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Firstsource SolutionsNSE:FSL +0.35%82 Return-on-Tangible-Asset is 16.69% as of Mar. 2026, which is 10% below its 10-year median of 18.49. GuruFocus rates NSE:FSL with a GF Score™ of 82/100 and a GF Value™ of ₹374.64 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,886 Software companies, Firstsource Solutions ranks better than 86.38% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Firstsource Solutions's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹8,210 Mil. Firstsource Solutions's average total tangible assets for the quarter that ended in Mar. 2026 was ₹49,194 Mil. Therefore, Firstsource Solutions's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 16.69%.
The historical rank and industry rank for Firstsource Solutions's Return-on-Tangible-Asset or its related term are showing as below:
NSE:FSL'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 14.81 Med: 18.49 Max: 25.43
Current: 15.05
During the past 13 years, Firstsource Solutions's highest Return-on-Tangible-Asset was 25.43%. The lowest was 14.81%. And the median was 18.49%.
NSE:FSL's Return-on-Tangible-Asset is ranked better than 86.38% of 2886
companies
in the Software industry
Industry Median: 2.055
vs NSE:FSL: 15.05
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Firstsource Solutions Return-on-Tangible-Asset Related Terms
Firstsource Solutions Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Firstsource Solutions's Return-on-Tangible-Asset 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: Return-on-Tangible-Asset Comparison
For the Information Technology Services subindustry, Firstsource Solutions's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, Firstsource Solutions's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Firstsource Solutions's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 16.69% mean?
Firstsource Solutions (NSE:FSL) has a Return-on-Tangible-Asset of 16.69% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Firstsource Solutions and its competitors. This is 10% below median its historical median of 18.49. Over the past decade, Firstsource Solutions' Return-on-Tangible-Asset has ranged from 14.81 to 25.43. According to the industry distribution chart, Firstsource Solutions ranks #393 out of 2886 companies in the Software industry, placing it in the top 13.6%.
Is Firstsource Solutions' Return-on-Tangible-Asset too high?
Firstsource Solutions' current Return-on-Tangible-Asset of 16.69% is 10% below median its 10-year median of 18.49. Over the past 10 years, this metric has ranged from a low of 14.81 to a high of 25.43. The Software industry median Return-on-Tangible-Asset is 2.06. Firstsource Solutions' value of 16.69% is 712.2% above this industry median. Based on the distribution chart, Firstsource Solutions ranks #393 out of 2886 companies in the Software industry, which is in the top quartile — a strong position 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' Return-on-Tangible-Asset compare to IBM and ACN?
According to the Software industry distribution chart, Firstsource Solutions ranks #393 out of 2886 companies for Return-on-Tangible-Asset. This places Firstsource Solutions in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.06. Firstsource Solutions' value of 16.69% is 712.2% above this benchmark. Historically, Firstsource Solutions' own Return-on-Tangible-Asset has ranged from 14.81 to 25.43 over the past decade. While the company's 10-year median is 18.49 vs. the industry median of 2.06, 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 Return-on-Tangible-Asset for a Software company?
The median Return-on-Tangible-Asset among Software companies is 2.06, based on 2,886 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Firstsource Solutions's current Return-on-Tangible-Asset of 16.69% is 712.2% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Firstsource Solutions and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Firstsource Solutions's current Return-on-Tangible-Asset is 16.69%, which is 10% below median its own 10-year median of 18.49. 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 ₹374.64, compared to a current price of ₹266.38 — trading 28.9% below its estimated fair value. The current Return-on-Tangible-Asset is 16.69%, which is 10% below median its 10-year median of 18.49 and 712.2% above the Software industry median of 2.06. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Firstsource Solutions (NSE:FSL), the current Return-on-Tangible-Asset is 16.69% 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 ₹266.38 is trading 28.9% below its estimated GF Value™ of ₹374.64.
GuruFocus considers Firstsource Solutions to be Modestly Undervalued.
Key valuation signals for NSE:FSL:
Return-on-Tangible-Asset: 16.69% (10% below median its 10-year median of 18.49)
GF Value™: ₹374.64 vs. price of ₹266.38 (28.9% below fair value)
Industry Position: 712.2% above the Software median (#393 of 2886)
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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