Genpact Price to Sales vs. Cash per Share

G
 Stock
  

USD 43.12  0.46  1.08%   

For Genpact profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Genpact to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Genpact utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Genpact's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Genpact over time as well as its relative position and ranking within its peers. Please check Risk vs Return Analysis.
  
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The current year Price to Sales Ratio is expected to grow to 2.50, whereas Return on Sales is forecasted to decline to 0.12. As of June 30, 2022, Accumulated Other Comprehensive Income is expected to decline to about (598.1 M). In addition to that, Consolidated Income is expected to decline to about 343.7 M.

Genpact Revenues

3.69 Billion

Share
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
0.085
Market Capitalization
7.8 B
Quarterly Revenue Growth YOY
0.13
Return On Assets
0.0659
Return On Equity
0.21
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.

Genpact Cash per Share vs. Price to Sales Fundamental Analysis

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.
Genpact is rated below average in price to sales category among related companies. It is rated below average in cash per share category among related companies fabricating about  2.48  of Cash per Share per Price to Sales. As of June 30, 2022, Free Cash Flow is expected to decline to about 517.4 M. 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.

Genpact Cash per Share vs. Price to Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Genpact 
P/S 
 = 
MV Per Share 
Revenue Per Share 
1.97 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Cash per Share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. It is used to determine a firm's liquidity and is a good indicator of the overall financial health of a company. Value investors often compare this ratio to the current stock quote, and if it exceeds the stock price they would invest in it.
Genpact 
Cash per Share 
 = 
Total Cash 
Average Shares 
4.89 X
Companies with high Cash per Share ratio will be considered as an attractive investment by most investors. In most industries if you can single out an equity instrument trading below its cash per share value, you have a bargain and should consider buying it. Finding the stocks traded below their cash value, therefore, can be a good starting point for investors using strategies based on fundamentals.

Genpact Cash per Share Comparison

Genpact is currently under evaluation in cash per share category among related companies.

Genpact Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Genpact, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Genpact will eventually generate negative long term returns. The profitability progress is the general direction of Genpact's change in net profit over the period of time. It can combine multiple indicators of Genpact, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-554.4 M-598.1 M
Consolidated Income369.4 M343.7 M
Net Income369.4 M342.9 M
Net Income Common Stock369.4 M342.9 M
Net Income to Non Controlling Interests-684.9 K-702.9 K
Operating Income509 M468.7 M
Income Tax Expense113.7 M104.2 M
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 109600 people.

Genpact Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Genpact. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Genpact position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Genpact's important profitability drivers and their relationship over time.

Use Genpact in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Genpact position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Genpact will appreciate offsetting losses from the drop in the long position's value.

Genpact Pair Trading

Genpact Pair Trading Analysis

The ability to find closely correlated positions to Genpact could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Genpact when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Genpact - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Genpact to buy it.
The correlation of Genpact is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Genpact moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Genpact moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Genpact can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Genpact position

In addition to having Genpact in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Money Market Thematic Idea Now

Money Market
Money Market Theme
Funds or Etfs investing in various types of short-term (less than one year) fixed income instruments of high-quality and liquidity. The Money Market theme has 40 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Money Market Theme or any other thematic opportunities.
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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When running Genpact price analysis, check to measure Genpact's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Genpact is operating at the current time. Most of Genpact's value examination focuses on studying past and present price action to predict the probability of Genpact's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Genpact's price. Additionally, you may evaluate how the addition of Genpact to your portfolios can decrease your overall portfolio volatility.
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To fully project Genpact's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Genpact at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Genpact's income statement, its balance sheet, and the statement of cash flows.
Potential Genpact investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Genpact investors may work on each financial statement separately, they are all related. The changes in Genpact's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Genpact's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.