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Firstsource Solutions (NSE:FSL) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Firstsource Solutions Forward PE Ratio Related Terms
Firstsource Solutions Forward PE Ratio Historical Data
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The historical data trend for Firstsource Solutions's Forward PE 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 Forward PE Ratio Chart
Firstsource Solutions Annual Data
Trend
2025-03
2026-03
Forward PE Ratio
28.85
16.16
Firstsource Solutions Quarterly Data
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
31.39
28.85
34.09
32.54
25.44
16.16
NSE:FSL vs IBM, ACN, FISV: Forward PE Ratio Comparison
For the Information Technology Services subindustry, Firstsource Solutions's Forward PE Ratio, along with its competitors' market caps and Forward PE 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 Forward PE Ratio vs Software Industry
For the Software industry and Technology sector, Firstsource Solutions's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Firstsource Solutions's Forward PE Ratio falls into.
Firstsource Solutions Forward PE Ratio Calculation
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Firstsource Solutions (NSE:FSL) has a Forward PE Ratio of 19.72 as of Jul. 21, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Firstsource Solutions and its competitors. According to the industry distribution chart, Firstsource Solutions ranks #623 out of 1173 companies in the Software industry, placing it in the top 53.1%.
Is Firstsource Solutions' Forward PE Ratio too high?
Firstsource Solutions' current Forward PE Ratio is 19.72. The Software industry median Forward PE Ratio is 18.67. Firstsource Solutions' value of 19.72 is 5.6% above this industry median. Based on the distribution chart, Firstsource Solutions ranks #623 out of 1173 companies in the Software industry, which is below the industry midpoint. 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' Forward PE Ratio compare to IBM and ACN?
According to the Software industry distribution chart, Firstsource Solutions ranks #623 out of 1173 companies for Forward PE Ratio. This places Firstsource Solutions in the lower half of its industry. The industry median Forward PE Ratio is 18.67. Firstsource Solutions' value of 19.72 is 5.6% 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 Forward PE Ratio for a Software company?
The median Forward PE Ratio among Software companies is 18.67, based on 1,173 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Firstsource Solutions's current Forward PE Ratio of 19.72 is 5.6% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Firstsource Solutions and its competitors. For the Software industry, the median Forward PE Ratio is 18.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Firstsource Solutions's current Forward PE Ratio is 19.72. 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 ₹375.43, compared to a current price of ₹266.05 — trading 29.1% below its estimated fair value. The current Forward PE Ratio is 19.72 and 5.6% above the Software industry median of 18.67. 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 Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Firstsource Solutions (NSE:FSL), the current Forward PE Ratio is 19.72 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 ₹266.05 is trading 29.1% below its estimated GF Value™ of ₹375.43.
GuruFocus considers Firstsource Solutions to be Modestly Undervalued.
Key valuation signals for NSE:FSL:
Forward PE Ratio: 19.72
GF Value™: ₹375.43 vs. price of ₹266.05 (29.1% below fair value)
Industry Position: 5.6% above the Software median (#623 of 1173)
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
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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