FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Firstsource Solutions FCF Yield % Related Terms
Firstsource Solutions FCF Yield % Historical Data
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The historical data trend for Firstsource Solutions's FCF Yield % 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.
For the Information Technology Services subindustry, Firstsource Solutions's FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Software Industry
For the Software industry and Technology sector, Firstsource Solutions's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Firstsource Solutions's FCF Yield % 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.
Firstsource Solutions (NSE:FSL) has a FCF Yield % of 6.06 as of Jun. 27, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Firstsource Solutions and its competitors. According to the industry distribution chart, Firstsource Solutions ranks #801 out of 2868 companies in the Software industry, placing it in the top 27.9%.
Is Firstsource Solutions' FCF Yield % too high?
Firstsource Solutions' current FCF Yield % is 6.06. The Software industry median FCF Yield % is 0.89. Firstsource Solutions' value of 6.06 is 584.7% above this industry median. Based on the distribution chart, Firstsource Solutions ranks #801 out of 2868 companies in the Software industry, which is above the industry midpoint. Overall, Firstsource Solutions has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Firstsource Solutions' FCF Yield % compare to IBM and ACN?
According to the Software industry distribution chart, Firstsource Solutions ranks #801 out of 2868 companies for FCF Yield %. This puts Firstsource Solutions in the upper half of its industry. The industry median FCF Yield % is 0.89. Firstsource Solutions' value of 6.06 is 584.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Yield % for a Software company?
The median FCF Yield % among Software companies is 0.89, based on 2,868 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Firstsource Solutions's current FCF Yield % of 6.06 is 584.7% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Firstsource Solutions and its competitors. For the Software industry, the median FCF Yield % is 0.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Firstsource Solutions's current FCF Yield % is 6.06. 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 ₹370.94, compared to a current price of ₹243.45 — trading 34.4% below its estimated fair value. The current FCF Yield % is 6.06 and 584.7% above the Software industry median of 0.89. Firstsource Solutions' overall GF Score™ is 81/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Firstsource Solutions (NSE:FSL), the current FCF Yield % is 6.06 as of Jun. 27, 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 ₹243.45 is trading 34.4% below its estimated GF Value™ of ₹370.94.
GuruFocus considers Firstsource Solutions to be Significantly Undervalued.
Key valuation signals for NSE:FSL:
FCF Yield %: 6.06
GF Value™: ₹370.94 vs. price of ₹243.45 (34.4% below fair value)
Industry Position: 584.7% above the Software median (#801 of 2868)
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.
81GF Score
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