As of December 15, 2025, Genpact Ltd has a Discounted Cash Flow (DCF) derived fair value of $76.30 per share. With the current market price at $47.78, this represents a potential upside of 59.7%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $56.61 |
| DCF Fair Value (10-year) | $76.30 |
| Potential Upside (5-year) | 18.5% |
| Potential Upside (10-year) | 59.7% |
| Discount Rate (WACC) | 5.9% - 7.9% |
Revenue is projected to grow from $4767 million in 12-2024 to $9615 million by 12-2034, representing a compound annual growth rate of approximately 7.3%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 4767 | 6% |
| 12-2025 | 5120 | 7% |
| 12-2026 | 5479 | 7% |
| 12-2027 | 5873 | 7% |
| 12-2028 | 6397 | 9% |
| 12-2029 | 6955 | 9% |
| 12-2030 | 7503 | 8% |
| 12-2031 | 8205 | 9% |
| 12-2032 | 8615 | 5% |
| 12-2033 | 9016 | 5% |
| 12-2034 | 9615 | 7% |
Net profit margin is expected to improve from 11% in 12-2024 to 11% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | 514 | 11% |
| 12-2025 | 556 | 11% |
| 12-2026 | 595 | 11% |
| 12-2027 | 638 | 11% |
| 12-2028 | 694 | 11% |
| 12-2029 | 755 | 11% |
| 12-2030 | 815 | 11% |
| 12-2031 | 891 | 11% |
| 12-2032 | 935 | 11% |
| 12-2033 | 979 | 11% |
| 12-2034 | 1044 | 11% |
with a 5-year average of $67 million. Projected CapEx is expected to maintain at approximately 2% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 67 |
| 12-2026 | 73 |
| 12-2027 | 81 |
| 12-2028 | 90 |
| 12-2029 | 95 |
| 12-2030 | 102 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 90 |
| Days Inventory | 0 |
| Days Payables | 4 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 3M/2025 | 210 | 43 | 20 | 8 | 139 |
| 2026 | 902 | 183 | 87 | 119 | 513 |
| 2027 | 969 | 196 | 93 | 95 | 585 |
| 2028 | 1057 | 214 | 102 | 118 | 624 |
| 2029 | 1147 | 232 | 110 | 145 | 659 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 56.61 | 18.5% |
| 10-Year DCF (Growth) | 76.30 | 59.7% |
| 5-Year DCF (EBITDA) | 44.07 | -7.8% |
| 10-Year DCF (EBITDA) | 60.61 | 26.9% |
Is Genpact Ltd (G) a buy or a sell? Genpact Ltd is definitely a buy. Based on our DCF analysis, Genpact Ltd (G) appears to be significantly undervalued with upside potential of 59.7%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $47.78.