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Firstsource SolutionsNSE:FSL +0.35%82 5-Year Yield-on-Cost % is 3.38 as of Jul. 18, 2026, which is 16% below its 10-year median of 4.02. 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 1,027 Software companies, Firstsource Solutions ranks better than 53.55% on this metric.
Firstsource Solutions's yield on cost for the quarter that ended in Mar. 2026 was 3.38.
The historical rank and industry rank for Firstsource Solutions's 5-Year Yield-on-Cost % or its related term are showing as below:
NSE:FSL'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.42 Med: 4.02 Max: 26.38
Current: 3.38
During the past 13 years, Firstsource Solutions's highest Yield on Cost was 26.38. The lowest was 1.42. And the median was 4.02.
NSE:FSL's 5-Year Yield-on-Cost % is ranked better than 53.55% of 1027
companies
in the Software industry
Industry Median: 3.05
vs NSE:FSL: 3.38
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Firstsource Solutions 5-Year Yield-on-Cost % Related Terms
NSE:FSL vs IBM, ACN, FISV: 5-Year Yield-on-Cost % Comparison
For the Information Technology Services subindustry, Firstsource Solutions's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Software Industry
For the Software industry and Technology sector, Firstsource Solutions's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Firstsource Solutions's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Firstsource Solutions (NSE:FSL) has a 5-Year Yield-on-Cost % of 3.38 as of Jul. 18, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Firstsource Solutions and its competitors. This is 16% below median its historical median of 4.02. Over the past decade, Firstsource Solutions' 5-Year Yield-on-Cost % has ranged from 1.42 to 26.38. According to the industry distribution chart, Firstsource Solutions ranks #477 out of 1027 companies in the Software industry, placing it in the top 46.4%.
Is Firstsource Solutions' 5-Year Yield-on-Cost % too high?
Firstsource Solutions' current 5-Year Yield-on-Cost % of 3.38 is 16% below median its 10-year median of 4.02. Over the past 10 years, this metric has ranged from a low of 1.42 to a high of 26.38. The Software industry median 5-Year Yield-on-Cost % is 3.05. Firstsource Solutions' value of 3.38 is 10.8% above this industry median. Based on the distribution chart, Firstsource Solutions ranks #477 out of 1027 companies in the Software industry, which is above 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' 5-Year Yield-on-Cost % compare to IBM and ACN?
According to the Software industry distribution chart, Firstsource Solutions ranks #477 out of 1027 companies for 5-Year Yield-on-Cost %. This puts Firstsource Solutions in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 3.05. Firstsource Solutions' value of 3.38 is 10.8% above this benchmark. Historically, Firstsource Solutions' own 5-Year Yield-on-Cost % has ranged from 1.42 to 26.38 over the past decade. While the company's 10-year median is 4.02 vs. the industry median of 3.05, 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 5-Year Yield-on-Cost % for a Software company?
The median 5-Year Yield-on-Cost % among Software companies is 3.05, based on 1,027 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Firstsource Solutions's current 5-Year Yield-on-Cost % of 3.38 is 10.8% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Firstsource Solutions and its competitors. For the Software industry, the median 5-Year Yield-on-Cost % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Firstsource Solutions's current 5-Year Yield-on-Cost % is 3.38, which is 16% below median its own 10-year median of 4.02. 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 5-Year Yield-on-Cost % is 3.38, which is 16% below median its 10-year median of 4.02 and 10.8% above the Software industry median of 3.05. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Firstsource Solutions (NSE:FSL), the current 5-Year Yield-on-Cost % is 3.38 as of Jul. 18, 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:
5-Year Yield-on-Cost %: 3.38 (16% below median its 10-year median of 4.02)
GF Value™: ₹374.64 vs. price of ₹266.38 (28.9% below fair value)
Industry Position: 10.8% above the Software median (#477 of 1027)
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
5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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