Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Firstsource Solutions Limited (FSL.BO)

Company Dividend Discount ModelIndustry: Information Technology ServicesSector: Technology

Valuation Snapshot

Stable Growth$333.95 - $1,887.38$632.37
Multi-Stage$196.04 - $214.24$204.97
Blended Fair Value$418.67
Current Price$328.80
Upside27.33%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-6.02%0.00%3.913.413.383.382.895.331.760.000.000.00
YoY Growth--14.66%0.90%0.02%16.99%-45.84%202.82%0.00%0.00%0.00%0.00%
Dividend Yield--1.04%1.59%2.65%3.28%1.54%14.93%3.46%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)6,698.36
(-) Cash Dividends Paid (M)2,758.57
(=) Cash Retained (M)3,939.79
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,339.67837.30502.38
Cash Retained (M)3,939.793,939.793,939.79
(-) Cash Required (M)-1,339.67-837.30-502.38
(=) Excess Retained (M)2,600.123,102.503,437.41
(/) Shares Outstanding (M)705.81705.81705.81
(=) Excess Retained per Share3.684.404.87
LTM Dividend per Share3.913.913.91
(+) Excess Retained per Share3.684.404.87
(=) Adjusted Dividend7.598.308.78
WACC / Discount Rate7.90%7.90%7.90%
Growth Rate5.50%6.50%7.50%
Fair Value$333.95$632.37$1,887.38
Upside / Downside1.57%92.33%474.02%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)6,698.367,133.757,597.458,091.288,617.219,177.339,452.65
Payout Ratio41.18%50.95%60.71%70.47%80.24%90.00%92.50%
Projected Dividends (M)2,758.573,634.384,612.385,702.186,914.168,259.608,743.70

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.90%7.90%7.90%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)3,336.703,368.333,399.96
Year 2 PV (M)3,887.773,961.824,036.57
Year 3 PV (M)4,412.694,539.364,668.43
Year 4 PV (M)4,912.345,101.265,295.57
Year 5 PV (M)5,387.615,647.835,918.02
PV of Terminal Value (M)116,431.01122,054.67127,893.56
Equity Value (M)138,368.12144,673.27151,212.10
Shares Outstanding (M)705.81705.81705.81
Fair Value$196.04$204.97$214.24
Upside / Downside-40.38%-37.66%-34.84%

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