Genpact Stock Valuation

G
 Stock
  

USD 47.63  0.34  0.72%   

What is the value of Genpact today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Genpact, is its stock price multiplied by the total number of shares outstanding, calculating Genpact's enterprise value requires a different approach. It uses Genpact's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
As of August 10, 2022, Free Cash Flow is expected to decline to about 517.4 M. In addition to that, Enterprise Value is expected to decline to about 9.4 B.
Genpact retains a regular Real Value of $55.34 per share. The prevalent price of the firm is $47.63. At this time, the firm appears to be undervalued. Our model calculates the value of Genpact from evaluating the firm fundamentals such as Return On Asset of 6.59 %, current valuation of 10.26 B, and Return On Equity of 20.81 % as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage purchasing undervalued assets and exiting overvalued assets since, at some point, asset prices and their ongoing real values will come together.
  
Genpact Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Genpact's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Genpact Most Recent Valuation Data

Price Book
4.96
EPS Estimate Next Quarter
0.68
Address
Canon's, Court, Hamilton, Bermuda, HM 12
Price Sales
2.03
Forward Annual Dividend Yield
0.0107
EBITDA
632.9 M
Dividend Share
0.22
Undervalued
Today 47.63
Please note that Genpact's price fluctuation is very steady at this time. Calculation of the real value of Genpact is based on 3 months time horizon. Increasing Genpact's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Genpact is useful when determining the fair value of the Genpact stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Genpact. Since Genpact is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Genpact Stock. However, Genpact's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
55.34
Real Value
56.94
Upside
Estimating the potential upside or downside of Genpact helps investors to forecast how Genpact stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Genpact more accurately as focusing exclusively on Genpact's fundamentals will not take into account other important factors:
Earnings
Estimates (5)
LowProjected EPSHigh
2.092.112.13
Details
Hype
Prediction
LowEstimated ValueHigh
45.6847.2848.88
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.290.290.29
Details
8 Analysts
Consensus
LowTarget PriceHigh
45.0056.4362.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Genpact's intrinsic value based on its ongoing forecasts of Genpact's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Genpact's closest peers. When choosing an evaluation method for Genpact, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Genpact Investments

772,200

Genpact Valuation Drivers Correlation

Many accounts on the financial statements of Genpact are highly interrelated and sometimes correlated. Consequently, when conducting Genpact's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Genpact
Click cells to compare fundamentals

Genpact Valuation Trend

Knowing Genpact's actual value is paramount for traders to make sound investment determinations. Genpact's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Genpact's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Genpact's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Genpact Market Cap

Genpact is one of the top stocks in market capitalization category among related companies. Market capitalization of Information Technology Services industry is currently estimated at about 1.25 Trillion. Genpact maintains roughly 8.82 Billion in market capitalization contributing less than 1% to equities under Information Technology Services industry.
Capitalization  Valuation  Total debt  Revenue  Workforce

Genpact Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Genpact's current stock value. Our valuation model uses many indicators to compare Genpact value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Genpact competition to find correlations between indicators driving Genpact's intrinsic value. More Info.
Genpact is one of the top stocks in price to earning category among related companies. It is one of the top stocks in five year return category among related companies reporting about  0.04  of Five Year Return per Price to Earning. The ratio of Price to Earning to Five Year Return for Genpact is roughly  27.78 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Genpact by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Genpact's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Genpact's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Genpact's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Genpact and how it compares across the competition.

About Genpact Valuation

The equity valuation mechanism determines the current worth of Genpact on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Genpact. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Genpact based exclusively on its fundamental and basic technical indicators. By analyzing Genpact's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Genpact's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Genpact. We calculate exposure to Genpact's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Genpact's related companies.
Fiscal Year End
December
Industry
Information Technology Services
Concentration
Data Processing & Outsourced Services
Full Time Employees
109.6 K
Service Category
IT Services
Employer Id Number
98-0533350
Last ReportedProjected for 2022
Gross Profit1.4 B1.3 B
Profit Margin 0.09  0.09 
Genpact Limited provides business process outsourcing and information technology services in India, rest of Asia, North and Latin America, and Europe. The company was founded in 1997 and is based in Hamilton, Bermuda. Genpact operates under Information Technology Services classification in the United States and is traded on New York Stock Exchange. It employs 115300 people.

Genpact Quarterly Enterprise Value

9.12 Billion

Genpact's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Genpact's value is low or high relative to the company's performance and growth projections. Determining the market value of Genpact can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Genpact represents a small ownership stake in the entity. As a stockholder of Genpact, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Genpact Dividends Analysis For Valuation

Genpact Dividends per Basic Common Share is projected to slightly decrease based on the last few years of reporting. The past year's Dividends per Basic Common Share was at 0.43. As of August 10, 2022, Accumulated Retained Earnings Deficit is expected to decline to about 674.2 M. In addition to that, Earning Before Interest and Taxes EBIT is expected to decline to about 489.4 M
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-80.5 M-86.8 M
Dividend Yield 0.008  0.008211 
Dividends per Basic Common Share 0.43  0.51 
There are various types of dividends Genpact can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Genpact shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Genpact directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Genpact pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Genpact by the value of the dividends paid out.

Genpact Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Genpact does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio1.33
Earnings Quarterly Growth5.40%
Revenue Growth12.90%
Payout Ratio22.95%
Enterprise Value To Ebitda15.38
Earnings Growth8.50%
Enterprise Value To Revenue2.47

Genpact Current Valuation Indicators

Valuation refers to the process of determining the present value of Genpact and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Genpact we look at many different elements of the entity such as Genpact's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Genpact's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Genpact's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Genpact, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Genpact's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Genpact's worth.
Please check Risk vs Return Analysis. Note that the Genpact information on this page should be used as a complementary analysis to other Genpact's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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Is Genpact's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Genpact. If investors know Genpact will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Genpact listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.28
Market Capitalization
8.6 B
Quarterly Revenue Growth YOY
0.1
Return On Assets
0.0646
Return On Equity
0.19
The market value of Genpact is measured differently than its book value, which is the value of Genpact that is recorded on the company's balance sheet. Investors also form their own opinion of Genpact's value that differs from its market value or its book value, called intrinsic value, which is Genpact's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Genpact's market value can be influenced by many factors that don't directly affect Genpact's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Genpact's value and its price as these two are different measures arrived at by different means. Investors typically determine Genpact value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Genpact's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.