Latest Ratios: P/E Ratio 10.8x · EV/EBITDA 7.8x · ROE 22.4%. (2005–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.7B | $8.3B | $7.7B | $6.4B | $8.7B | $10.2B | $8.1B | $8.2B | $5.2B | $6.3B | $5.1B |
| Enterprise Value | $6.6B | $9.2B | $8.5B | $7.3B | $9.8B | $11.3B | $9.4B | $9.6B | $6.2B | $7.0B | $5.6B |
| P/E Ratio → | 10.81 | 14.95 | 15.07 | 10.18 | 24.64 | 27.79 | 26.34 | 27.03 | 18.61 | 23.69 | 19.02 |
| P/S Ratio | 1.13 | 1.63 | 1.63 | 1.44 | 1.99 | 2.55 | 2.18 | 2.34 | 1.74 | 2.29 | 1.99 |
| P/B Ratio | 2.35 | 3.24 | 3.24 | 2.86 | 4.77 | 5.40 | 4.41 | 4.87 | 1.06 | 4.38 | 3.96 |
| P/FCF | 7.81 | 11.25 | 14.62 | 14.87 | 22.38 | 16.08 | 15.77 | 25.79 | 29.23 | 21.91 | 19.90 |
| P/OCF | 7.06 | 10.17 | 12.59 | 13.09 | 19.64 | 14.75 | 13.87 | 19.23 | 15.42 | 17.42 | 14.79 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.81 | 1.79 | 1.64 | 2.23 | 2.82 | 2.53 | 2.73 | 2.06 | 2.55 | 2.17 |
| EV / EBITDA | 7.78 | 10.73 | 10.71 | 10.00 | 15.46 | 16.77 | 15.71 | 17.20 | 13.66 | 16.34 | 13.21 |
| EV / EBIT | 8.75 | 11.77 | 11.30 | 10.99 | 18.66 | 20.95 | 20.59 | 21.32 | 15.03 | 19.32 | 15.83 |
| EV / FCF | — | 12.49 | 16.12 | 17.00 | 25.08 | 17.81 | 18.31 | 30.07 | 34.46 | 24.41 | 21.75 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 35.6% | 35.6% | 35.5% | 35.1% | 35.1% | 35.6% | 34.8% | 34.8% | 36.0% | 38.6% | 39.5% |
| Operating Margin | 15.0% | 15.0% | 14.7% | 14.1% | 11.5% | 12.7% | 11.8% | 12.2% | 11.6% | 12.1% | 13.3% |
| Net Profit Margin | 10.9% | 10.9% | 10.8% | 14.1% | 8.1% | 9.2% | 8.3% | 8.7% | 9.4% | 9.5% | 10.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 22.4% | 22.4% | 22.2% | 31.0% | 19.0% | 19.8% | 17.5% | 9.2% | 8.8% | 19.2% | 20.6% |
| ROA | 10.2% | 10.2% | 10.5% | 13.4% | 7.4% | 7.5% | 6.6% | 7.6% | 8.1% | 8.2% | 9.4% |
| ROIC | 17.2% | 17.2% | 16.6% | 15.7% | 12.8% | 12.4% | 10.6% | 7.2% | 6.5% | 12.7% | 15.0% |
| ROCE | 18.4% | 18.4% | 18.7% | 18.1% | 14.0% | 13.9% | 12.2% | 14.1% | 13.5% | 13.9% | 15.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.69 | 0.69 | 0.60 | 0.67 | 0.93 | 1.05 | 1.08 | 1.09 | 0.26 | 0.85 | 0.69 |
| Debt / EBITDA | 2.06 | 2.06 | 1.81 | 2.05 | 2.69 | 2.96 | 3.32 | 3.29 | 2.89 | 2.85 | 2.12 |
| Net Debt / Equity | — | 0.36 | 0.33 | 0.41 | 0.58 | 0.58 | 0.71 | 0.81 | 0.19 | 0.50 | 0.37 |
| Net Debt / EBITDA | 1.07 | 1.07 | 1.00 | 1.25 | 1.66 | 1.63 | 2.18 | 2.45 | 2.07 | 1.67 | 1.12 |
| Debt / FCF | — | 1.24 | 1.50 | 2.13 | 2.70 | 1.73 | 2.54 | 4.28 | 5.22 | 2.49 | 1.85 |
| Interest Coverage | 10.61 | 10.61 | 9.51 | 10.08 | 9.01 | 9.29 | 8.12 | 8.87 | 8.46 | 9.03 | 15.07 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.66 | 1.66 | 2.16 | 1.44 | 1.61 | 1.47 | 1.45 | 1.70 | 1.39 | 1.71 | 1.68 |
| Quick Ratio | 1.66 | 1.66 | 2.16 | 1.44 | 1.61 | 1.47 | 1.45 | 1.70 | 1.23 | 1.48 | 1.44 |
| Cash Ratio | 0.75 | 0.75 | 0.70 | 0.44 | 0.59 | 0.69 | 0.57 | 0.51 | 0.38 | 0.60 | 0.58 |
| Asset Turnover | — | 0.87 | 0.96 | 0.93 | 0.95 | 0.81 | 0.76 | 0.79 | 0.85 | 0.79 | 0.89 |
| Inventory Turnover | — | — | — | — | — | — | — | — | 12.79 | 8.78 | 9.01 |
| Days Sales Outstanding | — | 91.93 | 94.27 | 92.43 | 84.03 | 81.33 | 87.58 | 96.77 | 96.90 | 92.43 | 87.36 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.0% | 1.4% | 1.4% | 1.6% | 1.1% | 0.8% | 0.9% | 0.8% | 1.1% | 0.7% | — |
| Payout Ratio | 21.3% | 21.3% | 21.1% | 15.8% | 26.0% | 21.8% | 24.1% | 21.2% | 20.3% | 17.9% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 9.2% | 6.7% | 6.6% | 9.8% | 4.1% | 3.6% | 3.8% | 3.7% | 5.4% | 4.2% | 5.3% |
| FCF Yield | 12.8% | 8.9% | 6.8% | 6.7% | 4.5% | 6.2% | 6.3% | 3.9% | 3.4% | 4.6% | 5.0% |
| Buyback Yield | 4.9% | 3.4% | 3.3% | 3.5% | 2.5% | 2.9% | 1.7% | 0.4% | 2.9% | 3.5% | 6.7% |
| Total Shareholder Yield | 6.9% | 4.9% | 4.7% | 5.1% | 3.5% | 3.7% | 2.6% | 1.2% | 4.0% | 4.3% | 6.7% |
| Shares Outstanding | — | $177M | $180M | $185M | $188M | $193M | $196M | $195M | $194M | $197M | $210M |
Includes 30+ ratios · 21 years · Updated daily
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Quick answers to the most common questions about buying G stock.
Genpact Limited's current P/E ratio is 10.8x. The historical average is 26.4x. This places it at the 5th percentile of its historical range.
Genpact Limited's current EV/EBITDA is 7.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.1x.
Genpact Limited's return on equity (ROE) is 22.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 15.2%.
Based on historical data, Genpact Limited is trading at a P/E of 10.8x. This is at the 5th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Genpact Limited's current dividend yield is 1.97% with a payout ratio of 21.3%.
Genpact Limited has 35.6% gross margin and 15.0% operating margin. Operating margin between 10-20% is typical for established companies.
Genpact Limited's Debt/EBITDA ratio is 2.1x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
AI cannibalization of legacy contracts
Metrics are mathematically derived from official filings.
Discounted Multiple Reflects AI Fears
Genpact trades at 10.8x trailing earnings and 7.8x EV/EBITDA, a steep discount to peers like ExlService at 22.6x, per market data, suggesting the market prices in AI disruption.
The forward P/E of 8.3x implies the market expects minimal earnings growth despite the company's raised guidance, which appears overly pessimistic given the ATS segment's 25% growth. The PEG of 0.73 indicates the stock is undervalued relative to its growth rate, but this hinges on the sustainability of the AI pivot. Investors should monitor whether the discount narrows as AI-driven revenue becomes more visible.
Margin Stability Masks Mix Shift
Gross margin improved to 36.5% in Q2 2026 from 35.9% a year earlier, as per financial statements, while operating margin held near 14.4%, indicating stable profitability despite AI investments.
The slight gross margin expansion suggests AI-led services are not yet compressing pricing, but the flat operating margin implies SG&A reinvestment is absorbing any gains. Net margin of 10.8% remains healthy, yet stock-based compensation at 33% of net income, as disclosed, inflates reported earnings quality. The true earning power may be better measured by pre-SBC margins, which would be lower.
ROIC Stagnant Despite Deleveraging
ROIC has hovered around 4% over the past ten quarters, as per reported figures, even as debt-to-equity fell from 0.80 to 0.54, indicating that capital efficiency is not improving.
The stable ROIC suggests that while the balance sheet is healthier, the company is not generating incremental returns on its invested capital. This could reflect heavy investment in AI and acquisitions that have yet to yield returns. ROE, though higher at 5.7%, is still modest, and the gap between ROIC and ROE is narrowing, implying less financial leverage benefit. Investors should watch for ROIC acceleration as the AI pivot matures.
Working Capital Swings Distort Efficiency
DSO has remained stable around 91-94 days over the past ten quarters, as per financial statements, but cash conversion cycle data is unavailable, and quarterly FCF margins swing wildly from -4.2% to 22.6%.
The stable DSO suggests consistent collections, but the extreme FCF margin volatility indicates significant working capital timing effects, likely from transition costs and seasonal billing. The near-zero DPO (2-5 days) implies Genpact pays suppliers almost immediately, which is unusual and may reflect a labor-heavy cost structure with minimal payables. This efficiency profile suggests the company has limited leverage over suppliers, but its asset-light model keeps capital intensity low.
Leverage Eases, Coverage Improves
Debt-to-equity improved to 0.54 in Q2 2026 from 0.80 in Q2 2024, while interest coverage rose to 9.6x, as per reported figures, indicating a more comfortable debt service position.
The reduction in leverage, with total debt falling from $1.9B to $1.4B, suggests management is prioritizing balance sheet strength. Interest coverage above 9x provides ample cushion, and the low D/E of 0.54 is well below peers like Wipro at 0.23, though higher than Cognizant's 0.10. The company's cash position of $517M, down from $853M, warrants monitoring, but the overall leverage profile appears healthy.
Liquidity Buffer Adequate but Cash Declines
Current ratio improved to 2.00 in Q2 2026 from 1.54 in Q1 2024, as per balance sheet data, but cash dropped to $517M from $853M in Q4 2025, indicating a tighter cash buffer.
The current ratio of 2.0 suggests sufficient short-term assets to cover liabilities, but the declining cash balance, coupled with capital returns exceeding FCF in Q2 2026, implies reliance on cash reserves. The quick ratio equals the current ratio, indicating no inventory dependence, which is typical for a services firm. Under severe stress, the company could face liquidity constraints if cash continues to decline, but the low debt and strong coverage provide a cushion.
Valuation Gap vs. Digital Peers
Genpact's P/E of 10.8x is a fraction of ExlService's 22.6x and below Cognizant's 12.9x, as per market data, while its ROIC of 4.0% lags all peers, indicating a structural discount.
The wide valuation gap suggests the market views Genpact as a legacy BPO with higher AI disruption risk, despite its ATS growth. Its ROIC is significantly lower than ExlService's 20.4% and Cognizant's 18.7%, which may reflect a heavier asset base from acquisitions or lower margins on core services. The discount may be warranted if the AI pivot fails to lift returns, but the raised guidance suggests potential for re-rating.
Misapplied ROIC in Asset-Light Model
ROIC is commonly misapplied to Genpact because its asset-light model and heavy goodwill from acquisitions distort invested capital, as per balance sheet data, understating true economic returns.
With goodwill of $1.8B representing 33% of total assets, ROIC is artificially depressed because invested capital includes acquisition intangibles that do not generate operating income. A more accurate measure would be ROIC excluding goodwill, which would likely be significantly higher. Additionally, the company's heavy use of stock-based compensation means reported net income overstates cash earnings, so investors should adjust for SBC when evaluating returns. Using cash-based ROIC or economic value added would provide a clearer picture of value creation.