out of 1722 companies in the Software industry, which is below the industry midpoint. Overall, Firstsource Solutions has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Firstsource Solutions' Debt-to-EBITDA compare to IBM and ACN?
According to the Software industry distribution chart, Firstsource Solutions ranks #1097 out of 1722 companies for Debt-to-EBITDA. This places Firstsource Solutions in the lower half of its industry. The industry median Debt-to-EBITDA is 1.08. Firstsource Solutions' value of 1.70 is 57.4% above this benchmark. Historically, Firstsource Solutions' own Debt-to-EBITDA has ranged from 1.03 to 2.19 over the past decade. While the company's 10-year median is 1.79 vs. the industry median of 1.08, 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 Debt-to-EBITDA for a Software company?
The median Debt-to-EBITDA among Software companies is 1.08, based on 1,722 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Firstsource Solutions's current Debt-to-EBITDA of 1.70 is 57.4% 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Firstsource Solutions. For the Software industry, the median Debt-to-EBITDA is 1.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Firstsource Solutions's current Debt-to-EBITDA is 1.70, which is near median its own 10-year median of 1.79. 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 Significantly Undervalued. The stock's GF Value™ is ₹377.00, compared to a current price of ₹263.06 — trading 30.2% below its estimated fair value. The current Debt-to-EBITDA is 1.70, which is near median its 10-year median of 1.79 and 57.4% above the Software industry median of 1.08. 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 Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Firstsource Solutions (NSE:FSL), the current Debt-to-EBITDA is 1.70 as of Mar. 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 ₹263.06 is trading 30.2% below its estimated GF Value™ of ₹377.00.
GuruFocus considers Firstsource Solutions to be Significantly Undervalued.
Key valuation signals for NSE:FSL:
Debt-to-EBITDA: 1.70 (near median its 10-year median of 1.79)
GF Value™: ₹377.00 vs. price of ₹263.06 (30.2% below fair value)
Industry Position: 57.4% above the Software median (#1097 of 1722)
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
Get the complete analysis for NSE:FSL
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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