Genpact Limited Intrinsic Value Calculation – Baird Downgrades GENPACT Limited, Sees No Near-Term Catalyst for Recovery
December 17, 2023
🌧️Trending News
Baird recently downgraded GENPACT ($NYSE:G) Limited, one of the world’s leading professional services firms, due to the lack of any near-term catalyst for recovery. This has caused the stock price of GENPACT Limited to take a hit, with analysts predicting further declines in the near future. GENPACT Limited is a global professional services firm that provides business process management, digital transformation, analytics, and technology services. They are also expanding their offerings to include cloud and AI technologies.
GENPACT Limited has seen significant growth over the past few years, but Baird’s downgrade suggests that there may not be any near-term catalyst for recovery. This has caused a decline in their stock price, with analysts predicting further declines in the near future. Investing in GENPACT Limited may be a risky move at this time, as there appears to be no immediate catalyst for a recovery in the near future.
Market Price
Friday saw the stock of GENPACT LIMITED close at $34.8, a drop of 1.7% from the previous day’s closing price of $35.4. This prompted Baird to downgrade the stock, citing a lack of near-term catalysts for recovery. This news pushed investors to re-evaluate their portfolios, as this downgrade has raised doubts about the future of GENPACT LIMITED. As the company does not anticipate any near-term catalysts to bring about significant changes in its stock price, it remains to be seen if any other external factors will help to reverse its current downward trajectory. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Genpact Limited. More…
| Total Revenues | Net Income | Net Margin |
| 4.43k | 429.66 | 9.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Genpact Limited. More…
| Operations | Investing | Financing |
| 528.53 | -59.41 | -438.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Genpact Limited. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.6k | 2.59k | 11.08 |
Key Ratios Snapshot
Some of the financial key ratios for Genpact Limited are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.2% | 8.9% | 14.3% |
| FCF Margin | ROE | ROA |
| 10.7% | 20.0% | 8.6% |
Analysis – Genpact Limited Intrinsic Value Calculation
At GoodWhale, we’ve conducted an analysis of GENPACT LIMITED‘s fundamentals and have come to the conclusion that the intrinsic value of the company’s share is around $47.7. This value has been calculated using our proprietary Valuation Line. Right now, GENPACT LIMITED stock is being traded at $34.8, which is undervalued by 27.0%. This presents an excellent investment opportunity for those looking to buy a quality stock at a bargain price. More…
Peers
The company has a strong focus on data analytics and artificial intelligence, and has been successful in implementing these technologies for its clients.
– Cognizant Technology Solutions Corp ($NASDAQ:CTSH)
Cognizant Technology Solutions Corp is a leading provider of information technology, consulting, and business process outsourcing services. The company has a market cap of $30.95 billion and a return on equity of 18.92%. Cognizant Technology Solutions Corp provides a full range of services, including application development and maintenance, infrastructure management, and business process outsourcing. The company serves clients in a variety of industries, including banking and financial services, healthcare, manufacturing, retail, and telecommunications.
– ExlService Holdings Inc ($NASDAQ:EXLS)
ExlService Holdings Inc is a provider of operations management and analytics services. The company has a market cap of 5.31 billion as of 2022 and a return on equity of 15.13%. The company’s operations management and analytics services help businesses optimize their operations and improve their decision-making.
– Larsen & Toubro Infotech Ltd ($BSE:540005)
Larsen & Toubro Infotech Ltd, a subsidiary of Larsen & Toubro Ltd, is an Indian multinational provider of information technology, consulting and business process outsourcing services. Headquartered in Mumbai, the company has over 43,000 employees across 46 countries.
Larsen & Toubro Infotech’s market cap as of 2022 is 834.42B, with a return on equity of 23.67%. The company is a leading provider of information technology, consulting and business process outsourcing services, with a strong presence in India and across 46 countries.
Summary
Recent investment analysis of GENPACT LIMITED has been bearish, as Baird has downgraded their stock citing a lack of near-term catalysts for recovery. Many investors believe that GENPACT’s stock price could remain low or even decline further in the near future. Investors are advised to exercise caution and assess their risk-reward tolerance before making decisions on their GENPACT exposure.
It is recommended to study the company’s financials and management to gain a better understanding of its current state of affairs. As always, investors should conduct thorough research before making any investments.
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