374.90 0.00 (0.00%)

112.71% Gain from 52W Low

1.8M NSE+BSE Volume

NSE 15 May, 2025 2:03 PM (IST)

Analyze undervaluation/ overvaluation of Firstsource Solutions Ltd. with current and 1 Year Forward PE

INSIGHT
Firstsource Solutions Ltd. is overvalued at current PE, but fairly valued on future earnings estimates
Right Now : Current PE vs 5 year Average PE
Overvalued
Fair price

Based on 5Yr Average PE

233.9
Upside

Current PE versus 5Yr Average PE

-37.61 %
1 Year Forward : 5 Yr Average PE & Projected 1Yr Forward EPS*
Overvalued
Fair price

Based on 1Yr Forward EPS

307.7
Upside

5 Yr Average PE & 1Yr Forward EPS

-17.93 %
Info: The Firstsource Solutions Ltd.'s current PE is 43.96 ,while its 5 year PE average is 27.4. Its forward PE based on analyst estimates is 33.4
Note: The forward P/E ratio (or forward price-to-earnings ratio) is calculated by dividing the current share price of a company by the estimated(1Yr) future (“forward”) earnings per share (EPS) of that company.
Choose Stock, Parameter and Date Range
Furthest date for non subscribers is 15-05-2023
generated report

Analyze undervaluation/ overvaluation of Firstsource Solutions Ltd. with historical PE and PBV ratios

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from 15 May, 2023 to 14 May, 2025

Standalone P/E

Sell Zone

76.4% into P/E buy sell zone

% time spent below current P/E
0 20 40 60 80 100
Strong upside potential
Gains already realized

Out of 496 days, Firstsource Solutions Ltd. traded 379 (76.4%) days below the current P/E of on Standalone basis.

Consolidated P/E

Strong Sell Zone

83.3% into P/E buy sell zone

% time spent below current P/E
0 20 40 60 80 100
Strong upside potential
Gains already realized

Out of 496 days, Firstsource Solutions Ltd. traded 413 (83.3%) days below the current P/E of on Consolidated basis.

Note: This is a reverse percentile score. Values close to 100% are bad while values close to 0% are good. Days when PE is negative are not considered in the analysis
P/E range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
17-18
37 7.5% 37 7.5%
18-19
28 5.6% 65 13.1%
19-21
54 10.9% 119 24.0%
21-25
59 11.9% 178 35.9%
25-28
91 18.3% 269 54.2%
28-39
Forward PE is 33.41
54 10.9% 323 65.1%
39-44
Current P/E is 44.0
90 18.1% 413 83.3%
44-47
42 8.5% 455 91.7%
47-53
41 8.3% 496 100.0%
Total 496 496
P/E range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
35-37
34 6.9% 34 6.9%
37-39
18 3.6% 52 10.5%
39-44
50 10.1% 102 20.6%
44-48
83 16.7% 185 37.3%
48-51
74 14.9% 259 52.2%
51-56
71 14.3% 330 66.5%
56-63
Current P/E is 61.2
74 14.9% 404 81.5%
63-68
48 9.7% 452 91.1%
68-77
44 8.9% 496 100.0%
Total 496 496

FAQ

  • What is the PE ratio?

    In its simplest definition, the price-to-earnings ratio (P/E ratio) represents the price an investor pays per rupee of a company's earnings.
    For example, if a company has a P/E ratio of 25, investors are willing to pay INR 25 for each rupee of the company's current earnings. This indicates that investors value the stock at 25 times its current earnings, with an expectation of future earnings growth.
    The P/E ratio fluctuates based on investor sentiment towards a company. Positive sentiment drives the stock price higher, resulting in a higher P/E ratio (investors pay more for each rupee of earnings). Conversely, negative sentiment lowers the P/E ratio (investors pay less for each rupee of earnings).
  • What is the PE buy/sell zone?

    The PE buy/sell zone is calculated based on how many days a stock has traded at its current PE level.
    To do this, we compare the current PE to the stock’s historical PE performance, to find out how often (for how many days in the past) the stock has traded at its current PE value.
    If the stock has usually traded above its current PE level (it’s at a higher PE for the majority of trading days), then the stock is cheaper than usual and in the PE buy zone.
    If the stock has usually traded below its current PE level (it’s at a lower PE for the majority of trading days), then the stock is more expensive than usual and in the PE sell zone.
  • How is the PE buy sell zone useful?

    The PE buy sell zone tells you if a stock’s current PE level is unusually high or low, and if a stock doesn’t typically trade at that level. It helps investors identify stocks that are undervalued or overvalued in terms of their typical PE trading behavior.
    Investors should keep in mind that the buy zone/sell zone is not a foolproof buy or sell signal. For example, the PE of a stock may have fallen substantially due to adverse events or negative news. Or the PE may have risen sharply after the company has won new orders, made an acquisition, announced a buyback, or some other positive event. PE Buy/Sell Zone signals should be looked at in conjunction with other information.
  • Why are the number of days different for Standalone and Consolidated data?

    This can be because of any of the 2 following reasons:
    1. Days when PE is negative are not considered in the analysis. So if only 1 of the Standalone or Consolidated PE is negative and the other is not, then the days will be different
    2. Companies have reported Consolidated data for limited period.