Firstsource SolutionsNSE:FSL +6.90%85 3-Year ROIIC % is 9.43 as of Mar. 2026, which is 2% below its 10-year median of 9.66. GuruFocus rates NSE:FSL with a GF Score™ of 85/100 and a GF Value™ of ₹374.03 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,625 Software companies, Firstsource Solutions ranks better than 56.84% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Firstsource Solutions's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was 9.43%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Firstsource Solutions's 3-Year ROIIC % or its related term are showing as below:
NSE:FSL's 3-Year ROIIC % is ranked better than 56.84% of 2625
companies
in the Software industry
Industry Median: 5.24
vs NSE:FSL: 9.43
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Firstsource Solutions 3-Year ROIIC % Related Terms
Firstsource Solutions 3-Year ROIIC % Historical Data
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The historical data trend for Firstsource Solutions's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Information Technology Services subindustry, Firstsource Solutions's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Software Industry
For the Software industry and Technology sector, Firstsource Solutions's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Firstsource Solutions's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Firstsource Solutions (NSE:FSL) has a 3-Year ROIIC % of 9.43 as of Mar. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Firstsource Solutions and its competitors. This is near median its historical median of 9.66. According to the industry distribution chart, Firstsource Solutions ranks #1133 out of 2625 companies in the Software industry, placing it in the top 43.2%.
Is Firstsource Solutions' 3-Year ROIIC % too high?
Firstsource Solutions' current 3-Year ROIIC % of 9.43 is near median its 10-year median of 9.66. The Software industry median 3-Year ROIIC % is 5.24. Firstsource Solutions' value of 9.43 is 80% above this industry median. Based on the distribution chart, Firstsource Solutions ranks #1133 out of 2625 companies in the Software industry, which is above the industry midpoint. Overall, Firstsource Solutions has a GF Score™ of 85/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Firstsource Solutions' 3-Year ROIIC % compare to IBM and ACN?
According to the Software industry distribution chart, Firstsource Solutions ranks #1133 out of 2625 companies for 3-Year ROIIC %. This puts Firstsource Solutions in the upper half of its industry. The industry median 3-Year ROIIC % is 5.24. Firstsource Solutions' value of 9.43 is 80% above this benchmark. While the company's 10-year median is 9.66 vs. the industry median of 5.24, 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 3-Year ROIIC % for a Software company?
The median 3-Year ROIIC % among Software companies is 5.24, based on 2,625 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Firstsource Solutions's current 3-Year ROIIC % of 9.43 is 80% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Firstsource Solutions and its competitors. For the Software industry, the median 3-Year ROIIC % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Firstsource Solutions's current 3-Year ROIIC % is 9.43, which is near median its own 10-year median of 9.66. 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 ₹374.03, compared to a current price of ₹259.71 — trading 30.6% below its estimated fair value. The current 3-Year ROIIC % is 9.43, which is near median its 10-year median of 9.66 and 80% above the Software industry median of 5.24. Firstsource Solutions' overall GF Score™ is 85/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Firstsource Solutions (NSE:FSL), the current 3-Year ROIIC % is 9.43 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 ₹259.71 is trading 30.6% below its estimated GF Value™ of ₹374.03.
GuruFocus considers Firstsource Solutions to be Significantly Undervalued.
Key valuation signals for NSE:FSL:
3-Year ROIIC %: 9.43 (near median its 10-year median of 9.66)
GF Value™: ₹374.03 vs. price of ₹259.71 (30.6% below fair value)
Industry Position: 80% above the Software median (#1133 of 2625)
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.
85GF Score
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