Genpact Limited (G) DCF Valuation & Fundamental Primer
Genpact Limited (G) currently trades at $46.60 with an enterprise value of $8.56B. Our proprietary institutional model rates Genpact Limited at 63/100 (Grade: B · Mixed Fundamental Profile). The current market price prices in an implied 5-year revenue CAGR of 7.5% vs. historical growth of 6.5% (Fairly Priced to Fundamentals).
Institutional fundamental teardown of Genpact Limited (G) covering SEC 10-K/10-Q cash flow conversion, SBC dilution friction, and Reverse-DCF valuation hurdles.
Genpact Limited (G) 3-Scenario DCF Valuation Range
Stress-test G's 5-year growth, target FCF margin, WACC, terminal methodology, and SBC/dilution friction in real time.
Split between 5-Year Explicit Cash Flows and Discounted Terminal Value
2D Institutional Valuation Sensitivity Heatmap
Implied share price & upside/downside spread across 25 valuation states (Current Price: $46.60).
| WACC \ Terminal | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% |
|---|---|---|---|---|---|
| 8.5% | $49.73 +7% | $53.01 +14% | $56.85 +22% | $61.38 +32% | $66.82 +43% |
| 9.3% | $44.35 -5% | $46.94 +1% | $49.91 +7% | $53.36 +15% | $57.41 +23% |
| 10.0% | $39.92 -14% | $42.00 -10% | $44.36 -5% | $47.06 +1% | $50.17 +8% |
| 10.8% | $36.21 -22% | $37.92 -19% | $39.83 -15% | $41.98 -10% | $44.43 -5% |
| 11.5% | $33.07 -29% | $34.48 -26% | $36.05 -23% | $37.80 -19% | $39.77 -15% |
Institutional Software Quality Scorecard (63/100 · Grade B)
Viable recurring software business but carries notable dilution, lower margins, or higher leverage.
Solid cash generation with minor working capital absorption
Minimal dilution friction; management compensation aligned with shareholders
Sub-par gross margins; higher cost of delivery or hardware/services mix
Moderate leverage or cash burn; monitor liquidity runway
Core Investment Strengths & Moats
- Low dilution friction: SBC is only 0.0% of revenue
Key Operational & Dilution Risks
- Lower software gross margins (35.5%), indicating higher hosting or service delivery drag
Reverse-DCF Solver: What Growth is Priced Into G?
Market implies 7.5% annual revenue growth over next 5 years (7.5% dilution-adjusted), in line with company run-rate.
Headline Reverse-DCF ignores Stock-Based Compensation (0.0% of revenue) and annual share dilution (0.0%/yr). Accounting for both requires 7.5% 5-year revenue CAGR to justify $46.60/sh on a true per-share economic cash flow basis.
Genpact Limited (G) 5-Year Fundamental Forecast
| Statement Line Item | TTM Audited Base | TTM | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|---|---|
| Revenue | $4.77B | $4.77B | $5.08B | $5.40B | $5.75B | $6.13B | $6.52B |
| Gross Profit | $1.69B | $1.69B | $1.80B | $1.92B | $2.04B | $2.17B | $2.31B |
| Operating Income (EBIT) | $702.1M | $702.2M | $747.6M | $796.0M | $847.5M | $902.3M | $960.7M |
| Stock-Based Compensation (SBC) | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Unlevered Free Cash Flow (FCF) | $530.2M | $530.1M | $564.4M | $600.9M | $639.8M | $681.2M | $725.3M |
| SBC-Adjusted True Cash Flow | $530.2M | $530.1M | $564.4M | $600.9M | $639.8M | $681.2M | $725.3M |
Software & Cloud Services Peer Comparables & Rule of 40 Regression
Rule of 40 vs. EV / Revenue Multiple Regression
OLS Fit: EV/Rev = -7.7 + 0.39 × (Rule of 40) · R² = 68%Stocks below the gold regression line trade at a discount relative to their Rule of 40 compounding efficiency.
| Company | Ticker | Market Cap | TTM Revenue | Gross Margin | FCF Margin | Rule of 40 | SBC % Rev | EV / Rev |
|---|---|---|---|---|---|---|---|---|
| Genpact Limited | G | $8.15B | $4.77B | 35.5% | 11.1% | 17.6% | — | 1.9× |
| ServiceNow | NOW | $152.61B | $10.98B | 79.2% | 31.1% | 54.2% | 15.9% | 13.9× |
| Workday, Inc. | WDAY | $50.35B | $8.00B | 75.0% | 27.4% | 43.9% | 19.0% | 6.4× |
| Salesforce | CRM | $217.10B | $37.90B | 77.2% | 32.8% | 42.8% | 8.4% | 5.8× |
| Datadog | DDOG | $46.05B | $2.68B | 80.8% | 31.1% | 57.7% | 21.3% | 17.4× |
| Snowflake Inc. | SNOW | $71.79B | $3.63B | 66.5% | 25.2% | 57.7% | 40.8% | 20.0× |
| Hubspot | HUBS | $19.89B | $2.63B | 85.0% | 21.3% | 52.7% | 19.2% | 7.7× |
| Peer Cohort Median Benchmark (N=6) | 78.2% | 29.2% | 53.5% | 19.1% | 10.8× | |||
EV / Revenue Multiple Compression Stress Test
| Multiple Scenario | EV / Revenue | Implied Enterprise Value | Implied Equity Value | Implied Share Price | Delta vs Current |
|---|---|---|---|---|---|
| Current Multiple | 1.9× | $8.95B | $8.15B | $46.60 | 0.0% |
| -20% Multiple Compression | 1.5× | $7.16B | $6.36B | $36.37 | -20.0% |
| -35% Multiple Compression | 1.2× | $5.82B | $5.02B | $28.70 | -35.0% |
| Software Baseline Floor (5.0× EV/Rev) | 5.0× | $23.84B | $23.04B | $131.73 | +166.4% |
Frequently Asked Questions: Genpact Limited (G) Valuation
What is Genpact Limited (G)'s intrinsic DCF valuation and implied share price?
Based on audited SEC 10-K/10-Q filings and a 5-year 3-statement discounted cash flow (DCF) model, Genpact Limited (G) has a Base Case implied value of $44.39 per share (with a Bear Case of $23.08 and a Bull Case of $68.51), compared to its current price of $46.60. The model discounts projected free cash flows at a 10.0% WACC and a 2.5% terminal growth rate.
What is Genpact Limited (G)'s Rule of 40 score and Free Cash Flow margin?
Genpact Limited achieves a Rule of 40 score of 17.6%, combining a 6.5% revenue growth run-rate with a 11.1% TTM free cash flow margin on $4.77B in trailing twelve-month revenue. In the Software & Cloud Services peer cohort, the median Rule of 40 benchmark is 53.5%.
What revenue growth rate is priced into G stock according to Reverse-DCF analysis?
At $46.60 per share (Enterprise Value of $8.95B), our Reverse-DCF solver indicates the market is pricing in a 5-year implied revenue CAGR of 7.5%, compared to Genpact Limited's historical CAGR of 6.5%. Overall market expectations are rated as "Fairly Priced to Fundamentals".
How does Genpact Limited compare to Software & Cloud Services software peers?
Genpact Limited (G) earns an institutional Software Quality Score of 63/100 (Grade B — Mixed Fundamental Profile). Across its Software & Cloud Services peer group (NOW, WDAY, CRM, DDOG, SNOW), the cohort trades at a median EV/TTM Revenue multiple of 10.8× and a median gross margin of 78.2%.
How does Stock-Based Compensation (SBC) impact Genpact Limited (G)'s valuation?
Genpact Limited recorded $0 in TTM stock-based compensation (15.0% of revenue). When treating SBC as a cash-equivalent compensation expense, Genpact Limited's SBC-adjusted free cash flow yield is 6.5%, scoring 25/25 on our Shareholder Dilution Friction pillar.